NC ADJUSTER LICENSE STUDY GUIDE NEWEST 2024- 2025 ACTUAL EXAM COMPLETE
270 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A
1. A business that develops monetary reserves so that Self-Insurer
the company can pay claims rather paying premiums
to an insurer is known as a .
2. is a form of reinsurance that is negotiated Facultative Rein-
separately for each insurance contract. The reinsur- surance
ing company decides whether to insure or reject in-
dividual risks from a ceding company.
3. in the contract of insurance means that Pro-Rata
the insurance company must return any advanced
unused premium paid by the policyowner if the in-
surance company terminates the contract before the
policy period ends.
4. is a form of reinsurance in which a ceding Reinsurance
company is contractually bound to cede a percentage
of the risk, and a reinsurer is bound by contract to
accept a portion of the of risk.
5. Which of the following insurance operations makes Reciprocal Ex-
use of an Attorney-in-fact as an administrator? change
6. A key element is creating an insurance policy is that a Accidental
loss from a covered risk must be in nature.
7. are organized under the laws of the Domestic Insurer
same state in which they are domiciled.
8. To create a viable insurance contract, an insurance Small number of
company must determine if the risk is insurable. similar exposures
Insurable risks meet the following criteria EXCEPT
.
9. Which of the following would NOT be a factor in insur- Potential losses
ing a risk? must be cata-
srophic
10. is a legal impediment to one party deny- Estoppel
ing the consequences of its own actions.
,NC ADJUSTER LICENSE STUDY GUIDE NEWEST 2024- 2025 ACTUAL EXAM COMPLETE
270 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A
11. Which of the following refer to an insurer incorporat- Alien
ed or organized in another country?
12. in an insurance policy is a legal statement Representation
of fact that is "true to the best of one's knowledge.
13. is the term used to indicate that the selec- Adverse Selection
tion of such a risk has a greater than average chance
of producing a loss.
14. A(n) Contract is a contract type that Indemenity
promises to pay an amount equal to the property
covered under the policy if a loss occurs.
15. What type of insurance operation is used to insure Lloyds of London
unusual risks?
16. An insurance company that has its headquarters Foreign Insurer
in New York state doing business in North Carolina
would be considered which of the following under
North Carolina insurance regulations?
17. A is a contract type in which the insurer Valued Contract
agrees to pay a specific sum of money no matter what
the amount of loss may be.
18. Which of the following statements about the insur- The insurance
ance contract is TRUE? contract is consid-
ered a unilateral
contract.
19. What type of insurance is used between insurers to Reinsurance
provide insurance on the same risk?
20. A fire in a fire place would be considered which of the Friendly Fire
following?
21. Insurance policies will typically cover all of the fol- Slander
lowing risks EXCEPT .
, NC ADJUSTER LICENSE STUDY GUIDE NEWEST 2024- 2025 ACTUAL EXAM COMPLETE
270 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A
22. K guaranteed that she has a working burglar alarm Breach of Con-
system in her business when she applied for a Busi- tract
ness Owners policy. K never installed the system. In
contract terms, what would this failure be defined as?
23. K inherited a house from her grandmother that was Functional Re-
around seventy-five (75) years old. The house fea- placement
tured plaster walls instead of sheetrock. Unfortunate-
ly a fire damaged part of the living room and repairs
were required to the walls. The insurance company
replaced the damaged plaster walls with sheetrock.
Under what provision in the insurance policy is the in-
surance company allowed to "substitute" sheetrock
for plaster?
24. Which of the following terms means that the original Endorsement
policy has been changed?
25. Which is an example of a pure risk? Threat of fire dam-
age to property.
26. are circumstances that increase a risk due Morale Hazard
to a person's indifferent attitude that causes a loss.
27. is a legal impediment to one party denying Estoppel
the consequences of its own actions.
28. Which part of the insurance policy would contain the Insuring Agree-
list of perils covered under the policy? ment
29. If a particular insurance policy identifies the perils(s) Named Perils
that it covers, this is referred to as a policy.
30. J wants to purchase property insurance exclusively Specific Coverage
on a valuable painting he has purchased. In insurance
terms when the insurance policy covers a single item
is referred to as a policy.
31. In a split limits liability policy, the second number
represents which of the following?
270 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A
1. A business that develops monetary reserves so that Self-Insurer
the company can pay claims rather paying premiums
to an insurer is known as a .
2. is a form of reinsurance that is negotiated Facultative Rein-
separately for each insurance contract. The reinsur- surance
ing company decides whether to insure or reject in-
dividual risks from a ceding company.
3. in the contract of insurance means that Pro-Rata
the insurance company must return any advanced
unused premium paid by the policyowner if the in-
surance company terminates the contract before the
policy period ends.
4. is a form of reinsurance in which a ceding Reinsurance
company is contractually bound to cede a percentage
of the risk, and a reinsurer is bound by contract to
accept a portion of the of risk.
5. Which of the following insurance operations makes Reciprocal Ex-
use of an Attorney-in-fact as an administrator? change
6. A key element is creating an insurance policy is that a Accidental
loss from a covered risk must be in nature.
7. are organized under the laws of the Domestic Insurer
same state in which they are domiciled.
8. To create a viable insurance contract, an insurance Small number of
company must determine if the risk is insurable. similar exposures
Insurable risks meet the following criteria EXCEPT
.
9. Which of the following would NOT be a factor in insur- Potential losses
ing a risk? must be cata-
srophic
10. is a legal impediment to one party deny- Estoppel
ing the consequences of its own actions.
,NC ADJUSTER LICENSE STUDY GUIDE NEWEST 2024- 2025 ACTUAL EXAM COMPLETE
270 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A
11. Which of the following refer to an insurer incorporat- Alien
ed or organized in another country?
12. in an insurance policy is a legal statement Representation
of fact that is "true to the best of one's knowledge.
13. is the term used to indicate that the selec- Adverse Selection
tion of such a risk has a greater than average chance
of producing a loss.
14. A(n) Contract is a contract type that Indemenity
promises to pay an amount equal to the property
covered under the policy if a loss occurs.
15. What type of insurance operation is used to insure Lloyds of London
unusual risks?
16. An insurance company that has its headquarters Foreign Insurer
in New York state doing business in North Carolina
would be considered which of the following under
North Carolina insurance regulations?
17. A is a contract type in which the insurer Valued Contract
agrees to pay a specific sum of money no matter what
the amount of loss may be.
18. Which of the following statements about the insur- The insurance
ance contract is TRUE? contract is consid-
ered a unilateral
contract.
19. What type of insurance is used between insurers to Reinsurance
provide insurance on the same risk?
20. A fire in a fire place would be considered which of the Friendly Fire
following?
21. Insurance policies will typically cover all of the fol- Slander
lowing risks EXCEPT .
, NC ADJUSTER LICENSE STUDY GUIDE NEWEST 2024- 2025 ACTUAL EXAM COMPLETE
270 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A
22. K guaranteed that she has a working burglar alarm Breach of Con-
system in her business when she applied for a Busi- tract
ness Owners policy. K never installed the system. In
contract terms, what would this failure be defined as?
23. K inherited a house from her grandmother that was Functional Re-
around seventy-five (75) years old. The house fea- placement
tured plaster walls instead of sheetrock. Unfortunate-
ly a fire damaged part of the living room and repairs
were required to the walls. The insurance company
replaced the damaged plaster walls with sheetrock.
Under what provision in the insurance policy is the in-
surance company allowed to "substitute" sheetrock
for plaster?
24. Which of the following terms means that the original Endorsement
policy has been changed?
25. Which is an example of a pure risk? Threat of fire dam-
age to property.
26. are circumstances that increase a risk due Morale Hazard
to a person's indifferent attitude that causes a loss.
27. is a legal impediment to one party denying Estoppel
the consequences of its own actions.
28. Which part of the insurance policy would contain the Insuring Agree-
list of perils covered under the policy? ment
29. If a particular insurance policy identifies the perils(s) Named Perils
that it covers, this is referred to as a policy.
30. J wants to purchase property insurance exclusively Specific Coverage
on a valuable painting he has purchased. In insurance
terms when the insurance policy covers a single item
is referred to as a policy.
31. In a split limits liability policy, the second number
represents which of the following?
