NC Claims Adjuster Exam Study
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1. Liability Insurance PAP (Part A): Pays all the sums and insured must legally pay
as damage due to BI/PD caused by an accident and resulting from the ownership,
maintenance or use of a covered auto.
2. Coverage Part A through F of a PAP: A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
3. Certificate of Insurance (COI): A document that proves the existence of insur-
ance coverage
4. Occurrence: Something that continue to happen and may cause injury later on.
5. Accident: A sudden unforseen and unintended one time event
6. Assumption of risk: An individual who is aware of the potential risk involved and
chose to expose themselves to it.
7. Comparative negligence: Measures the amount of negligence contributed to
each party. The injured party will not cover damages equal to the percentage of
negligence they contribute.
8. Contributory Negligence: If an insured party contributed to their injury in anyway
due to their own negligence, we will not pay anything.
9. What state is a contributory state?: North Carolina
10. Negligence: Failure to do (or not do) what a reasonable prudent person would
or would not have done in a similar instance.
11. Temporary Substitute Automobile: Not owned by the named insured but used
temporarily as a substitute for the owned auto that is not currently being used.
12. What is an example of a Temporary substitute Automobile?: A dealership
loans an insured a vehicle to drive while their car is getting fixed.
13. Non Owned Automobile: Not owned by the named insured or any relative.
14. What is an example of an Non Owned Automobile?: An insured borrows a
neighbors car.
15. If an additional vehicle is not reported to the insurer within 30 days:: No
coverage will apply to the added vehicle.
16. If a vehicle is added to an existing policy (In addition to):: It will have the
broadest coverage if insured within 30 days of becoming the owner.
17. If a replacement vehicle is not reported within 30 days:: Part D (Comprehen-
sive and Collision Coverage) will not apply to the replacement vehicle.
18. A new vehicle that replaces another vehicle will:: Have the same coverages
as the old vehicle if the named insured request to insure it within 30 days of becoming
the owners.
, NC Claims Adjuster Exam Study
Study online at https://quizlet.com/_3aw90k
19. Insured: Any blood relative by marriage, adoption, wards, foster children, living
in the same home, including children away at college. Also, any person using
someones car with their permission.
20. Named insured: Listed on the declarations page. Included a spouse wether they
are named in the policy or not, provided they live in the same home.
21. 1st Coverage for watercraft or yacht are:: Hull insurance for damage to the
insured boat itself
22. 2nd Coverage for watercraft or yacht are:: Protection and indemnity liability
coverage for BI and PD exposures for damage to other people or other peoples
boats.
23. What doesn't watercraft or yacht coverage provide?: Coverage for boats
used for hire, charger, or for transporting people for a fee.
24. How many days removal coverage is provided on the National Flood Insur-
ance Program?: 45 days
25. Elevation certificates: Required on dwellings that are written in the regular
program in certain flood zones in order to properly rate the policy.
26. Flood insurance policies become effective after:: 30 days after receipt of the
coverage application and the premium payment.
27. The general property form on flood insurance is used to:: Insure larger
residential structures and non residential buildings.
28. The dwellings form on a flood insurance plan is:: Used to ensure residential
property of no more than 4 units and the contents
29. Flood insurance is available in 2 forms, what are they?: 1. Dwelling
2. General property
30. The deductible for an emergency plan applies:: Separately to the building
loss and contents if purchased on a per occurrence basis.
31. How much is the deductible on an emergency plan?: $1,000 Deductibe
32. The community becomes eligible for a regular plan:: When a community
complied with flood control requirements and the extent of the flood plan has been
mapped.
33. What are the 1st definition included in a flood?: Overflow of inland or tidal
water
34. What is the 2nd definition included in a flood?: Unusual accumulation and
run off of surface waters
35. What is the 3rd definition included in a flood?: Mud flows or mudslides in
normally dry land areas
36. What is the 4th definition included in a flood?: Abnormal flood related erosion
of shorelines
, NC Claims Adjuster Exam Study
Study online at https://quizlet.com/_3aw90k
37. What is a flood?: General and temporary conditions of partial or complete
inundation of normally dry land areas.
38. What is the 1st thing the "write your own" program will allow?: Private
insurance companies to sell and service flood insurance in their own name.
39. What is the 2nd thing the "write your own" program will allow?: Collect
Premiums
40. What is the 3rd thing the "write your own" program will allow?: Keep
percentage of premiums to cover expenses and profit.
41. What is the 4th thing the "write you own program will allow?: Invest the rest
of the profit to provide funds to pay claims.
42. What is the purpose of the National Flood Insurance Program?: The en-
courage communities to practice flood control and to restrict development in flood
prone areas.
43. What does the The Federal Insurance Administration (FIA) do?: Sets rates,
coverage limits, and eligibility requirements for flood insurance through the National
Flood Insurance Program.
44. What does the Federal Emergency Management Agency (FEMA) Do?: Sets
program standards for the National Flood Insurance Program.
45. How many roomers and boarders can a dwelling policy insure?: Up to 5
roomers and boarders
46. How many roomers and boarders can a homeowners policy insure?: Up to
2 roomers and boarders.
47. What is probability?: Measuring the chance of an event occuring
48. What is a risk?: The uncertainty of a loss
49. What is a pure risk?: A chance of loss only
50. What is speculative risk?: When there is a chance of gain and a chance of loss
51. What is a broker?: A person who represents the insurED. They also must be
able to post a bond more than or equal to $15,000 in favor of the state of NC.
52. What is the characteristics of insurable risk?: A low probability of a loss
occurring
Less than catastrophic results
Lost must be measurable
The loss must be significant
The loss must be accidental and unintended
53. What is insurable risk?: A risk an insurance company is willing to accept.
54. A transfer of risk: Insurance
55. What is the 1st way to prevent adverse selection?: Rate up marginal risk
56. What is the 2nd way to prevent adverse selection?: Insurability standards
Study online at https://quizlet.com/_3aw90k
1. Liability Insurance PAP (Part A): Pays all the sums and insured must legally pay
as damage due to BI/PD caused by an accident and resulting from the ownership,
maintenance or use of a covered auto.
2. Coverage Part A through F of a PAP: A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
3. Certificate of Insurance (COI): A document that proves the existence of insur-
ance coverage
4. Occurrence: Something that continue to happen and may cause injury later on.
5. Accident: A sudden unforseen and unintended one time event
6. Assumption of risk: An individual who is aware of the potential risk involved and
chose to expose themselves to it.
7. Comparative negligence: Measures the amount of negligence contributed to
each party. The injured party will not cover damages equal to the percentage of
negligence they contribute.
8. Contributory Negligence: If an insured party contributed to their injury in anyway
due to their own negligence, we will not pay anything.
9. What state is a contributory state?: North Carolina
10. Negligence: Failure to do (or not do) what a reasonable prudent person would
or would not have done in a similar instance.
11. Temporary Substitute Automobile: Not owned by the named insured but used
temporarily as a substitute for the owned auto that is not currently being used.
12. What is an example of a Temporary substitute Automobile?: A dealership
loans an insured a vehicle to drive while their car is getting fixed.
13. Non Owned Automobile: Not owned by the named insured or any relative.
14. What is an example of an Non Owned Automobile?: An insured borrows a
neighbors car.
15. If an additional vehicle is not reported to the insurer within 30 days:: No
coverage will apply to the added vehicle.
16. If a vehicle is added to an existing policy (In addition to):: It will have the
broadest coverage if insured within 30 days of becoming the owner.
17. If a replacement vehicle is not reported within 30 days:: Part D (Comprehen-
sive and Collision Coverage) will not apply to the replacement vehicle.
18. A new vehicle that replaces another vehicle will:: Have the same coverages
as the old vehicle if the named insured request to insure it within 30 days of becoming
the owners.
, NC Claims Adjuster Exam Study
Study online at https://quizlet.com/_3aw90k
19. Insured: Any blood relative by marriage, adoption, wards, foster children, living
in the same home, including children away at college. Also, any person using
someones car with their permission.
20. Named insured: Listed on the declarations page. Included a spouse wether they
are named in the policy or not, provided they live in the same home.
21. 1st Coverage for watercraft or yacht are:: Hull insurance for damage to the
insured boat itself
22. 2nd Coverage for watercraft or yacht are:: Protection and indemnity liability
coverage for BI and PD exposures for damage to other people or other peoples
boats.
23. What doesn't watercraft or yacht coverage provide?: Coverage for boats
used for hire, charger, or for transporting people for a fee.
24. How many days removal coverage is provided on the National Flood Insur-
ance Program?: 45 days
25. Elevation certificates: Required on dwellings that are written in the regular
program in certain flood zones in order to properly rate the policy.
26. Flood insurance policies become effective after:: 30 days after receipt of the
coverage application and the premium payment.
27. The general property form on flood insurance is used to:: Insure larger
residential structures and non residential buildings.
28. The dwellings form on a flood insurance plan is:: Used to ensure residential
property of no more than 4 units and the contents
29. Flood insurance is available in 2 forms, what are they?: 1. Dwelling
2. General property
30. The deductible for an emergency plan applies:: Separately to the building
loss and contents if purchased on a per occurrence basis.
31. How much is the deductible on an emergency plan?: $1,000 Deductibe
32. The community becomes eligible for a regular plan:: When a community
complied with flood control requirements and the extent of the flood plan has been
mapped.
33. What are the 1st definition included in a flood?: Overflow of inland or tidal
water
34. What is the 2nd definition included in a flood?: Unusual accumulation and
run off of surface waters
35. What is the 3rd definition included in a flood?: Mud flows or mudslides in
normally dry land areas
36. What is the 4th definition included in a flood?: Abnormal flood related erosion
of shorelines
, NC Claims Adjuster Exam Study
Study online at https://quizlet.com/_3aw90k
37. What is a flood?: General and temporary conditions of partial or complete
inundation of normally dry land areas.
38. What is the 1st thing the "write your own" program will allow?: Private
insurance companies to sell and service flood insurance in their own name.
39. What is the 2nd thing the "write your own" program will allow?: Collect
Premiums
40. What is the 3rd thing the "write your own" program will allow?: Keep
percentage of premiums to cover expenses and profit.
41. What is the 4th thing the "write you own program will allow?: Invest the rest
of the profit to provide funds to pay claims.
42. What is the purpose of the National Flood Insurance Program?: The en-
courage communities to practice flood control and to restrict development in flood
prone areas.
43. What does the The Federal Insurance Administration (FIA) do?: Sets rates,
coverage limits, and eligibility requirements for flood insurance through the National
Flood Insurance Program.
44. What does the Federal Emergency Management Agency (FEMA) Do?: Sets
program standards for the National Flood Insurance Program.
45. How many roomers and boarders can a dwelling policy insure?: Up to 5
roomers and boarders
46. How many roomers and boarders can a homeowners policy insure?: Up to
2 roomers and boarders.
47. What is probability?: Measuring the chance of an event occuring
48. What is a risk?: The uncertainty of a loss
49. What is a pure risk?: A chance of loss only
50. What is speculative risk?: When there is a chance of gain and a chance of loss
51. What is a broker?: A person who represents the insurED. They also must be
able to post a bond more than or equal to $15,000 in favor of the state of NC.
52. What is the characteristics of insurable risk?: A low probability of a loss
occurring
Less than catastrophic results
Lost must be measurable
The loss must be significant
The loss must be accidental and unintended
53. What is insurable risk?: A risk an insurance company is willing to accept.
54. A transfer of risk: Insurance
55. What is the 1st way to prevent adverse selection?: Rate up marginal risk
56. What is the 2nd way to prevent adverse selection?: Insurability standards
