Nc adjuster license practice exam questions and accurate answer
,1. Manny is purchasing a Commercial Property policy with a Business Income form included.
Manny can select from any of the following as a method to provide coverage, while avoiding the coinsurance
requirement, EXCEPT:: The maximum monthly limit of indemnity optional coverage
2. The traditional definition of actual cash value (ACV) is:: Replacement cost minus depreciation
3. Sam and Dan are working to clean out the gutters around the roof on Sam's house. Sam and Dan are standing at the
top of separate ladders that are propped against the side of Sam's house, when Dan's ladder begins to wobble and
ultimately falls into Sam's ladder. Both men and their ladders crash to the ground. Whose injuries will be covered by
Sam's Homeowners policy under Coverage E - Personal Liability?: Only Dan's injuries would be covered
4. Torts that can be covered by insurance policies include all of the following, EXCEPT::
Intentional torts purposely committed to cause harm to another.
5. The insured has a $1,000,000 personal umbrella policy with a $5,000 reten- tion limit. For a
$7,000 liability loss not covered under the insured's personal auto policy, but covered under the umbrella policy, the
insurance company would pay:: $2,000
6. All of the following is considered an "insured" under a CGL policy, EXCEPT:-
: Lawyers of the named insured
7. What specific type of liability policy gives an owner protection against liability claims
,arising out of the acts of its independent contractors?: Owners and Contractors Protective Liability Policy.
8. Which of the following would be eligible for coverage under a Businessown- ers policy?: A small retail store
9. Which of the following is NOT a correct statement in determining the cost of a "comparable automobile" when a
physical damage loss has a occurred?: - The cost of a comparable automobile as determined by a computerized
automobile valuation service that produces statistically valid fair market values within the United States market
10. All of the following statements are TRUE of North Carolina automobile liability policies, EXCEPT: If the
insured carries limits greater than the minimum financial responsibility limits required by state law, they are not
required to carry Uninsured/Underinsured Motorists coverage.
11. The basic limit for Coverage F -- Medical Payments of the standard Home- owners forms is:: $1,000 per person
12. Oliver Dogwood was in an auto accident which destroyed his car. While investigating the accident, Adjuster
Doright found that Mr. Dogwood paid
$1,000 for the vehicle. After checking with others he found the same vehicle
, with an asking price of $1,700, a retail price of $2,150 and a dealer price of
$1,750. What amount will Mr. Dogwood receive?: $2,150
13. When a claims representative is collecting information from a third-party claimant, which of the following is the
information that should be obtained first?: The nature and extent of the injuries or property damage claimed.
14. The Business Auto uses Symbol 7 to cover "specifically described autos" identified in the declarations. An auto
acquired during the policy period will only be covered:: If the insured insures all of their vehicles with the company or it
replaces a covered auto..
15. What coverage under the BOP automatically applies if a customer slips and falls on the named insured's
premises, regardless of legal liability?: Med- ical expense coverage
16. When an insurer is called upon to defend a suit under a CGL policy, the amount that can be paid for the
defense costs is:: Not limited
17. Any North Carolina lender in making or servicing real estate mortgage or deed of trust loans on one to four
family residences must accept a binder as proof of insurance. The binder presented to the lender must include all of the
following, EXCEPT: A sworn statement that the insurance will be kept in force.
18. Which of the following statements is TRUE concerning Part A - Liability coverage on a standard Personal
Automobile policy?: The coverage is provided only for accidents caused by those who are "insureds" under the
,1. Manny is purchasing a Commercial Property policy with a Business Income form included.
Manny can select from any of the following as a method to provide coverage, while avoiding the coinsurance
requirement, EXCEPT:: The maximum monthly limit of indemnity optional coverage
2. The traditional definition of actual cash value (ACV) is:: Replacement cost minus depreciation
3. Sam and Dan are working to clean out the gutters around the roof on Sam's house. Sam and Dan are standing at the
top of separate ladders that are propped against the side of Sam's house, when Dan's ladder begins to wobble and
ultimately falls into Sam's ladder. Both men and their ladders crash to the ground. Whose injuries will be covered by
Sam's Homeowners policy under Coverage E - Personal Liability?: Only Dan's injuries would be covered
4. Torts that can be covered by insurance policies include all of the following, EXCEPT::
Intentional torts purposely committed to cause harm to another.
5. The insured has a $1,000,000 personal umbrella policy with a $5,000 reten- tion limit. For a
$7,000 liability loss not covered under the insured's personal auto policy, but covered under the umbrella policy, the
insurance company would pay:: $2,000
6. All of the following is considered an "insured" under a CGL policy, EXCEPT:-
: Lawyers of the named insured
7. What specific type of liability policy gives an owner protection against liability claims
,arising out of the acts of its independent contractors?: Owners and Contractors Protective Liability Policy.
8. Which of the following would be eligible for coverage under a Businessown- ers policy?: A small retail store
9. Which of the following is NOT a correct statement in determining the cost of a "comparable automobile" when a
physical damage loss has a occurred?: - The cost of a comparable automobile as determined by a computerized
automobile valuation service that produces statistically valid fair market values within the United States market
10. All of the following statements are TRUE of North Carolina automobile liability policies, EXCEPT: If the
insured carries limits greater than the minimum financial responsibility limits required by state law, they are not
required to carry Uninsured/Underinsured Motorists coverage.
11. The basic limit for Coverage F -- Medical Payments of the standard Home- owners forms is:: $1,000 per person
12. Oliver Dogwood was in an auto accident which destroyed his car. While investigating the accident, Adjuster
Doright found that Mr. Dogwood paid
$1,000 for the vehicle. After checking with others he found the same vehicle
, with an asking price of $1,700, a retail price of $2,150 and a dealer price of
$1,750. What amount will Mr. Dogwood receive?: $2,150
13. When a claims representative is collecting information from a third-party claimant, which of the following is the
information that should be obtained first?: The nature and extent of the injuries or property damage claimed.
14. The Business Auto uses Symbol 7 to cover "specifically described autos" identified in the declarations. An auto
acquired during the policy period will only be covered:: If the insured insures all of their vehicles with the company or it
replaces a covered auto..
15. What coverage under the BOP automatically applies if a customer slips and falls on the named insured's
premises, regardless of legal liability?: Med- ical expense coverage
16. When an insurer is called upon to defend a suit under a CGL policy, the amount that can be paid for the
defense costs is:: Not limited
17. Any North Carolina lender in making or servicing real estate mortgage or deed of trust loans on one to four
family residences must accept a binder as proof of insurance. The binder presented to the lender must include all of the
following, EXCEPT: A sworn statement that the insurance will be kept in force.
18. Which of the following statements is TRUE concerning Part A - Liability coverage on a standard Personal
Automobile policy?: The coverage is provided only for accidents caused by those who are "insureds" under the
