N.C. Claims Adjuster EXAM 2025/2026 ACTUAL COMPLETE REAL EXAM QUESTIONS WITH
ACCURATE ANSWERS (VERIFIED ANSWERS) | GET IT RIGHT!! GRADED A+ / 2025 LATEST
EXAM!!
Inception/Expiration Date - (answer)an insurance policy covers the insured starting at 12:01am on the
day on which coverage begins and expires at 12:01am on the expiration day of the policy.
Occurrence Date - (answer)Date of which the loss occurred
Identification of parties involved - (answer)The loss report should include the names and addresses of
the parties involved in the loss, the names and addresses of any injured person(s) and the names and
addresses of any witness(s).
Policy Form/Number - (answer)Identifies the type of coverage purchased (policy form) and the policy
number for the particular policy purchased by the insured.
Description of the Loss - (answer)Information concerning how, when and where the accident or loss
happened is an essential element in any loss report.
Coverage - (answer)Shows the type of coverage(s) purchased as well as the limits of coverage
purchased.
Damages - Special Compensatory damages - (answer)Are amounts paid to compensate the plaintiff for
direct expenses such as medical treatment, lost wages (both past and future), funeral expenses and
rehabilitation expenses required because of bodily injury. Special damages are paid for losses that can
be determined and documented. They are often referred to as "out-of-pocket" expenses.
Damages - General Compensatory Damages - (answer)Are paid for losses that cannot be specifically
measured and itemized in order to compensate the plaintiff for things such as pain and suffering, loss of
the use of an arm or leg, loss of vision, physical disfigurement and/or loss of consortium.
Damages - Punitive Damages - (answer)Are typically awarded to the plaintiff in addition to
compensatory damages when the defendants conduct has been especially malicious. Punitive damages
are awarded to punish the defendant and to deter others from engaging in similar actions.
,N.C. Claims Adjuster EXAM 2025/2026 ACTUAL COMPLETE REAL EXAM QUESTIONS WITH
ACCURATE ANSWERS (VERIFIED ANSWERS) | GET IT RIGHT!! GRADED A+ / 2025 LATEST
EXAM!!
Unfair Claims Settlement Practices - (answer)1. Knowingly misrepresenting relevant facts or policy
provisions relating to the coverage at issue. 2. Failing to acknowledge with reasonable promptness
communications pertaining to claims. 3. Failing to adopt and implement reasonable standards for the
prompt investigation of claims. 4. Arbitrary and unreasonable refusal to pay claims. 5. Failing to affirm or
deny coverage of claims within a reasonable time after proof of loss has been completed. 6. Not
attempting in good faith to make prompt, fair and equitable claims settlement when the insurer's
liability has become reasonably clear. 7. Compelling insureds to institute suits to recover amounts due
under a policy by offering substantially less to settle immediately. 8. Attempting to settle claims for less
than the amount for which a reasonable person would believe one was entitled based on written or
printed advertising material accompanying or made a part of an application. I. Attempting settlement of
claims on the basis of applications that were altered without notice to knowledge of or consent of
insureds.
Total Losses on Motor Vehicles/Miscellaneous Provisions - (answer)1. If the insurer and the claimant are
unable to reach an agreement as to the value of the vehicle, the insurer shall base any further
settlement offer not only on the published regional average value of similar vehicles, but also on the
value of the vehicle in the local market. 2. Local market value shall be determined by using either the
local price of a comparable vehicle or if no comparable vehicle can be found, quotations from at least
two qualified dealers within the local market area. Additionally, if the claimant represents that the
vehicle was in better than average condition, the insurer shall give due consideration to the condition of
the claimant's vehicle prior to the accident. 3. When a motor vehicle is damaged in an amount which
equals or exceeds 75 percent of the preaccident actual cash value, an insurer shall "total loss" the
vehicle by paying the claimant the preaccident value and in return, receiving possession of the legal title
for salvage purposes. 4. The insurer will be responsible for all reasonable towing and storage charges
until three days after the owner and the storage facility are notified in writing that the insurer will no
longer reimburse the owner or storage facility for storage charges. 5. Loss and claims payments shall be
mailed or otherwise delivered within 10 business days after the claim is settled.
After Market Parts - (answer)An after market part is any part made by a non original manufacturer.
Speculative Risk - (answer)When there is a chance of gain as well as a chance of loss. Insurance is not
intended to protect against this type of risk.
Pure Risk - (answer)When there is a chance of loss only.
,N.C. Claims Adjuster EXAM 2025/2026 ACTUAL COMPLETE REAL EXAM QUESTIONS WITH
ACCURATE ANSWERS (VERIFIED ANSWERS) | GET IT RIGHT!! GRADED A+ / 2025 LATEST
EXAM!!
Insurable Risk - (answer)One that an insurance company is willing to accept.
Characteristics of Insurable Risk - (answer)1. Low probability of loss occurring, 2. Less than catastrophic
results, 3. The loss must be measurable, 4. The loss must be significant, 5. The loss must be accidental
and unintended.
Probability - (answer)Measures the chance of an event occurring, it is the measure of uncertainty (risk).
Law of Large Numbers (Law of Averages) - (answer)Mathematical principle that makes it possible to
predict future losses based upon prior experience.
Spread of Risk (Geographic Dispersion) - (answer)Also used to decrease loss probability. This process
involves spreading the company's policies (exposures) over a broad geographical area in order to avoid
large losses in the vent of a catastrophic event. An example is a hurricane.
Adverse Selection - (answer)Adverse selection occurs when insureds with a high risk of loss attempt to
purchase insurance and are successful in obtaining insurance.
Perils - (answer)Are the actual cause of loss such as a fire, theft, wind, hail, etc.
Hazards - (answer)Increase the probability of a peril occurring. Bald tires on an automobile increase the
chance of a wreck happening. The tires are the hazard, the wreck is the peril.
Property Insurance - (answer)Indemnified (repays) a person or business with an interest in the physical
integrity of tangible property for its loss or the loss of income produced by that property.
, N.C. Claims Adjuster EXAM 2025/2026 ACTUAL COMPLETE REAL EXAM QUESTIONS WITH
ACCURATE ANSWERS (VERIFIED ANSWERS) | GET IT RIGHT!! GRADED A+ / 2025 LATEST
EXAM!!
Casualty Insurance - (answer)Provides protection to meet the unexpected costs imposed by law due to
acts that have caused bodily injury or property damage to another individual. Included isn't he field of
casualty (liability) insurance are automobile, crime and surety bonds.
Private or Voluntary Insurance - (answer)Portion of the insurance industry where individuals seek
coverage to meet recognized needs. These coverages are neither required nor made available by
government. An example would be collision insurance in a personal automobile insurance policy.
Social Insurance - (answer)Programs either required or made available by government.
Reinsurance - (answer)Filed of the industry where insurers sell portions of their individual contracts of
insurance to other companies. This activity helps with the spread of risk and/or improves cash positions
by lowering reserve requirements for these contracts. Insurance companies also purchase reinsurance
to protect themselves in case of catastrophic losses.
Capital Stock Companies - (answer)Proprietary companies that are in business to make a profit for their
stockholders. These companies are owned by stockholders who retain management responsibility
through the selection of a Board of Directors. Profits are paid to the stockholders in the form of a
commercial stock dividend that is fully taxable to the stockholder.
Mutual Insurance Companies - (answer)Are owned by their policyholders. Each policyholder "owns" a
part of the company equal to their proportionate share of the company's total insurance in force. The
policyholders select a board of directors who appoint officers to be in charge of the company's daily
operations. Operating surpluses of these companies may be returned to their policyholders in the form
of a non-taxable policy dividend. The dividend is non-taxable because it is a return of premium (the
company charged too much).
Reciprocal (Assessment) Companies - (answer)Are non-incorporated associations of individuals or
businesses (subscribers) who engage in cooperative insurance. Each policyholder is insured by all other
policyholders and each policyholder insures the others as coverage is exchanged on a reciprocal basis.
Two important facts to remember about reciprocals are: 1. Managed by Attorney-in-Fact (not
necessarily a lawyer), 2. The Attorney-in-Fact can assess the policyholders for additional premiums if
underwriting losses jeopardize financial solvency.
ACCURATE ANSWERS (VERIFIED ANSWERS) | GET IT RIGHT!! GRADED A+ / 2025 LATEST
EXAM!!
Inception/Expiration Date - (answer)an insurance policy covers the insured starting at 12:01am on the
day on which coverage begins and expires at 12:01am on the expiration day of the policy.
Occurrence Date - (answer)Date of which the loss occurred
Identification of parties involved - (answer)The loss report should include the names and addresses of
the parties involved in the loss, the names and addresses of any injured person(s) and the names and
addresses of any witness(s).
Policy Form/Number - (answer)Identifies the type of coverage purchased (policy form) and the policy
number for the particular policy purchased by the insured.
Description of the Loss - (answer)Information concerning how, when and where the accident or loss
happened is an essential element in any loss report.
Coverage - (answer)Shows the type of coverage(s) purchased as well as the limits of coverage
purchased.
Damages - Special Compensatory damages - (answer)Are amounts paid to compensate the plaintiff for
direct expenses such as medical treatment, lost wages (both past and future), funeral expenses and
rehabilitation expenses required because of bodily injury. Special damages are paid for losses that can
be determined and documented. They are often referred to as "out-of-pocket" expenses.
Damages - General Compensatory Damages - (answer)Are paid for losses that cannot be specifically
measured and itemized in order to compensate the plaintiff for things such as pain and suffering, loss of
the use of an arm or leg, loss of vision, physical disfigurement and/or loss of consortium.
Damages - Punitive Damages - (answer)Are typically awarded to the plaintiff in addition to
compensatory damages when the defendants conduct has been especially malicious. Punitive damages
are awarded to punish the defendant and to deter others from engaging in similar actions.
,N.C. Claims Adjuster EXAM 2025/2026 ACTUAL COMPLETE REAL EXAM QUESTIONS WITH
ACCURATE ANSWERS (VERIFIED ANSWERS) | GET IT RIGHT!! GRADED A+ / 2025 LATEST
EXAM!!
Unfair Claims Settlement Practices - (answer)1. Knowingly misrepresenting relevant facts or policy
provisions relating to the coverage at issue. 2. Failing to acknowledge with reasonable promptness
communications pertaining to claims. 3. Failing to adopt and implement reasonable standards for the
prompt investigation of claims. 4. Arbitrary and unreasonable refusal to pay claims. 5. Failing to affirm or
deny coverage of claims within a reasonable time after proof of loss has been completed. 6. Not
attempting in good faith to make prompt, fair and equitable claims settlement when the insurer's
liability has become reasonably clear. 7. Compelling insureds to institute suits to recover amounts due
under a policy by offering substantially less to settle immediately. 8. Attempting to settle claims for less
than the amount for which a reasonable person would believe one was entitled based on written or
printed advertising material accompanying or made a part of an application. I. Attempting settlement of
claims on the basis of applications that were altered without notice to knowledge of or consent of
insureds.
Total Losses on Motor Vehicles/Miscellaneous Provisions - (answer)1. If the insurer and the claimant are
unable to reach an agreement as to the value of the vehicle, the insurer shall base any further
settlement offer not only on the published regional average value of similar vehicles, but also on the
value of the vehicle in the local market. 2. Local market value shall be determined by using either the
local price of a comparable vehicle or if no comparable vehicle can be found, quotations from at least
two qualified dealers within the local market area. Additionally, if the claimant represents that the
vehicle was in better than average condition, the insurer shall give due consideration to the condition of
the claimant's vehicle prior to the accident. 3. When a motor vehicle is damaged in an amount which
equals or exceeds 75 percent of the preaccident actual cash value, an insurer shall "total loss" the
vehicle by paying the claimant the preaccident value and in return, receiving possession of the legal title
for salvage purposes. 4. The insurer will be responsible for all reasonable towing and storage charges
until three days after the owner and the storage facility are notified in writing that the insurer will no
longer reimburse the owner or storage facility for storage charges. 5. Loss and claims payments shall be
mailed or otherwise delivered within 10 business days after the claim is settled.
After Market Parts - (answer)An after market part is any part made by a non original manufacturer.
Speculative Risk - (answer)When there is a chance of gain as well as a chance of loss. Insurance is not
intended to protect against this type of risk.
Pure Risk - (answer)When there is a chance of loss only.
,N.C. Claims Adjuster EXAM 2025/2026 ACTUAL COMPLETE REAL EXAM QUESTIONS WITH
ACCURATE ANSWERS (VERIFIED ANSWERS) | GET IT RIGHT!! GRADED A+ / 2025 LATEST
EXAM!!
Insurable Risk - (answer)One that an insurance company is willing to accept.
Characteristics of Insurable Risk - (answer)1. Low probability of loss occurring, 2. Less than catastrophic
results, 3. The loss must be measurable, 4. The loss must be significant, 5. The loss must be accidental
and unintended.
Probability - (answer)Measures the chance of an event occurring, it is the measure of uncertainty (risk).
Law of Large Numbers (Law of Averages) - (answer)Mathematical principle that makes it possible to
predict future losses based upon prior experience.
Spread of Risk (Geographic Dispersion) - (answer)Also used to decrease loss probability. This process
involves spreading the company's policies (exposures) over a broad geographical area in order to avoid
large losses in the vent of a catastrophic event. An example is a hurricane.
Adverse Selection - (answer)Adverse selection occurs when insureds with a high risk of loss attempt to
purchase insurance and are successful in obtaining insurance.
Perils - (answer)Are the actual cause of loss such as a fire, theft, wind, hail, etc.
Hazards - (answer)Increase the probability of a peril occurring. Bald tires on an automobile increase the
chance of a wreck happening. The tires are the hazard, the wreck is the peril.
Property Insurance - (answer)Indemnified (repays) a person or business with an interest in the physical
integrity of tangible property for its loss or the loss of income produced by that property.
, N.C. Claims Adjuster EXAM 2025/2026 ACTUAL COMPLETE REAL EXAM QUESTIONS WITH
ACCURATE ANSWERS (VERIFIED ANSWERS) | GET IT RIGHT!! GRADED A+ / 2025 LATEST
EXAM!!
Casualty Insurance - (answer)Provides protection to meet the unexpected costs imposed by law due to
acts that have caused bodily injury or property damage to another individual. Included isn't he field of
casualty (liability) insurance are automobile, crime and surety bonds.
Private or Voluntary Insurance - (answer)Portion of the insurance industry where individuals seek
coverage to meet recognized needs. These coverages are neither required nor made available by
government. An example would be collision insurance in a personal automobile insurance policy.
Social Insurance - (answer)Programs either required or made available by government.
Reinsurance - (answer)Filed of the industry where insurers sell portions of their individual contracts of
insurance to other companies. This activity helps with the spread of risk and/or improves cash positions
by lowering reserve requirements for these contracts. Insurance companies also purchase reinsurance
to protect themselves in case of catastrophic losses.
Capital Stock Companies - (answer)Proprietary companies that are in business to make a profit for their
stockholders. These companies are owned by stockholders who retain management responsibility
through the selection of a Board of Directors. Profits are paid to the stockholders in the form of a
commercial stock dividend that is fully taxable to the stockholder.
Mutual Insurance Companies - (answer)Are owned by their policyholders. Each policyholder "owns" a
part of the company equal to their proportionate share of the company's total insurance in force. The
policyholders select a board of directors who appoint officers to be in charge of the company's daily
operations. Operating surpluses of these companies may be returned to their policyholders in the form
of a non-taxable policy dividend. The dividend is non-taxable because it is a return of premium (the
company charged too much).
Reciprocal (Assessment) Companies - (answer)Are non-incorporated associations of individuals or
businesses (subscribers) who engage in cooperative insurance. Each policyholder is insured by all other
policyholders and each policyholder insures the others as coverage is exchanged on a reciprocal basis.
Two important facts to remember about reciprocals are: 1. Managed by Attorney-in-Fact (not
necessarily a lawyer), 2. The Attorney-in-Fact can assess the policyholders for additional premiums if
underwriting losses jeopardize financial solvency.
