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NC Adjuster License Exam Prep Material Newest 2025/2026
Complete 100 Questions And Correct Detailed Answers (Verified
Answers)|Brand New Version!
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: - CORRECT ANSWER=The maximum monthly limit of
indemnity optional coverage
Comprehensive personal liability - CORRECT ANSWER=applies liability coverage to activities
or events occurring both on and off the premises.
Ex. The mailman slips and falls in your driveway.
National Flood Insurance Program (NFIP) - CORRECT ANSWER=A government-sponsored
flood insurance program for communities in designated areas.
Torts that can be covered by insurance policies include all of the following, EXCEPT: -
CORRECT ANSWER=Intentional torts purposely committed to cause harm to another.
The insured has a $1,000,000 personal umbrella policy with a $5,000 retention 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: - CORRECT ANSWER=$2,000
All of the following is considered an "insured" under a CGL policy, EXCEPT: - CORRECT
ANSWER=Lawyers of the named insured
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What specific type of liability policy gives an owner protection against liability claims arising
out of the acts of its independent contractors? - CORRECT ANSWER=Owners and Contractors
Protective Liability Policy.
Which of the following would be eligible for coverage under a Businessowners policy? -
CORRECT ANSWER=A small retail store
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? - CORRECT ANSWER=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
All of the following statements are TRUE of North Carolina automobile liability policies,
EXCEPT - CORRECT ANSWER=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.
The basic limit for Coverage F -- Medical Payments of the standard Homeowners forms is: -
CORRECT ANSWER=$1,000 per person
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? - CORRECT
ANSWER=$2,150
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When a claims representative is collecting information from a third-party claimant, which of the
following is the information that should be obtained first? - CORRECT ANSWER=The nature
and extent of the injuries or property damage claimed.
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: - CORRECT
ANSWER=If the insured insures all of their vehicles with the company or it replaces a covered
auto..
What coverage under the BOP automatically applies if a customer slips and falls on the named
insured's premises, regardless of legal liability? - CORRECT ANSWER=Medical expense
coverage
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: - CORRECT ANSWER=Not limited
Standard Fire Policy - CORRECT ANSWER=Insurance against property damage due to fire or
lightning
definitions section - CORRECT ANSWER=the part of an insurance policy that explains specific
terms used throughout the policy, such as ?you? or ?your,? or ?family member?
risk - CORRECT ANSWER=The chance of loss from an event that cannot be entirely controlled
hazard - CORRECT ANSWER=A danger or risk.
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Peril - CORRECT ANSWER=cause of loss
4 Parts of Insurance Contract? - CORRECT ANSWER=Declarations
Conditions
Exclusions
Insuring Agreement
basic form - CORRECT ANSWER=a form of a homeowners policy that insures property against
the basic perils Ex. Fire, lightning, hail, wind damage
Special Peril/Open Peril (All Risk) - CORRECT ANSWER=cover all perils except for those that
are specifically excluded. If it doesn't state its not covered then it is covered. **if there is a
dispute over whether something is covered it would be the insurance company's job to prove its
not covered.
broad form - CORRECT ANSWER=A property and liability policy that provides coverage for
landowners from eighteen specified perils.
HO-4 policy - CORRECT ANSWER=Renters policy. Personal property covered for broad
perils.
HO-5 Comprehensive Form - CORRECT ANSWER=insures the dwelling, other structures, and
personal property against direct physical loss to property
NC Adjuster License Exam Prep Material Newest 2025/2026
Complete 100 Questions And Correct Detailed Answers (Verified
Answers)|Brand New Version!
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: - CORRECT ANSWER=The maximum monthly limit of
indemnity optional coverage
Comprehensive personal liability - CORRECT ANSWER=applies liability coverage to activities
or events occurring both on and off the premises.
Ex. The mailman slips and falls in your driveway.
National Flood Insurance Program (NFIP) - CORRECT ANSWER=A government-sponsored
flood insurance program for communities in designated areas.
Torts that can be covered by insurance policies include all of the following, EXCEPT: -
CORRECT ANSWER=Intentional torts purposely committed to cause harm to another.
The insured has a $1,000,000 personal umbrella policy with a $5,000 retention 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: - CORRECT ANSWER=$2,000
All of the following is considered an "insured" under a CGL policy, EXCEPT: - CORRECT
ANSWER=Lawyers of the named insured
,2|Page
What specific type of liability policy gives an owner protection against liability claims arising
out of the acts of its independent contractors? - CORRECT ANSWER=Owners and Contractors
Protective Liability Policy.
Which of the following would be eligible for coverage under a Businessowners policy? -
CORRECT ANSWER=A small retail store
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? - CORRECT ANSWER=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
All of the following statements are TRUE of North Carolina automobile liability policies,
EXCEPT - CORRECT ANSWER=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.
The basic limit for Coverage F -- Medical Payments of the standard Homeowners forms is: -
CORRECT ANSWER=$1,000 per person
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? - CORRECT
ANSWER=$2,150
,3|Page
When a claims representative is collecting information from a third-party claimant, which of the
following is the information that should be obtained first? - CORRECT ANSWER=The nature
and extent of the injuries or property damage claimed.
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: - CORRECT
ANSWER=If the insured insures all of their vehicles with the company or it replaces a covered
auto..
What coverage under the BOP automatically applies if a customer slips and falls on the named
insured's premises, regardless of legal liability? - CORRECT ANSWER=Medical expense
coverage
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: - CORRECT ANSWER=Not limited
Standard Fire Policy - CORRECT ANSWER=Insurance against property damage due to fire or
lightning
definitions section - CORRECT ANSWER=the part of an insurance policy that explains specific
terms used throughout the policy, such as ?you? or ?your,? or ?family member?
risk - CORRECT ANSWER=The chance of loss from an event that cannot be entirely controlled
hazard - CORRECT ANSWER=A danger or risk.
, 4|Page
Peril - CORRECT ANSWER=cause of loss
4 Parts of Insurance Contract? - CORRECT ANSWER=Declarations
Conditions
Exclusions
Insuring Agreement
basic form - CORRECT ANSWER=a form of a homeowners policy that insures property against
the basic perils Ex. Fire, lightning, hail, wind damage
Special Peril/Open Peril (All Risk) - CORRECT ANSWER=cover all perils except for those that
are specifically excluded. If it doesn't state its not covered then it is covered. **if there is a
dispute over whether something is covered it would be the insurance company's job to prove its
not covered.
broad form - CORRECT ANSWER=A property and liability policy that provides coverage for
landowners from eighteen specified perils.
HO-4 policy - CORRECT ANSWER=Renters policy. Personal property covered for broad
perils.
HO-5 Comprehensive Form - CORRECT ANSWER=insures the dwelling, other structures, and
personal property against direct physical loss to property
