NC ADJUSTER FINAL TEST 2026
QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◍ What is the 4th thing the "write you own program will allow?.
Answer: Invest the rest of the profit to provide funds to pay claims.
◍ Indirect Loss is a?.
Answer: That is not a direct result of a covered peril. Ex. Loss of business
earnings due to property damage from a covered peril that prevents a
business from operating is an indirect loss.
◍ What are the min limits of liability for NC?.
Answer: 30/60/25
◍ Proposed rates with the NC Rate bureau may be used in a:.
Answer: Separate escrow account
◍ Res Gestae.
Answer: Excited utterance
◍ Insurance Services Office.
Answer: Calculates rates and creates policy forms such as homeowners and
auto for property and casualty insurers.
◍ Direct Loss is a?.
Answer: Property loss by an unbroken chain of events from covered peril.
◍ Medical payments on a PAP are ineligible for payments on?.
Answer: Motorcycles
◍ Res Ispa Loquitur.
Answer: The thing that speaks for itself
,◍ Risk Avoidance.
Answer: Ensures that an individual or business does not get involved in an
activity leading to a potential financial loss.
◍ Supplementary payments n a CGL will pay up to :.
Answer: $250 per day for earnings lost by the named insured.
◍ What are the 3 ways a CGL can pay claims?.
Answer: Can pay as primaryCan pay in excessCan pay equally with the
other insurer until the claim is paid or the limit of the policy is reached.
◍ What is the single limit for NC?.
Answer: $85,000
◍ Liability coverages for motor boats are for.
Answer: boats not exceeding 50 HP
◍ A domestic insurer is.
Answer: In state
◍ The umbrella policy pays on.
Answer: An excess basis with the underlying policy being the primary
policy without a deductible.
◍ Under the post insurance guaranty association a covered claim is defined
as?.
Answer: A portion of a claim in excess of $50 but less than $300,000 except
for workers compensation claims. Is also not in excess of the face amount
on the policy
◍ Coverage A for building and personal property cover?.
Answer: Buildings
◍ The open peril coverage on preservation of property is covered up to how
many day?.
Answer: 30 days
◍ What are the extensions of coverage under the building and personal
property coverage form?.
, Answer: Newly acquired property covered up to 30 daysValuable records
and papers (limited to 2500 at each described location)Business property
temporarily located off premises other than stock, which is covered up to
$10,000.
◍ What is the 2nd way to prevent adverse selection?.
Answer: Insurability standards
◍ Permanent partial.
Answer: You lost a limb, and you may return to work but you will not be
able to perform all job duties.
◍ What are endorsement?.
Answer: The modifications (adding or taking away) from the policy.
◍ What is the characteristics of insurable risk?.
Answer: A low probability of a loss occurringLess than catastrophic
resultsLost must be measurableThe loss must be significantThe loss must be
accidental and unintended
◍ What are supplementary payments?.
Answer: In additional to the limits of liability.
◍ Under the NC motor vehicle reinsurance facility ceded business may not be
terminated unless.
Answer: Premium payments have not been madeThe named insurer moved
out of the state
◍ Material Misrepresentation.
Answer: Knowing the truth about something upfront but still lying about it.
◍ How long is a disclosure of authorization form good for?.
Answer: 12 months max effective time
◍ The coverage limit for trees, shrubs and plants under homeowners is?.
Answer: $500 up to 5% of coverage A. Wind losses/damage not covered.
◍ Risk Transference.
Answer: Transfer of risk to an insurance company.
, ◍ What is consideration?.
Answer: The exchange of something of value by both parties
◍ Identification of parties involved on the loss report should only include?.
Answer: The names and addresses of:The parties involvedAnyone
injuredWitnesses
◍ Pro-Rata.
Answer: Insurance company must return any advanced unused premium
paid by the policy owner if the insurance company terminates the contract
before policy ends.
◍ Domestic Insurers.
Answer: organized under the laws of the same state in which they are
domiciled.
◍ What is listed under the Declarations Page?.
Answer: First page of the policy which includes the description of who or
what is insured, the amount of insurance, the name of the insured, term of
the policy, and premium amount
◍ When is SFP suspended?.
Answer: if a property is vacant or unoccupied for 60 days.
◍ Coverage Part A through F of a PAP.
Answer: A. LiabilityB. Medical PaymentsC. UM/UIMD. Physical
DamageE. Insured DutiesF. General Provisions
◍ If a claimant calls and speaks with an adjuster, the claimant states they have
an attorney on the phone what should they do?.
Answer: The adjuster can no longer speak with the claimant or ask to
include the attorney. They must stop the conversation and only speak with
the attorney going forward.
◍ In NC the maximum time between renewal periods is how many years?.
Answer: 7 years
◍ All disputes concerning workers compensation issues are referred to.
QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◍ What is the 4th thing the "write you own program will allow?.
Answer: Invest the rest of the profit to provide funds to pay claims.
◍ Indirect Loss is a?.
Answer: That is not a direct result of a covered peril. Ex. Loss of business
earnings due to property damage from a covered peril that prevents a
business from operating is an indirect loss.
◍ What are the min limits of liability for NC?.
Answer: 30/60/25
◍ Proposed rates with the NC Rate bureau may be used in a:.
Answer: Separate escrow account
◍ Res Gestae.
Answer: Excited utterance
◍ Insurance Services Office.
Answer: Calculates rates and creates policy forms such as homeowners and
auto for property and casualty insurers.
◍ Direct Loss is a?.
Answer: Property loss by an unbroken chain of events from covered peril.
◍ Medical payments on a PAP are ineligible for payments on?.
Answer: Motorcycles
◍ Res Ispa Loquitur.
Answer: The thing that speaks for itself
,◍ Risk Avoidance.
Answer: Ensures that an individual or business does not get involved in an
activity leading to a potential financial loss.
◍ Supplementary payments n a CGL will pay up to :.
Answer: $250 per day for earnings lost by the named insured.
◍ What are the 3 ways a CGL can pay claims?.
Answer: Can pay as primaryCan pay in excessCan pay equally with the
other insurer until the claim is paid or the limit of the policy is reached.
◍ What is the single limit for NC?.
Answer: $85,000
◍ Liability coverages for motor boats are for.
Answer: boats not exceeding 50 HP
◍ A domestic insurer is.
Answer: In state
◍ The umbrella policy pays on.
Answer: An excess basis with the underlying policy being the primary
policy without a deductible.
◍ Under the post insurance guaranty association a covered claim is defined
as?.
Answer: A portion of a claim in excess of $50 but less than $300,000 except
for workers compensation claims. Is also not in excess of the face amount
on the policy
◍ Coverage A for building and personal property cover?.
Answer: Buildings
◍ The open peril coverage on preservation of property is covered up to how
many day?.
Answer: 30 days
◍ What are the extensions of coverage under the building and personal
property coverage form?.
, Answer: Newly acquired property covered up to 30 daysValuable records
and papers (limited to 2500 at each described location)Business property
temporarily located off premises other than stock, which is covered up to
$10,000.
◍ What is the 2nd way to prevent adverse selection?.
Answer: Insurability standards
◍ Permanent partial.
Answer: You lost a limb, and you may return to work but you will not be
able to perform all job duties.
◍ What are endorsement?.
Answer: The modifications (adding or taking away) from the policy.
◍ What is the characteristics of insurable risk?.
Answer: A low probability of a loss occurringLess than catastrophic
resultsLost must be measurableThe loss must be significantThe loss must be
accidental and unintended
◍ What are supplementary payments?.
Answer: In additional to the limits of liability.
◍ Under the NC motor vehicle reinsurance facility ceded business may not be
terminated unless.
Answer: Premium payments have not been madeThe named insurer moved
out of the state
◍ Material Misrepresentation.
Answer: Knowing the truth about something upfront but still lying about it.
◍ How long is a disclosure of authorization form good for?.
Answer: 12 months max effective time
◍ The coverage limit for trees, shrubs and plants under homeowners is?.
Answer: $500 up to 5% of coverage A. Wind losses/damage not covered.
◍ Risk Transference.
Answer: Transfer of risk to an insurance company.
, ◍ What is consideration?.
Answer: The exchange of something of value by both parties
◍ Identification of parties involved on the loss report should only include?.
Answer: The names and addresses of:The parties involvedAnyone
injuredWitnesses
◍ Pro-Rata.
Answer: Insurance company must return any advanced unused premium
paid by the policy owner if the insurance company terminates the contract
before policy ends.
◍ Domestic Insurers.
Answer: organized under the laws of the same state in which they are
domiciled.
◍ What is listed under the Declarations Page?.
Answer: First page of the policy which includes the description of who or
what is insured, the amount of insurance, the name of the insured, term of
the policy, and premium amount
◍ When is SFP suspended?.
Answer: if a property is vacant or unoccupied for 60 days.
◍ Coverage Part A through F of a PAP.
Answer: A. LiabilityB. Medical PaymentsC. UM/UIMD. Physical
DamageE. Insured DutiesF. General Provisions
◍ If a claimant calls and speaks with an adjuster, the claimant states they have
an attorney on the phone what should they do?.
Answer: The adjuster can no longer speak with the claimant or ask to
include the attorney. They must stop the conversation and only speak with
the attorney going forward.
◍ In NC the maximum time between renewal periods is how many years?.
Answer: 7 years
◍ All disputes concerning workers compensation issues are referred to.
