North Carolina Adjuster License Exam Prep Document |
2026/2027 Edition | 150 Verified Questions - 90 Questions
with Answers
NC Adjuster License Exam 2026-90 QUESTIONS AND ANSWERS ALREADY GRADED A+. 100% Verified
Solutions | Updated Per Latest Guidelines | Graded A+
This comprehensive study guide is meticulously crafted for candidates preparing for the North
Carolina Adjuster License Exam. It contains 150 verified questions that reflect the latest exam
guidelines, ensuring you are fully equipped to pass on your first attempt. Each question is accompanied
by a detailed rationale, providing a deep understanding of the material. The content is organized to
cover all essential domains, from insurance fundamentals to North Carolina-specific regulations.
Key Features:
Insurance Fundamentals and Principles
Types of Insurance Policies and Coverages
Property and Casualty Insurance Basics
Liability Insurance and Claims
Auto Insurance and Coverage
Homeowners and Commercial Property Insurance
Workers' Compensation and Employer Liability
Marine, Farm, and Specialized Coverages
Insurance Law and Contract Law
Ethics and Professional Responsibility
Claims Handling and Investigation
Loss Assessment and Settlement
North Carolina Insurance Regulations
North Carolina Administrative Code and Statutes
Licensing Requirements and Continuing Education
Consumer Protection and Fair Practices
Risk Management and Loss Prevention
Exam Strategies and Test-Taking Tips
Updates for 2026:
- Updated to reflect the latest 2026-2027 North Carolina Department of Insurance guidelines
- Incorporated recent legislative changes affecting adjuster licensing and claims practices
- Revised answer rationales to align with current legal interpretations and industry standards
- Enhanced coverage of emerging trends in property and casualty insurance
- Added new questions on digital claims processing and data privacy considerations
Abstract:
This exam preparation document is an authoritative resource for individuals seeking to obtain the North Carolina
Adjuster License. It synthesizes the core knowledge areas required by the state, including insurance principles,
policy structures, and the regulatory framework specific to North Carolina. The 150 questions are designed to
mirror the format and difficulty of the actual exam, with each answer thoroughly explained to reinforce learning.
The guide emphasizes practical application, ethical considerations, and compliance with state laws, ensuring
candidates are not only test-ready but also professionally competent. By systematically covering all content areas,
Page 1
,this document serves as a complete study tool, enabling candidates to identify strengths and weaknesses and focus
their preparation effectively. The inclusion of updated guidelines and recent regulatory changes ensures that the
material is current and relevant for the 2026-2027 examination cycle.
Keywords:
NC Adjuster License, Exam Prep, Verified Questions, Insurance Claims, North Carolina Regulations, Property &
Casualty, Licensing Exam, 2026-2027
Answer Format:
Each question is presented in multiple-choice format with four options. The correct answer is clearly indicated,
followed by a comprehensive rationale explaining why it is correct and why the other options are incorrect. This
format facilitates active learning and helps candidates understand the underlying concepts.
Compliance Checklist:
Aligns with the latest North Carolina Department of Insurance exam content outline
Includes questions on all mandatory topics and subtopics
Provides accurate and up-to-date legal and regulatory references
Offers clear and concise rationales for each answer
Suitable for self-study and comprehensive review
Content Area Overview:
Content Area Questions Key Topics Weight
Insurance Fundamentals 1-20 Risk, peril, hazard, insurance principles, 13%
types of insurers
Policy Structure and Legal 21-40 Declarations, insuring agreement, 13%
Concepts conditions, exclusions, contract law
Property Insurance 41-60 Dwelling, homeowners, commercial 13%
property, business income, inland marine
Liability Insurance 61-80 General liability, professional liability, 13%
product liability, umbrella policies
Automobile Insurance 81-100 Personal auto, commercial auto, no-fault, 13%
uninsured/underinsured motorist
Workers' Compensation and 101-120 Workers' comp, employer liability, crime, 13%
Other Coverages fidelity, surety bonds
Claims Handling and Ethics 121-135 Investigation, documentation, negotiation, 10%
settlement, fair claims practices
North Carolina Laws and 136-150 NC DOI, licensing, adjuster duties, 12%
Regulations consumer protections, continuing education
Page 2
,Q1. A North Carolina adjuster is evaluating a commercial property claim where the
insured's policy includes an ordinance or law endorsement. The building sustained
damage to its roof, and the local building code requires the entire roof to be replaced
due to upgraded windstorm standards. The adjuster must determine coverage for the
undamaged portion of the roof. Which principle governs this determination?
A. The law and ordinance endorsement only covers the increased cost of
reconstruction, not the undamaged portion.
B. The undamaged portion is covered only if the building is a total loss.
C. The undamaged portion is covered under the 'demolition cost' provision of the
endorsement.
D. The undamaged portion is excluded because it was not directly damaged by the
peril.
Correct Answer: A. The law and ordinance endorsement only covers the increased
cost of reconstruction, not the undamaged portion.
Rationale: The ordinance or law endorsement provides coverage for loss caused by
enforcement of building codes, including the increased cost to repair or replace the
damaged portion, but it does not cover the cost to repair or replace undamaged portions
unless specifically endorsed. The endorsement typically has separate limits for demolition
cost and increased cost of construction, and the undamaged portion is not covered under
either unless the ordinance requires demolition of the entire building.
Why Wrong:
B - Total loss is not the trigger; coverage depends on the endorsement's specific
provisions and the ordinance's requirements.
C - Demolition cost covers the cost to tear down and clear the undamaged portions,
but not the cost to rebuild them.
D - Exclusion of undamaged portions is not automatic; the endorsement may cover
them if required by ordinance, but only under specific conditions.
Reference: North Carolina Department of Insurance, Adjuster Licensing Manual,
Property Coverage, Ordinance or Law Endorsement
Q2. An insured has a personal auto policy in North Carolina with liability limits of
30/60/25 and uninsured motorist (UM) coverage. The insured is struck by a
hit-and-run driver and suffers $50,000 in bodily injury damages. The insured's UM
coverage limit is $25,000 per person. The insured also has health insurance that paid
$20,000 of medical bills. What is the maximum the insured can recover from UM
coverage, and how does subrogation affect the health insurer's reimbursement?
A. The insured can recover $25,000 from UM, and the health insurer has no right to
subrogation against the UM carrier.
B. The insured can recover $50,000 from UM, and the health insurer can assert a lien
on the recovery.
Page 3
, C. The insured can recover $25,000 from UM, and the health insurer may assert a
subrogation interest but only after the insured is fully compensated.
D. The insured can recover $30,000 from UM (the per-person liability limit), and the
health insurer's subrogation is barred by the made-whole doctrine.
Correct Answer: C. The insured can recover $25,000 from UM, and the health
insurer may assert a subrogation interest but only after the insured is fully
compensated.
Rationale: UM coverage limits are typically the same as the liability limits, but here the
UM limit is $25,000 per person, so the maximum recovery is $25,000. Under the
made-whole doctrine, a health insurer's subrogation right only attaches after the insured
has been fully compensated for their losses. Since the insured's damages ($50,000) exceed
the UM recovery, the health insurer cannot recover until the insured is made whole.
Why Wrong:
A - The health insurer does have subrogation rights, but they are subordinate to the
insured's right to full compensation.
B - The UM limit is $25,000, not $50,000, and the health insurer's right is not
absolute.
D - The UM limit is $25,000, not $30,000, and the made-whole doctrine does not bar
subrogation entirely; it only postpones it.
Reference: North Carolina General Statutes § 20-279.21, Uninsured Motorist Coverage;
Subrogation Principles
Q3. A North Carolina adjuster is handling a workers' compensation claim where the
injured employee has a compensable injury and is receiving temporary total disability
(TTD) benefits. The employer's carrier requests an independent medical examination
(IME) to determine if the employee has reached maximum medical improvement
(MMI). Under North Carolina law, what is the adjuster's obligation regarding the
IME?
A. The adjuster must notify the employee's attorney and obtain a court order before
scheduling the IME.
B. The adjuster may schedule the IME at a reasonable time and place, and the
employee must attend or risk suspension of benefits.
C. The adjuster must first obtain the employee's written consent before scheduling the
IME.
D. The adjuster may only schedule the IME if the employee has been off work for more
than 90 days.
Correct Answer: B. The adjuster may schedule the IME at a reasonable time and
place, and the employee must attend or risk suspension of benefits.
Page 4
2026/2027 Edition | 150 Verified Questions - 90 Questions
with Answers
NC Adjuster License Exam 2026-90 QUESTIONS AND ANSWERS ALREADY GRADED A+. 100% Verified
Solutions | Updated Per Latest Guidelines | Graded A+
This comprehensive study guide is meticulously crafted for candidates preparing for the North
Carolina Adjuster License Exam. It contains 150 verified questions that reflect the latest exam
guidelines, ensuring you are fully equipped to pass on your first attempt. Each question is accompanied
by a detailed rationale, providing a deep understanding of the material. The content is organized to
cover all essential domains, from insurance fundamentals to North Carolina-specific regulations.
Key Features:
Insurance Fundamentals and Principles
Types of Insurance Policies and Coverages
Property and Casualty Insurance Basics
Liability Insurance and Claims
Auto Insurance and Coverage
Homeowners and Commercial Property Insurance
Workers' Compensation and Employer Liability
Marine, Farm, and Specialized Coverages
Insurance Law and Contract Law
Ethics and Professional Responsibility
Claims Handling and Investigation
Loss Assessment and Settlement
North Carolina Insurance Regulations
North Carolina Administrative Code and Statutes
Licensing Requirements and Continuing Education
Consumer Protection and Fair Practices
Risk Management and Loss Prevention
Exam Strategies and Test-Taking Tips
Updates for 2026:
- Updated to reflect the latest 2026-2027 North Carolina Department of Insurance guidelines
- Incorporated recent legislative changes affecting adjuster licensing and claims practices
- Revised answer rationales to align with current legal interpretations and industry standards
- Enhanced coverage of emerging trends in property and casualty insurance
- Added new questions on digital claims processing and data privacy considerations
Abstract:
This exam preparation document is an authoritative resource for individuals seeking to obtain the North Carolina
Adjuster License. It synthesizes the core knowledge areas required by the state, including insurance principles,
policy structures, and the regulatory framework specific to North Carolina. The 150 questions are designed to
mirror the format and difficulty of the actual exam, with each answer thoroughly explained to reinforce learning.
The guide emphasizes practical application, ethical considerations, and compliance with state laws, ensuring
candidates are not only test-ready but also professionally competent. By systematically covering all content areas,
Page 1
,this document serves as a complete study tool, enabling candidates to identify strengths and weaknesses and focus
their preparation effectively. The inclusion of updated guidelines and recent regulatory changes ensures that the
material is current and relevant for the 2026-2027 examination cycle.
Keywords:
NC Adjuster License, Exam Prep, Verified Questions, Insurance Claims, North Carolina Regulations, Property &
Casualty, Licensing Exam, 2026-2027
Answer Format:
Each question is presented in multiple-choice format with four options. The correct answer is clearly indicated,
followed by a comprehensive rationale explaining why it is correct and why the other options are incorrect. This
format facilitates active learning and helps candidates understand the underlying concepts.
Compliance Checklist:
Aligns with the latest North Carolina Department of Insurance exam content outline
Includes questions on all mandatory topics and subtopics
Provides accurate and up-to-date legal and regulatory references
Offers clear and concise rationales for each answer
Suitable for self-study and comprehensive review
Content Area Overview:
Content Area Questions Key Topics Weight
Insurance Fundamentals 1-20 Risk, peril, hazard, insurance principles, 13%
types of insurers
Policy Structure and Legal 21-40 Declarations, insuring agreement, 13%
Concepts conditions, exclusions, contract law
Property Insurance 41-60 Dwelling, homeowners, commercial 13%
property, business income, inland marine
Liability Insurance 61-80 General liability, professional liability, 13%
product liability, umbrella policies
Automobile Insurance 81-100 Personal auto, commercial auto, no-fault, 13%
uninsured/underinsured motorist
Workers' Compensation and 101-120 Workers' comp, employer liability, crime, 13%
Other Coverages fidelity, surety bonds
Claims Handling and Ethics 121-135 Investigation, documentation, negotiation, 10%
settlement, fair claims practices
North Carolina Laws and 136-150 NC DOI, licensing, adjuster duties, 12%
Regulations consumer protections, continuing education
Page 2
,Q1. A North Carolina adjuster is evaluating a commercial property claim where the
insured's policy includes an ordinance or law endorsement. The building sustained
damage to its roof, and the local building code requires the entire roof to be replaced
due to upgraded windstorm standards. The adjuster must determine coverage for the
undamaged portion of the roof. Which principle governs this determination?
A. The law and ordinance endorsement only covers the increased cost of
reconstruction, not the undamaged portion.
B. The undamaged portion is covered only if the building is a total loss.
C. The undamaged portion is covered under the 'demolition cost' provision of the
endorsement.
D. The undamaged portion is excluded because it was not directly damaged by the
peril.
Correct Answer: A. The law and ordinance endorsement only covers the increased
cost of reconstruction, not the undamaged portion.
Rationale: The ordinance or law endorsement provides coverage for loss caused by
enforcement of building codes, including the increased cost to repair or replace the
damaged portion, but it does not cover the cost to repair or replace undamaged portions
unless specifically endorsed. The endorsement typically has separate limits for demolition
cost and increased cost of construction, and the undamaged portion is not covered under
either unless the ordinance requires demolition of the entire building.
Why Wrong:
B - Total loss is not the trigger; coverage depends on the endorsement's specific
provisions and the ordinance's requirements.
C - Demolition cost covers the cost to tear down and clear the undamaged portions,
but not the cost to rebuild them.
D - Exclusion of undamaged portions is not automatic; the endorsement may cover
them if required by ordinance, but only under specific conditions.
Reference: North Carolina Department of Insurance, Adjuster Licensing Manual,
Property Coverage, Ordinance or Law Endorsement
Q2. An insured has a personal auto policy in North Carolina with liability limits of
30/60/25 and uninsured motorist (UM) coverage. The insured is struck by a
hit-and-run driver and suffers $50,000 in bodily injury damages. The insured's UM
coverage limit is $25,000 per person. The insured also has health insurance that paid
$20,000 of medical bills. What is the maximum the insured can recover from UM
coverage, and how does subrogation affect the health insurer's reimbursement?
A. The insured can recover $25,000 from UM, and the health insurer has no right to
subrogation against the UM carrier.
B. The insured can recover $50,000 from UM, and the health insurer can assert a lien
on the recovery.
Page 3
, C. The insured can recover $25,000 from UM, and the health insurer may assert a
subrogation interest but only after the insured is fully compensated.
D. The insured can recover $30,000 from UM (the per-person liability limit), and the
health insurer's subrogation is barred by the made-whole doctrine.
Correct Answer: C. The insured can recover $25,000 from UM, and the health
insurer may assert a subrogation interest but only after the insured is fully
compensated.
Rationale: UM coverage limits are typically the same as the liability limits, but here the
UM limit is $25,000 per person, so the maximum recovery is $25,000. Under the
made-whole doctrine, a health insurer's subrogation right only attaches after the insured
has been fully compensated for their losses. Since the insured's damages ($50,000) exceed
the UM recovery, the health insurer cannot recover until the insured is made whole.
Why Wrong:
A - The health insurer does have subrogation rights, but they are subordinate to the
insured's right to full compensation.
B - The UM limit is $25,000, not $50,000, and the health insurer's right is not
absolute.
D - The UM limit is $25,000, not $30,000, and the made-whole doctrine does not bar
subrogation entirely; it only postpones it.
Reference: North Carolina General Statutes § 20-279.21, Uninsured Motorist Coverage;
Subrogation Principles
Q3. A North Carolina adjuster is handling a workers' compensation claim where the
injured employee has a compensable injury and is receiving temporary total disability
(TTD) benefits. The employer's carrier requests an independent medical examination
(IME) to determine if the employee has reached maximum medical improvement
(MMI). Under North Carolina law, what is the adjuster's obligation regarding the
IME?
A. The adjuster must notify the employee's attorney and obtain a court order before
scheduling the IME.
B. The adjuster may schedule the IME at a reasonable time and place, and the
employee must attend or risk suspension of benefits.
C. The adjuster must first obtain the employee's written consent before scheduling the
IME.
D. The adjuster may only schedule the IME if the employee has been off work for more
than 90 days.
Correct Answer: B. The adjuster may schedule the IME at a reasonable time and
place, and the employee must attend or risk suspension of benefits.
Page 4
