North Carolina Pearson VUE All Lines Adjuster 2026/2027 | North Carolina
Insurance Adjuster License Exam Study Guide & Practice Questions | Pearson VUE
NC All Lines Adjuster Exam Prep, North Carolina Department of Insurance Adjuster
Licensing, Property & Casualty Claims, Insurance Policy Provisions, Claims
Handling, Adjuster Ethics, Unfair Claims Practices, Property Damage, Casualty
Claims, Liability, Homeowners, Dwelling, Commercial Insurance, Auto Insurance,
Workers’ Compensation, Insurance Law & Regulations, State-Specific Rules &
Detailed Rationales
Question 1: Under North Carolina General Statute § 58-33-10, the
term "adjuster" specifically excludes claims arising under which
type of insurance contract?
A. Commercial general liability policies
B. Personal automobile policies
C. Life and annuity contracts
D. Workers' compensation policies
CORRECT ANSWER: C. Life and annuity contracts
Rationale: North Carolina General Statute § 58-33-10 defines an adjuster as
any person who, for compensation, investigates or reports to their principal
regarding claims arising under insurance contracts, explicitly excluding life
and annuity contracts from this definition. This exclusion recognizes that
life insurance claims involve different principles and processes than
property and casualty claims.
Question 2: What is the maximum fine per violation for acting as an
unlicensed adjuster in North Carolina?
A. $1,000 per violation
B. $2,500 per violation
C. $5,000 per violation
D. $10,000 per violation
CORRECT ANSWER: C. $5,000 per violation
Rationale: North Carolina law enforces penalties to maintain
professionalism and protect the public. Acting as or holding oneself out as
an adjuster without a proper license carries a maximum fine of $5,000 per
violation, in addition to other potential penalties such as cease and desist
orders.
,Question 3: Under North Carolina's learner's permit provision for
adjusters (NCGS § 58-33-70), what is the maximum validity period
of a learner's permit?
A. 30 days
B. 60 days
C. 90 days
D. 180 days
CORRECT ANSWER: C. 90 days
Rationale: North Carolina General Statute § 58-33-70(c) allows the
Commissioner to issue a 90-day learner's permit to an applicant who has
filed an application and a required employer's certificate. The permittee
must operate under the instruction and supervision of a licensed adjuster,
and only one such permit can be issued per individual.
Question 4: For property insurance in North Carolina, insurable
interest must exist at which point(s) in time?
A. Only at the time of policy application
B. Only at the time of loss
C. At both the time the policy is issued and at the time of loss
D. At any point during the policy period
CORRECT ANSWER: C. At both the time the policy is issued and at
the time of loss
Rationale: For property and casualty insurance, insurable interest must exist
at both the time the policy is issued and at the time of the loss. This
requirement prevents individuals from insuring property they do not own
and then profiting from its destruction. For life insurance, interest need only
exist at inception.
Question 5: Which North Carolina statute defines unfair methods of
competition and unfair or deceptive acts or practices in the
insurance business?
A. N.C. § 58-33-70
B. N.C. § 58-63-15
C. N.C. § 97-200
D. N.C. § 58-71-70
CORRECT ANSWER: B. N.C. § 58-63-15
,Rationale: N.C. § 58-63-15 enumerates specific acts that constitute unfair
methods of competition and unfair or deceptive acts or practices in the
business of insurance, including unfair claims settlement practices. This
statute is essential for adjusters to understand their legal obligations when
handling claims.
Question 6: A "public adjuster" in North Carolina is best defined as:
A. An adjuster employed by the state to mediate claims disputes
B. An adjuster hired by the policyholder to assist in preparing, presenting,
and settling a claim
C. An adjuster who works exclusively for a self-insured employer
D. An adjuster who only handles automobile claims
CORRECT ANSWER: B. An adjuster hired by the policyholder to
assist in preparing, presenting, and settling a claim
Rationale: A public adjuster works for the insured, not the insurance
company. They are licensed by the North Carolina Department of
Insurance to represent the policyholder's interests in the claim process and
are required to be bonded. Public adjusters must serve with objectivity and
complete loyalty to their client alone.
Question 7: What is the minimum bond amount required for
resident individual public adjusters in North Carolina?
A. $5,000
B. $10,000
C. $20,000
D. $50,000
CORRECT ANSWER: C. $20,000
Rationale: North Carolina requires resident individual public adjusters to
post a $20,000 surety bond or an irrevocable letter of credit as proof of
financial responsibility, in addition to passing the state examination and
submitting fingerprints for a background check.
Question 8: A "company adjuster" (also known as a staff adjuster)
is:
A. An independent contractor who works for multiple insurance companies
B. A salaried employee of a single insurance company who adjusts claims
for that insurer
, C. A public official who investigates claims on behalf of the state
D. A retired adjuster who consults for law firms
CORRECT ANSWER: B. A salaried employee of a single insurance
company who adjusts claims for that insurer
Rationale: A company adjuster, also called a staff adjuster, is a direct
employee of a specific insurance company. They handle claims exclusively
for that employer and are often the primary point of contact for
policyholders during the claims process. Their primary loyalty is to the
insurance company that employs them.
Question 9: An "independent adjuster" differs from a staff adjuster
in that the independent adjuster:
A. Works for the state government
B. Is employed directly by the policyholder
C. Works as a contractor for multiple insurance companies rather than
being an employee of a single insurer
D. Does not require a license in North Carolina
CORRECT ANSWER: C. Works as a contractor for multiple
insurance companies rather than being an employee of a single
insurer
Rationale: Independent adjusters are not employees of a single insurance
company. Instead, they contract with multiple insurers to handle claims as
needed. They must still be licensed by the NCDOI if they are working on
behalf of insurers.
Question 10: Which type of adjuster would be called in after a
major hurricane to handle the large volume of claims in a short
period?
A. Public Adjuster
B. Independent Adjuster
C. Catastrophe (CAT) Adjuster
D. Self-insurer Adjuster
CORRECT ANSWER: C. Catastrophe (CAT) Adjuster
Rationale: Catastrophe adjusters are temporarily licensed by the insurance
commissioner to handle claims during catastrophes or emergencies that
Insurance Adjuster License Exam Study Guide & Practice Questions | Pearson VUE
NC All Lines Adjuster Exam Prep, North Carolina Department of Insurance Adjuster
Licensing, Property & Casualty Claims, Insurance Policy Provisions, Claims
Handling, Adjuster Ethics, Unfair Claims Practices, Property Damage, Casualty
Claims, Liability, Homeowners, Dwelling, Commercial Insurance, Auto Insurance,
Workers’ Compensation, Insurance Law & Regulations, State-Specific Rules &
Detailed Rationales
Question 1: Under North Carolina General Statute § 58-33-10, the
term "adjuster" specifically excludes claims arising under which
type of insurance contract?
A. Commercial general liability policies
B. Personal automobile policies
C. Life and annuity contracts
D. Workers' compensation policies
CORRECT ANSWER: C. Life and annuity contracts
Rationale: North Carolina General Statute § 58-33-10 defines an adjuster as
any person who, for compensation, investigates or reports to their principal
regarding claims arising under insurance contracts, explicitly excluding life
and annuity contracts from this definition. This exclusion recognizes that
life insurance claims involve different principles and processes than
property and casualty claims.
Question 2: What is the maximum fine per violation for acting as an
unlicensed adjuster in North Carolina?
A. $1,000 per violation
B. $2,500 per violation
C. $5,000 per violation
D. $10,000 per violation
CORRECT ANSWER: C. $5,000 per violation
Rationale: North Carolina law enforces penalties to maintain
professionalism and protect the public. Acting as or holding oneself out as
an adjuster without a proper license carries a maximum fine of $5,000 per
violation, in addition to other potential penalties such as cease and desist
orders.
,Question 3: Under North Carolina's learner's permit provision for
adjusters (NCGS § 58-33-70), what is the maximum validity period
of a learner's permit?
A. 30 days
B. 60 days
C. 90 days
D. 180 days
CORRECT ANSWER: C. 90 days
Rationale: North Carolina General Statute § 58-33-70(c) allows the
Commissioner to issue a 90-day learner's permit to an applicant who has
filed an application and a required employer's certificate. The permittee
must operate under the instruction and supervision of a licensed adjuster,
and only one such permit can be issued per individual.
Question 4: For property insurance in North Carolina, insurable
interest must exist at which point(s) in time?
A. Only at the time of policy application
B. Only at the time of loss
C. At both the time the policy is issued and at the time of loss
D. At any point during the policy period
CORRECT ANSWER: C. At both the time the policy is issued and at
the time of loss
Rationale: For property and casualty insurance, insurable interest must exist
at both the time the policy is issued and at the time of the loss. This
requirement prevents individuals from insuring property they do not own
and then profiting from its destruction. For life insurance, interest need only
exist at inception.
Question 5: Which North Carolina statute defines unfair methods of
competition and unfair or deceptive acts or practices in the
insurance business?
A. N.C. § 58-33-70
B. N.C. § 58-63-15
C. N.C. § 97-200
D. N.C. § 58-71-70
CORRECT ANSWER: B. N.C. § 58-63-15
,Rationale: N.C. § 58-63-15 enumerates specific acts that constitute unfair
methods of competition and unfair or deceptive acts or practices in the
business of insurance, including unfair claims settlement practices. This
statute is essential for adjusters to understand their legal obligations when
handling claims.
Question 6: A "public adjuster" in North Carolina is best defined as:
A. An adjuster employed by the state to mediate claims disputes
B. An adjuster hired by the policyholder to assist in preparing, presenting,
and settling a claim
C. An adjuster who works exclusively for a self-insured employer
D. An adjuster who only handles automobile claims
CORRECT ANSWER: B. An adjuster hired by the policyholder to
assist in preparing, presenting, and settling a claim
Rationale: A public adjuster works for the insured, not the insurance
company. They are licensed by the North Carolina Department of
Insurance to represent the policyholder's interests in the claim process and
are required to be bonded. Public adjusters must serve with objectivity and
complete loyalty to their client alone.
Question 7: What is the minimum bond amount required for
resident individual public adjusters in North Carolina?
A. $5,000
B. $10,000
C. $20,000
D. $50,000
CORRECT ANSWER: C. $20,000
Rationale: North Carolina requires resident individual public adjusters to
post a $20,000 surety bond or an irrevocable letter of credit as proof of
financial responsibility, in addition to passing the state examination and
submitting fingerprints for a background check.
Question 8: A "company adjuster" (also known as a staff adjuster)
is:
A. An independent contractor who works for multiple insurance companies
B. A salaried employee of a single insurance company who adjusts claims
for that insurer
, C. A public official who investigates claims on behalf of the state
D. A retired adjuster who consults for law firms
CORRECT ANSWER: B. A salaried employee of a single insurance
company who adjusts claims for that insurer
Rationale: A company adjuster, also called a staff adjuster, is a direct
employee of a specific insurance company. They handle claims exclusively
for that employer and are often the primary point of contact for
policyholders during the claims process. Their primary loyalty is to the
insurance company that employs them.
Question 9: An "independent adjuster" differs from a staff adjuster
in that the independent adjuster:
A. Works for the state government
B. Is employed directly by the policyholder
C. Works as a contractor for multiple insurance companies rather than
being an employee of a single insurer
D. Does not require a license in North Carolina
CORRECT ANSWER: C. Works as a contractor for multiple
insurance companies rather than being an employee of a single
insurer
Rationale: Independent adjusters are not employees of a single insurance
company. Instead, they contract with multiple insurers to handle claims as
needed. They must still be licensed by the NCDOI if they are working on
behalf of insurers.
Question 10: Which type of adjuster would be called in after a
major hurricane to handle the large volume of claims in a short
period?
A. Public Adjuster
B. Independent Adjuster
C. Catastrophe (CAT) Adjuster
D. Self-insurer Adjuster
CORRECT ANSWER: C. Catastrophe (CAT) Adjuster
Rationale: Catastrophe adjusters are temporarily licensed by the insurance
commissioner to handle claims during catastrophes or emergencies that
