CLAIMS ADJUSTER EXAM STUDY GUIDE | QUESTIONS &
ANSWERS | NEW 2026/2027 UPDATE | GRADED A+| 100% CORRECT
(VERIFIED SOLUTIONS)
Liability Insurance PAP (Part A) -
ANSWER
Pays all the sums and insured must legally pay as damage due to BI/PD caused by an accident and
resulting from the ownership, maintenance or use of a covered auto.
Coverage Part A through F of a PAP -
ANSWER
A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
Certificate of Insurance (COI) -
ANSWER
A document that proves the existence of insurance coverage
Occurrence -
ANSWER
Something that continue to happen and may cause injury later on.
Accident -
ANSWER
A sudden unforseen and unintended one time event
Assumption of risk -
ANSWER
,An individual who is aware of the potential risk involved and chose to expose themselves to it.
Comparative negligence -
ANSWER
Measures the amount of negligence contributed to each party. The injured party will not cover
damages equal to the percentage of negligence they contribute.
Contributory Negligence -
ANSWER
If an insured party contributed to their injury in anyway due to their own negligence, we will not pay
anything.
What state is a contributory state? -
ANSWER
North Carolina
Negligence -
ANSWER
Failure to do (or not do) what a reasonable prudent person would or would not have done in a
similar instance.
Temporary Substitute Automobile -
ANSWER
Not owned by the named insured but used temporarily as a substitute for the owned auto that is
not currently being used.
What is an example of a Temporary substitute Automobile? -
ANSWER
A dealership loans an insured a vehicle to drive while their car is getting fixed.
Non Owned Automobile -
ANSWER
Not owned by the named insured or any relative.
,What is an example of an Non Owned Automobile? -
ANSWER
An insured borrows a neighbors car.
If an additional vehicle is not reported to the insurer within 30 days: -
ANSWER
No coverage will apply to the added vehicle.
If a vehicle is added to an existing policy (In addition to): -
ANSWER
It will have the broadest coverage if insured within 30 days of becoming the owner.
If a replacement vehicle is not reported within 30 days: -
ANSWER
Part D (Comprehensive and Collision Coverage) will not apply to the replacement vehicle.
A new vehicle that replaces another vehicle will: -
ANSWER
Have the same coverages as the old vehicle if the named insured request to insure it within 30 days
of becoming the owners.
Insured -
ANSWER
Any blood relative by marriage, adoption, wards, foster children, living in the same home, including
children away at college. Also, any person using someones car with their permission.
Named insured -
ANSWER
Listed on the declarations page. Included a spouse wether they are named in the policy or not,
provided they live in the same home.
, 1st Coverage for watercraft or yacht are: -
ANSWER
Hull insurance for damage to the insured boat itself
2nd Coverage for watercraft or yacht are: -
ANSWER
Protection and indemnity liability coverage for BI and PD exposures for damage to other people or
other peoples boats.
What doesn't watercraft or yacht coverage provide? -
ANSWER
Coverage for boats used for hire, charger, or for transporting people for a fee.
How many days removal coverage is provided on the National Flood Insurance Program? -
ANSWER
45 days
Elevation certificates -
ANSWER
Required on dwellings that are written in the regular program in certain flood zones in order to
properly rate the policy.
Flood insurance policies become effective after: -
ANSWER
30 days after receipt of the coverage application and the premium payment.
The general property form on flood insurance is used to: -
ANSWER
Insure larger residential structures and non residential buildings.
The dwellings form on a flood insurance plan is: -
ANSWER
ANSWERS | NEW 2026/2027 UPDATE | GRADED A+| 100% CORRECT
(VERIFIED SOLUTIONS)
Liability Insurance PAP (Part A) -
ANSWER
Pays all the sums and insured must legally pay as damage due to BI/PD caused by an accident and
resulting from the ownership, maintenance or use of a covered auto.
Coverage Part A through F of a PAP -
ANSWER
A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
Certificate of Insurance (COI) -
ANSWER
A document that proves the existence of insurance coverage
Occurrence -
ANSWER
Something that continue to happen and may cause injury later on.
Accident -
ANSWER
A sudden unforseen and unintended one time event
Assumption of risk -
ANSWER
,An individual who is aware of the potential risk involved and chose to expose themselves to it.
Comparative negligence -
ANSWER
Measures the amount of negligence contributed to each party. The injured party will not cover
damages equal to the percentage of negligence they contribute.
Contributory Negligence -
ANSWER
If an insured party contributed to their injury in anyway due to their own negligence, we will not pay
anything.
What state is a contributory state? -
ANSWER
North Carolina
Negligence -
ANSWER
Failure to do (or not do) what a reasonable prudent person would or would not have done in a
similar instance.
Temporary Substitute Automobile -
ANSWER
Not owned by the named insured but used temporarily as a substitute for the owned auto that is
not currently being used.
What is an example of a Temporary substitute Automobile? -
ANSWER
A dealership loans an insured a vehicle to drive while their car is getting fixed.
Non Owned Automobile -
ANSWER
Not owned by the named insured or any relative.
,What is an example of an Non Owned Automobile? -
ANSWER
An insured borrows a neighbors car.
If an additional vehicle is not reported to the insurer within 30 days: -
ANSWER
No coverage will apply to the added vehicle.
If a vehicle is added to an existing policy (In addition to): -
ANSWER
It will have the broadest coverage if insured within 30 days of becoming the owner.
If a replacement vehicle is not reported within 30 days: -
ANSWER
Part D (Comprehensive and Collision Coverage) will not apply to the replacement vehicle.
A new vehicle that replaces another vehicle will: -
ANSWER
Have the same coverages as the old vehicle if the named insured request to insure it within 30 days
of becoming the owners.
Insured -
ANSWER
Any blood relative by marriage, adoption, wards, foster children, living in the same home, including
children away at college. Also, any person using someones car with their permission.
Named insured -
ANSWER
Listed on the declarations page. Included a spouse wether they are named in the policy or not,
provided they live in the same home.
, 1st Coverage for watercraft or yacht are: -
ANSWER
Hull insurance for damage to the insured boat itself
2nd Coverage for watercraft or yacht are: -
ANSWER
Protection and indemnity liability coverage for BI and PD exposures for damage to other people or
other peoples boats.
What doesn't watercraft or yacht coverage provide? -
ANSWER
Coverage for boats used for hire, charger, or for transporting people for a fee.
How many days removal coverage is provided on the National Flood Insurance Program? -
ANSWER
45 days
Elevation certificates -
ANSWER
Required on dwellings that are written in the regular program in certain flood zones in order to
properly rate the policy.
Flood insurance policies become effective after: -
ANSWER
30 days after receipt of the coverage application and the premium payment.
The general property form on flood insurance is used to: -
ANSWER
Insure larger residential structures and non residential buildings.
The dwellings form on a flood insurance plan is: -
ANSWER
