NC Claims Adjuster Exam Study Guide: Guaranteed A+ Guide Solution

Liability Insurance PAP (Part A) (Ans- 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 (Ans- A. Liability B. Medical Payments C. UM/UIM D. Physical Damage E. Insured Duties F. General Provisions Certificate of Insurance (COI) (Ans- A document that proves the existence of insurance coverage Occurrence (Ans- Something that continue to happen and may cause injury later on. Accident (Ans- A sudden unforeseen and unintended one time event Assumption of risk (Ans- An individual who is aware of the potential risk involved and chose to expose themselves to it. Comparative negligence (Ans- 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 (Ans- 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? (Ans- North Carolina Negligence (Ans- Failure to do (or not do) what a reasonable prudent person would or would not have done in a similar instance. Temporary Substitute Automobile (Ans- 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? (Ans- A dealership loans an insured a vehicle to drive while their car is getting fixed. Non Owned Automobile (Ans- Not owned by the named insured or any relative. What is an example of an Non Owned Automobile? (Ans- An insured borrows a neighbor’s car. If an additional vehicle is not reported to the insurer within 30 days: (Ans- No coverage will apply to the added vehicle. If a vehicle is added to an existing policy (In addition to): (Ans- 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: (Ans- Part D (Comprehensive and Collision Coverage) will not apply to the replacement vehicle. A new vehicle that replaces another vehicle will: (Ans- Have the same coverages as the old vehicle if the named insured request to insure it within 30 days of becoming the owners. Insured (Ans- Any blood relative by marriage, adoption, wards, foster children, living in the same home, including children away at college. Also, any person using someone’s car with their permission. Named insured (Ans- Listed on the declarations page. Included a spouse whether they are named in the policy or not, provided they live in the same home. 1st Coverage for watercraft or yacht are: (Ans- Hull insurance for damage to the insured boat itself 2nd Coverage for watercraft or yacht are: (Ans- 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? (Ans- 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? (Ans- 45 days Elevation certificates (Ans- 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: (Ans- 30 days after receipt of the coverage application and the premium payment. The general property form on flood insurance is used to: (Ans- Insure larger residential structures and non residential buildings. The dwellings form on a flood insurance plan is: (Ans- Used to ensure residential property of no more than 4 units and the contents Flood insurance is available in 2 forms, what are they? (Ans- 1. Dwelling 2. General property The deductible for an emergency plan applies: (Ans- Separately to the building loss and contents if purchased on a per occurrence basis. How much is the deductible on an emergency plan? (Ans- $1,000 Deductibe The community becomes eligible for a regular plan: (Ans- When a community complied with flood control requirements and the extent of the flood plan has been mapped. What are the 1st definition included in a flood? (Ans- Overflow of inland or tidal water What is the 2nd definition included in a flood? (Ans- Unusual accumulation and run off of surface waters What is the 3rd definition included in a flood? (Ans- Mud flows or mudslides in normally dry land areas What is the 4th definition included in a flood? (Ans- Abnormal flood related erosion of shorelines What is a flood? (Ans- General and temporary conditions of partial or complete inundation of normally dry land areas. What is the 1st thing the "write your own" program will allow? (Ans- Private insurance companies to sell and service flood insurance in their own name. What is the 2nd thing the "write your own" program will allow? (Ans- Collect Premiums What is the 3rd thing the "write your own" program will allow? (Ans- Keep percentage of premiums to cover expenses and profit. What is the 4th thing the "write you own program will allow? (Ans- Invest the rest of the profit to provide funds to pay claims. What is the purpose of the National Flood Insurance Program? (Ans- The encourage communities to practice flood control and to restrict development in flood prone areas. What does the The Federal Insurance Administration (FIA) do? (Ans- Sets rates, coverage limits, and eligibility requirements for flood insurance through the National Flood Insurance Program. What does the Federal Emergency Management Agency (FEMA) Do? (Ans- Sets program standards for the National Flood Insurance Program. How many roomers and boarders can a dwelling policy insure? (Ans- Up to 5 roomers and boarders