NC adjuster Exam CORRECT ANSWERS REVISED 2023

NC adjuster Exam CORRECT ANSWERS REVISED 2023 Inception/Expiration Date - correct answersThe date on which coverage became effective or expired. Policies in North Carolina become effective and expire at 12:01am Occurrence Date - correct answersThe date on which the loss occurred Identification of Parties involve - correct answersThe loss report should include the names and addresses of the parties involved in the loss, the names and addresses of any injured person(s) and the names and addresses of any witness(s) Policy form /Number - correct answersIdentifies the type of coverage purchased (policy form) and the policy number for the particular policy purchased by the insured Description of the Loss - correct answersInformation concerning how, when and where the accident or loss happened is an essential element in any loss report Coverage - correct answersShows the type of coverage purchased as well as the limits of coverage purchased. Deductible (retention) - correct answersThat portion of any covered property claim that must be paid by the insured. Tort/Tort Feasor - correct answersA tort is a legal injury or a civil wrong to another that arises out of actions other than a breach of contract which a court will provide a remedy through allowing the injured party a monetary recover for damages. Elements of an Investigation - correct answersThe insured and the claims team need to work together to ensure they have secured all of the available evidence (surveillance videos, witnesses and their statements) as well as continue the ongoing investigation Adjusters, investigators index reports and witnesses can all be key pieces of the puzzle that may not be available, or there may not have been enough information to involve at the onset Statute of Limitations - correct answersEach state has its own statute of limitations laws. NC is three years Types of liability - correct answersContributory, Vicarious, and Strict Contributory Liability - correct answersIf a person was injured due to their own negligence (contributed to the accident), the injured party would not be entitled to collect any damages (money) from another party who supposedly caused the accident. (ex. person runs a red light and car hits them) Vicarious Liability - correct answersSomeone is held responsible for the actions or omissions of another person while performing their employment duties (ex. employee fails to mop up a spill and a customer falls) Strict Liability - correct answersLiability incurred for causing damage to life, limb, or property by a hazardous activity or a defective product. ( toy company sells doll that injured a child are responsible even though they did not manufacture the doll) Damages - correct answersSpecial, General, and Punitive Special (compensatory) - correct answersDamages are amounts paid to compensate the plaintiff for direct expenses such as: medical treatment, loss wages, and funeral expenses (Can be measured) General (compensatory) - correct answersDamages are paid for losses that CANNOT be specifically measured and itemized in order to compensate the plaintiff such as: pain and suffering, loss of arm or leg, vision, and physical disfigurement. Punitive (punish) damages - correct answersare awarded to the plaintiff in addition to compensatory damages when the defendant's conduct has been malicious. They are awarded to punish the defendant and to deter others from committing similar actions Actual Cash Value (ACV) - correct answersis replacement cost at the time of loss less any depreciation Stated Value (stated amount) - correct answersis the maximum amount of insurance. The policy will still pay the actual cash value at the time of loss. If ACV is less than the state amount the insurance company will pay you ACV. If ACV is greater, insurance company will pay stated amount (pays the least amount of the two) Reproductive Cost - correct answersThe cost of researching, replacing or restoring lost information, such as valuable papers or records, which have suffered loss or damage. Local market value - correct answersshall be determined by using either the local price of a comparable vehicle or if no comparable vehicle can be found, quotations from at least two qualified dealers within the local market area. Total loss - correct answersWhen a motor vehicle is damage in an amount which equals or exceeds 75% of the pre-accident actual cash value. Loss and claims payments shall be mailed or otherwise delivered within how many business days after a claim is settled? - correct answers10 days. Specific Coverage - correct answersCovers items on a scheduled property (ring) Open Perils - correct answersall direct losses are included unless are excluded in the policy (burden of proof is on the insurance company) Named Perils - correct answersOnly perils that are named are covered (insured must prove what caused the loss) blanket coverage - correct answersOne amount (deductible) insures more than one thing Economic Loss - correct answersLoss of rental income Principle of Indemnity - correct answersPuts you back the way you were but you won't make money on it. Indirect loss - correct a