NC Adjuster License Exam New Latest Exam
Best Studying Material with All Questions,
Exams of Insurance law LATEST UPDATE 2025
ALREADY GRADED A
Sarah is shopping at a grocery store and wants to purchase a bottle of juice. The aisle is marked
off with a rope awaiting the clerk to clean up a previously broken bottle and spill on the floor.
Sarah moves the rope to get the item and slips and falls on the floor, cutting her face on the
scattered glass. Which of the following would be the defense that the insurance company would
most likely use in this situation? - ANSWER>>Assumption of risk and contributory negligence on
the part of the customer
All of the following are excluded under the 1943 Standard Fire policy, EXCEPT: - ANSWER>>The
theft of property after it had been removed from the insured premises to protect it from further
loss..
Which of the following statements is NOT TRUE regarding the "period of restoration" for
Business Income and Extra Expense coverage? - ANSWER>>The period of restoration ends when
the policy period ends
Fidelity bonds are used to cover: - ANSWER>>Employee dishonesty
Violating a cease and desist order issued by the North Carolina Commissioner after finding a
violation of the Unfair Practices will result in a a monetary fine of: - ANSWER>>A sum of not less
than $1,000 nor more than $5,000 for each violation
A licensee, for the second time, does not maintain records of insurance transactions as prescribed
by the North Carolina Commissioner. He/she will: - ANSWER>>Have their license suspended or
revoked for a one year period
Which of the following endorsements can be attached to the Business Auto policy to extend
coverage to individuals such as the owner of the business who does not carry personal auto
insurance? - ANSWER>>Drive Other Car endorsement
Under the "Money Orders and Counterfeit Money" insuring agreement of a standard Commercial
Crime form, all would be covered, EXCEPT: - ANSWER>>Taking a forged check from a customer
in exchange for merchandise
, Manny is purchasing a Commercial Property policy with a Business Income form included. Manny
can select from any of the following as a method to provide coverage, while avoiding the
coinsurance requirement, EXCEPT: - ANSWER>>The maximum monthly limit of indemnity
optional coverage
The traditional definition of actual cash value (ACV) is: - ANSWER>>Replacement cost minus
depreciation
Sam and Dan are working to clean out the gutters around the roof on Sam's house. Sam and Dan
are standing at the top of separate ladders that are propped against the side of Sam's house,
when Dan's ladder begins to wobble and ultimately falls into Sam's ladder. Both men and their
ladders crash to the ground. Whose injuries will be covered by Sam's Homeowners policy under
Coverage E - Personal Liability? - ANSWER>>Only Dan's injuries would be covered
Torts that can be covered by insurance policies include all of the following, EXCEPT: -
ANSWER>>Intentional torts purposely committed to cause harm to another.
The insured has a $1,000,000 personal umbrella policy with a $5,000 retention limit. For a $7,000
liability loss not covered under the insured's personal auto policy, but covered under the
umbrella policy, the insurance company would pay: - ANSWER>>$2,000
All of the following is considered an "insured" under a CGL policy, EXCEPT: - ANSWER>>Lawyers
of the named insured
What specific type of liability policy gives an owner protection against liability claims arising out
of the acts of its independent contractors? - ANSWER>>Owners and Contractors Protective
Liability Policy.
Which of the following would be eligible for coverage under a Businessowners policy? -
ANSWER>>A small retail store
Which of the following is NOT a correct statement in determining the cost of a "comparable
automobile" when a physical damage loss has a occurred? - ANSWER>>The cost of a
comparable automobile as determined by a computerized automobile valuation service that
produces statistically valid fair market values within the United States market
All of the following statements are TRUE of North Carolina automobile liability policies, EXCEPT -
ANSWER>>If the insured carries limits greater than the minimum financial responsibility limits
required by state law, they are not required to carry Uninsured/Underinsured Motorists coverage.
Best Studying Material with All Questions,
Exams of Insurance law LATEST UPDATE 2025
ALREADY GRADED A
Sarah is shopping at a grocery store and wants to purchase a bottle of juice. The aisle is marked
off with a rope awaiting the clerk to clean up a previously broken bottle and spill on the floor.
Sarah moves the rope to get the item and slips and falls on the floor, cutting her face on the
scattered glass. Which of the following would be the defense that the insurance company would
most likely use in this situation? - ANSWER>>Assumption of risk and contributory negligence on
the part of the customer
All of the following are excluded under the 1943 Standard Fire policy, EXCEPT: - ANSWER>>The
theft of property after it had been removed from the insured premises to protect it from further
loss..
Which of the following statements is NOT TRUE regarding the "period of restoration" for
Business Income and Extra Expense coverage? - ANSWER>>The period of restoration ends when
the policy period ends
Fidelity bonds are used to cover: - ANSWER>>Employee dishonesty
Violating a cease and desist order issued by the North Carolina Commissioner after finding a
violation of the Unfair Practices will result in a a monetary fine of: - ANSWER>>A sum of not less
than $1,000 nor more than $5,000 for each violation
A licensee, for the second time, does not maintain records of insurance transactions as prescribed
by the North Carolina Commissioner. He/she will: - ANSWER>>Have their license suspended or
revoked for a one year period
Which of the following endorsements can be attached to the Business Auto policy to extend
coverage to individuals such as the owner of the business who does not carry personal auto
insurance? - ANSWER>>Drive Other Car endorsement
Under the "Money Orders and Counterfeit Money" insuring agreement of a standard Commercial
Crime form, all would be covered, EXCEPT: - ANSWER>>Taking a forged check from a customer
in exchange for merchandise
, Manny is purchasing a Commercial Property policy with a Business Income form included. Manny
can select from any of the following as a method to provide coverage, while avoiding the
coinsurance requirement, EXCEPT: - ANSWER>>The maximum monthly limit of indemnity
optional coverage
The traditional definition of actual cash value (ACV) is: - ANSWER>>Replacement cost minus
depreciation
Sam and Dan are working to clean out the gutters around the roof on Sam's house. Sam and Dan
are standing at the top of separate ladders that are propped against the side of Sam's house,
when Dan's ladder begins to wobble and ultimately falls into Sam's ladder. Both men and their
ladders crash to the ground. Whose injuries will be covered by Sam's Homeowners policy under
Coverage E - Personal Liability? - ANSWER>>Only Dan's injuries would be covered
Torts that can be covered by insurance policies include all of the following, EXCEPT: -
ANSWER>>Intentional torts purposely committed to cause harm to another.
The insured has a $1,000,000 personal umbrella policy with a $5,000 retention limit. For a $7,000
liability loss not covered under the insured's personal auto policy, but covered under the
umbrella policy, the insurance company would pay: - ANSWER>>$2,000
All of the following is considered an "insured" under a CGL policy, EXCEPT: - ANSWER>>Lawyers
of the named insured
What specific type of liability policy gives an owner protection against liability claims arising out
of the acts of its independent contractors? - ANSWER>>Owners and Contractors Protective
Liability Policy.
Which of the following would be eligible for coverage under a Businessowners policy? -
ANSWER>>A small retail store
Which of the following is NOT a correct statement in determining the cost of a "comparable
automobile" when a physical damage loss has a occurred? - ANSWER>>The cost of a
comparable automobile as determined by a computerized automobile valuation service that
produces statistically valid fair market values within the United States market
All of the following statements are TRUE of North Carolina automobile liability policies, EXCEPT -
ANSWER>>If the insured carries limits greater than the minimum financial responsibility limits
required by state law, they are not required to carry Uninsured/Underinsured Motorists coverage.
