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NC ADJUSTER LICENSE EXAM|| ACTUAL STUDY
GUIDE 2024-2025 QUESTIONS AND 100% CORRECT
ANSWERS WITH A GUARANTEED A+|| LATEST
AND FULLY COVERED VERSION 2025 WITH
EXPERT VERIFIED SOLUTIONS|| ASSURED PASS!!!
Insurance Services Office - ANSWER: Calculates rates and creates policy forms
such as homeowners and auto for property and casualty insurers.
National Association of Insurance Commissioners (NAIC) - ANSWER: governing
org. for all state insurance commissioners, directors. Works towards
standardization of insurance codes in various states. All legislation passed is non-
binding on the states until passed by the state legislative.
Surety Bond - ANSWER: Guarantees performance
binder - ANSWER: temp insurance (effective 60 days)
estoppel - ANSWER: legal impediment to 1 party denying the consequence of its
own actions. if insured has waived a known right, they cannot reassess that after
the fact
hostile fire - ANSWER: fire than isnt cofined to its normal habitat
representation - ANSWER: "true to the best of ones knowledge"
Comprehensive personal liability - ANSWER: applies liability coverage to
activities or events occurring both on and off the premises.
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Ex. The mailman slips and falls in your driveway.
National Flood Insurance Program (NFIP) - ANSWER: A government-sponsored
flood insurance program for communities in designated areas.
Standard Fire Policy - ANSWER: Insurance against property damage due to fire
or lightning
definitions section - ANSWER: the part of an insurance policy that explains
specific terms used throughout the policy, such as ?you? or ?your,? or ?family
member?
risk - ANSWER: The chance of loss from an event that cannot be entirely
controlled
hazard - ANSWER: A danger or risk.
Peril - ANSWER: cause of loss
4 Parts of Insurance Contract? - ANSWER: Declarations
Conditions
Exclusions
Insuring Agreement
basic form - ANSWER: a form of a homeowners policy that insures property
against the basic perils Ex. Fire, lightning, hail, wind damage
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Special Peril/Open Peril (All Risk) - ANSWER: cover all perils except for those
that are specifically excluded. If it doesn't state its not covered then it is covered.
**if there is a dispute over whether something is covered it would be the insurance
company's job to prove its not covered.
broad form - ANSWER: A property and liability policy that provides coverage for
landowners from eighteen specified perils.
HO-4 policy - ANSWER: Renters policy. Personal property covered for broad
perils.
HO-5 Comprehensive Form - ANSWER: insures the dwelling, other structures,
and personal property against direct physical loss to property
HO-2 - ANSWER: (broad form): covers the dwelling, other structures, and
personal property on a named perils basis
HO-3 (special form) - ANSWER: Covers the dwelling and other structures on a
risk-of-direct-physical loss basis. All direct physical losses are covered except
those losses specifically excluded. Personal property is covered on a named perils
basis
Inland Marine Insurance - ANSWER: Insurance that covers many different classes
of property that typically involve an element of transportation.
Vicarious Liability - ANSWER: Legal responsibility placed on one person for the
acts of another.
Absolute Liability - ANSWER: A type of liability that occurs due to extremely
dangerous operations, such as the use of explosives or working at extreme heights.
NC ADJUSTER LICENSE EXAM|| ACTUAL STUDY
GUIDE 2024-2025 QUESTIONS AND 100% CORRECT
ANSWERS WITH A GUARANTEED A+|| LATEST
AND FULLY COVERED VERSION 2025 WITH
EXPERT VERIFIED SOLUTIONS|| ASSURED PASS!!!
Insurance Services Office - ANSWER: Calculates rates and creates policy forms
such as homeowners and auto for property and casualty insurers.
National Association of Insurance Commissioners (NAIC) - ANSWER: governing
org. for all state insurance commissioners, directors. Works towards
standardization of insurance codes in various states. All legislation passed is non-
binding on the states until passed by the state legislative.
Surety Bond - ANSWER: Guarantees performance
binder - ANSWER: temp insurance (effective 60 days)
estoppel - ANSWER: legal impediment to 1 party denying the consequence of its
own actions. if insured has waived a known right, they cannot reassess that after
the fact
hostile fire - ANSWER: fire than isnt cofined to its normal habitat
representation - ANSWER: "true to the best of ones knowledge"
Comprehensive personal liability - ANSWER: applies liability coverage to
activities or events occurring both on and off the premises.
,2|Pag e
Ex. The mailman slips and falls in your driveway.
National Flood Insurance Program (NFIP) - ANSWER: A government-sponsored
flood insurance program for communities in designated areas.
Standard Fire Policy - ANSWER: Insurance against property damage due to fire
or lightning
definitions section - ANSWER: the part of an insurance policy that explains
specific terms used throughout the policy, such as ?you? or ?your,? or ?family
member?
risk - ANSWER: The chance of loss from an event that cannot be entirely
controlled
hazard - ANSWER: A danger or risk.
Peril - ANSWER: cause of loss
4 Parts of Insurance Contract? - ANSWER: Declarations
Conditions
Exclusions
Insuring Agreement
basic form - ANSWER: a form of a homeowners policy that insures property
against the basic perils Ex. Fire, lightning, hail, wind damage
, 3|Pag e
Special Peril/Open Peril (All Risk) - ANSWER: cover all perils except for those
that are specifically excluded. If it doesn't state its not covered then it is covered.
**if there is a dispute over whether something is covered it would be the insurance
company's job to prove its not covered.
broad form - ANSWER: A property and liability policy that provides coverage for
landowners from eighteen specified perils.
HO-4 policy - ANSWER: Renters policy. Personal property covered for broad
perils.
HO-5 Comprehensive Form - ANSWER: insures the dwelling, other structures,
and personal property against direct physical loss to property
HO-2 - ANSWER: (broad form): covers the dwelling, other structures, and
personal property on a named perils basis
HO-3 (special form) - ANSWER: Covers the dwelling and other structures on a
risk-of-direct-physical loss basis. All direct physical losses are covered except
those losses specifically excluded. Personal property is covered on a named perils
basis
Inland Marine Insurance - ANSWER: Insurance that covers many different classes
of property that typically involve an element of transportation.
Vicarious Liability - ANSWER: Legal responsibility placed on one person for the
acts of another.
Absolute Liability - ANSWER: A type of liability that occurs due to extremely
dangerous operations, such as the use of explosives or working at extreme heights.
