NC Adjuster Exam Questions & Answers
2025 Latest Version A+ Scored
When an existing coverage under the policy is expanded, this is a(n):
A. Rider
B. Endorsement
C. Coverage extension
D. Additional coverage - ANS ✔ - C. Coverage extension
Which of the following is the type of loss where the cost to repair the damaged property does not
exhaust the policy limits?
A. Actual total loss
B. Constructive total loss
C. Partial average loss
D. General average loss - ANS ✔ - C. Partial average loss
Which of the following is a type of loss when the covered property is destroyed beyond repair and
nothing of value remains?
A. General average loss
B. Constructive total loss
C. Actual total loss
D. Partial average loss - ANS ✔ - C. Actual total loss
An insured has covered his dwelling for one limit, and his personal property for a different limit
under the same property insurance policy. He has insured his property on a _______ basis.
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,A. Specific
B. Reporting form
C. Blanket
D. Per type - ANS ✔ - A. Specific
All of the following are NOT typically covered under standard unendorsed property insurance
policies, EXCEPT:
A. Mold
B. Fire
C. Flood
D. Earthquake - ANS ✔ - B. Fire
Which of the following is a method for calculating actual cash value (ACV) using a combination of the
fair market value and the cost of replacement, minus depreciation?
A. Agreed value rule
B. The broad evidence rule
C. The stated value rule
D. Actual cash value rule - ANS ✔ - B. The broad evidence rule
Which of the following is the type of construction that is most fire resistant to fire and to wind?
A. Joisted masonry
B. Masonry non-combustible
C. Frame
D. Non-combustible - ANS ✔ - B. Masonry non-combustible
Which of the following is the loss valuation method that pays the value scheduled on the policy, or
actual cash value, whichever is less?
A. Agreed value
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,B. Actual cash value
C. Replacement cost
D. Stated value - ANS ✔ - D. Stated value
Fire resistive construction materials have a fire resistance rating of:
A. 3 hours
B. 1 hour
C. 2 hours
D. 30 minutes - ANS ✔ - C. 2 hours
Which of the following "defenses against negligence" is the defense used in most states of the United
States?
A. Intervening Cause
B. Contributory Negligence
C. Comparative Negligence
D. Assumption of Risk - ANS ✔ - C. Comparative Negligence
The most common method of risk management is:
A. The sharing of risk
B. The assumption of risk
C. The transfer of risk
D. Risk avoidance - ANS ✔ - C. The transfer of risk
Which of the following types of risk is associated with change is not insurable?
A. Fundamental risk
B. Particular risk
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, C. Dynamic risk
D. Static risk - ANS ✔ - C. Dynamic risk
When an existing coverage under the policy is expanded, this is a(n):
A. Rider
B. Endorsement
C. Coverage extension
D. Additional coverage - ANS ✔ - C. Coverage extension
Which of the following is the type of loss where the cost to repair the damaged property does not
exhaust the policy limits?
A. Actual total loss
B. Constructive total loss
C. Partial average loss
D. General average loss - ANS ✔ - C. Partial average loss
Which of the following is a type of loss when the covered property is destroyed beyond repair and
nothing of value remains?
A. General average loss
B. Constructive total loss
C. Actual total loss
D. Partial average loss - ANS ✔ - C. Actual total loss
An insured has covered his dwelling for one limit, and his personal property for a different limit
under the same property insurance policy. He has insured his property on a _______ basis.
A. Specific
B. Reporting form
C. Blanket
P a g e 4 | 38
2025 Latest Version A+ Scored
When an existing coverage under the policy is expanded, this is a(n):
A. Rider
B. Endorsement
C. Coverage extension
D. Additional coverage - ANS ✔ - C. Coverage extension
Which of the following is the type of loss where the cost to repair the damaged property does not
exhaust the policy limits?
A. Actual total loss
B. Constructive total loss
C. Partial average loss
D. General average loss - ANS ✔ - C. Partial average loss
Which of the following is a type of loss when the covered property is destroyed beyond repair and
nothing of value remains?
A. General average loss
B. Constructive total loss
C. Actual total loss
D. Partial average loss - ANS ✔ - C. Actual total loss
An insured has covered his dwelling for one limit, and his personal property for a different limit
under the same property insurance policy. He has insured his property on a _______ basis.
P a g e 1 | 38
,A. Specific
B. Reporting form
C. Blanket
D. Per type - ANS ✔ - A. Specific
All of the following are NOT typically covered under standard unendorsed property insurance
policies, EXCEPT:
A. Mold
B. Fire
C. Flood
D. Earthquake - ANS ✔ - B. Fire
Which of the following is a method for calculating actual cash value (ACV) using a combination of the
fair market value and the cost of replacement, minus depreciation?
A. Agreed value rule
B. The broad evidence rule
C. The stated value rule
D. Actual cash value rule - ANS ✔ - B. The broad evidence rule
Which of the following is the type of construction that is most fire resistant to fire and to wind?
A. Joisted masonry
B. Masonry non-combustible
C. Frame
D. Non-combustible - ANS ✔ - B. Masonry non-combustible
Which of the following is the loss valuation method that pays the value scheduled on the policy, or
actual cash value, whichever is less?
A. Agreed value
P a g e 2 | 38
,B. Actual cash value
C. Replacement cost
D. Stated value - ANS ✔ - D. Stated value
Fire resistive construction materials have a fire resistance rating of:
A. 3 hours
B. 1 hour
C. 2 hours
D. 30 minutes - ANS ✔ - C. 2 hours
Which of the following "defenses against negligence" is the defense used in most states of the United
States?
A. Intervening Cause
B. Contributory Negligence
C. Comparative Negligence
D. Assumption of Risk - ANS ✔ - C. Comparative Negligence
The most common method of risk management is:
A. The sharing of risk
B. The assumption of risk
C. The transfer of risk
D. Risk avoidance - ANS ✔ - C. The transfer of risk
Which of the following types of risk is associated with change is not insurable?
A. Fundamental risk
B. Particular risk
P a g e 3 | 38
, C. Dynamic risk
D. Static risk - ANS ✔ - C. Dynamic risk
When an existing coverage under the policy is expanded, this is a(n):
A. Rider
B. Endorsement
C. Coverage extension
D. Additional coverage - ANS ✔ - C. Coverage extension
Which of the following is the type of loss where the cost to repair the damaged property does not
exhaust the policy limits?
A. Actual total loss
B. Constructive total loss
C. Partial average loss
D. General average loss - ANS ✔ - C. Partial average loss
Which of the following is a type of loss when the covered property is destroyed beyond repair and
nothing of value remains?
A. General average loss
B. Constructive total loss
C. Actual total loss
D. Partial average loss - ANS ✔ - C. Actual total loss
An insured has covered his dwelling for one limit, and his personal property for a different limit
under the same property insurance policy. He has insured his property on a _______ basis.
A. Specific
B. Reporting form
C. Blanket
P a g e 4 | 38
