NC Claims Adjuster Exam Study questions with
answers
Liability Insurance PAP (Part A) - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
Certificate of Insurance (COI) - CORRECT ANSWERS ✔✔A document that proves
the existence of insurance coverage
Occurrence - CORRECT ANSWERS ✔✔Something that continue to happen and may
cause injury later on.
Accident - CORRECT ANSWERS ✔✔A sudden unforseen and unintended one time
event
Assumption of risk - CORRECT ANSWERS ✔✔An individual who is aware of the
potential risk involved and chose to expose themselves to it.
,Comparative negligence - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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? - CORRECT ANSWERS ✔✔North Carolina
Negligence - CORRECT ANSWERS ✔✔Failure to do (or not do) what a reasonable
prudent person would or would not have done in a similar instance.
Temporary Substitute Automobile - CORRECT ANSWERS ✔✔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? - CORRECT ANSWERS
✔✔A dealership loans an insured a vehicle to drive while their car is getting fixed.
Non Owned Automobile - CORRECT ANSWERS ✔✔Not owned by the named
insured or any relative.
What is an example of an Non Owned Automobile? - CORRECT ANSWERS ✔✔An
insured borrows a neighbors car.
,If an additional vehicle is not reported to the insurer within 30 days: - CORRECT
ANSWERS ✔✔No coverage will apply to the added vehicle.
If a vehicle is added to an existing policy (In addition to): - CORRECT ANSWERS
✔✔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: - CORRECT ANSWERS
✔✔Part D (Comprehensive and Collision Coverage) will not apply to the
replacement vehicle.
A new vehicle that replaces another vehicle will: - CORRECT ANSWERS ✔✔Have
the same coverages as the old vehicle if the named insured request to insure it within
30 days of becoming the owners.
Insured - CORRECT ANSWERS ✔✔Any blood relative by marriage, adoption, wards,
foster children, living in the same home, including children away at college. Also,
any person using someones car with their permission.
Named insured - CORRECT ANSWERS ✔✔Listed on the declarations page.
Included a spouse wether they are named in the policy or not, provided they live in
the same home.
1st Coverage for watercraft or yacht are: - CORRECT ANSWERS ✔✔Hull insurance
for damage to the insured boat itself
, 2nd Coverage for watercraft or yacht are: - CORRECT ANSWERS ✔✔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? - CORRECT ANSWERS
✔✔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? - CORRECT ANSWERS ✔✔45 days
Elevation certificates - CORRECT ANSWERS ✔✔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: - CORRECT ANSWERS ✔✔30 days
after receipt of the coverage application and the premium payment.
The general property form on flood insurance is used to: - CORRECT ANSWERS
✔✔Insure larger residential structures and non residential buildings.
The dwellings form on a flood insurance plan is: - CORRECT ANSWERS ✔✔Used to
ensure residential property of no more than 4 units and the contents
Flood insurance is available in 2 forms, what are they? - CORRECT ANSWERS ✔✔1.
Dwelling
2. General property
answers
Liability Insurance PAP (Part A) - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
Certificate of Insurance (COI) - CORRECT ANSWERS ✔✔A document that proves
the existence of insurance coverage
Occurrence - CORRECT ANSWERS ✔✔Something that continue to happen and may
cause injury later on.
Accident - CORRECT ANSWERS ✔✔A sudden unforseen and unintended one time
event
Assumption of risk - CORRECT ANSWERS ✔✔An individual who is aware of the
potential risk involved and chose to expose themselves to it.
,Comparative negligence - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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? - CORRECT ANSWERS ✔✔North Carolina
Negligence - CORRECT ANSWERS ✔✔Failure to do (or not do) what a reasonable
prudent person would or would not have done in a similar instance.
Temporary Substitute Automobile - CORRECT ANSWERS ✔✔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? - CORRECT ANSWERS
✔✔A dealership loans an insured a vehicle to drive while their car is getting fixed.
Non Owned Automobile - CORRECT ANSWERS ✔✔Not owned by the named
insured or any relative.
What is an example of an Non Owned Automobile? - CORRECT ANSWERS ✔✔An
insured borrows a neighbors car.
,If an additional vehicle is not reported to the insurer within 30 days: - CORRECT
ANSWERS ✔✔No coverage will apply to the added vehicle.
If a vehicle is added to an existing policy (In addition to): - CORRECT ANSWERS
✔✔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: - CORRECT ANSWERS
✔✔Part D (Comprehensive and Collision Coverage) will not apply to the
replacement vehicle.
A new vehicle that replaces another vehicle will: - CORRECT ANSWERS ✔✔Have
the same coverages as the old vehicle if the named insured request to insure it within
30 days of becoming the owners.
Insured - CORRECT ANSWERS ✔✔Any blood relative by marriage, adoption, wards,
foster children, living in the same home, including children away at college. Also,
any person using someones car with their permission.
Named insured - CORRECT ANSWERS ✔✔Listed on the declarations page.
Included a spouse wether they are named in the policy or not, provided they live in
the same home.
1st Coverage for watercraft or yacht are: - CORRECT ANSWERS ✔✔Hull insurance
for damage to the insured boat itself
, 2nd Coverage for watercraft or yacht are: - CORRECT ANSWERS ✔✔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? - CORRECT ANSWERS
✔✔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? - CORRECT ANSWERS ✔✔45 days
Elevation certificates - CORRECT ANSWERS ✔✔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: - CORRECT ANSWERS ✔✔30 days
after receipt of the coverage application and the premium payment.
The general property form on flood insurance is used to: - CORRECT ANSWERS
✔✔Insure larger residential structures and non residential buildings.
The dwellings form on a flood insurance plan is: - CORRECT ANSWERS ✔✔Used to
ensure residential property of no more than 4 units and the contents
Flood insurance is available in 2 forms, what are they? - CORRECT ANSWERS ✔✔1.
Dwelling
2. General property
