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NC ADJUSTER LICENSE STUDY
GUIDE|ACTUAL EXAM QUESTIONS
AND CORRECT DETAILED
ANSWERS|EXCELLENT SCORES
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: - CORRECT-ANSWER-The maximum monthly limit
of indemnity optional coverage
The traditional definition of actual cash value (ACV) is: - CORRECT-
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
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Sam's Homeowners policy under Coverage E - Personal Liability? -
CORRECT-ANSWER-Only Dan's injuries would be covered
An insured carries property insurance with a limit of $25,000 and an
80% coinsurance requirement. The covered building, however, is worth
$40,000. How much would she collect in the event of a total loss? -
CORRECT-ANSWER-$25,000.
A guest on vacation deposits cash and traveler's checks in the hotel safe
deposit box located behind the front desk. When the guest attempts to
retrieve them, the box is empty. What coverage is required to cover
this loss for the hotel? - CORRECT-ANSWER-Guests property
Public adjusters: - CORRECT-ANSWER-Adjust first-party property loss
claims.
The custom farming endorsement is usually attached to a farmowners
policy when receipts exceed: - CORRECT-ANSWER-$5,000
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Which of the following statements is correct regarding pollution
coverage under the special cause of loss form of a Commercial Property
policy? - CORRECT-ANSWER-It is excluded unless it was caused by a
covered peril
With respects to insurers writing auto coverage in the North Carolina,
which of the following is true regarding the North Carolina Motor
Vehicle Reinsurance Facility? - CORRECT-ANSWER-All insurance
companies writing auto coverage must participate in this program
Underground gasoline tanks on an insured's property leak damaging
the property next door. Which policy would pay for clean up? -
CORRECT-ANSWER-Pollution Liability endorsement
The insured is liable for $500,000 in damages for a personal injury claim
that is covered under the insured's primary liability policy. The primary
liability policy has a $300,000 limit per occurrence. The insured also has
a $1 million Umbrella policy with a $3,000 self-insured retention limit.
How would this claim likely be settled? - CORRECT-ANSWER-The
primary policy would pay $300,000 and the Umbrella policy would pay
$200,000
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A customer has eaten seafood in a restaurant and became very ill while
still in the restaurant. What type of CGL claim is this? - CORRECT-
ANSWER-Products Liability
All of the following statements are true regarding a Personal Umbrella
policy, EXCEPT: - CORRECT-ANSWER-The policy can be written as a
monoline policy
Which of the following would be considered "economic losses" that
could result in compensatory damages being awarded in a negligence
case? - CORRECT-ANSWER-Medical expense and lost wages
Farm liability coverages include each of the following, EXCEPT: -
CORRECT-ANSWER-Professional liability
NC ADJUSTER LICENSE STUDY
GUIDE|ACTUAL EXAM QUESTIONS
AND CORRECT DETAILED
ANSWERS|EXCELLENT SCORES
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: - CORRECT-ANSWER-The maximum monthly limit
of indemnity optional coverage
The traditional definition of actual cash value (ACV) is: - CORRECT-
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
, Page |2
Sam's Homeowners policy under Coverage E - Personal Liability? -
CORRECT-ANSWER-Only Dan's injuries would be covered
An insured carries property insurance with a limit of $25,000 and an
80% coinsurance requirement. The covered building, however, is worth
$40,000. How much would she collect in the event of a total loss? -
CORRECT-ANSWER-$25,000.
A guest on vacation deposits cash and traveler's checks in the hotel safe
deposit box located behind the front desk. When the guest attempts to
retrieve them, the box is empty. What coverage is required to cover
this loss for the hotel? - CORRECT-ANSWER-Guests property
Public adjusters: - CORRECT-ANSWER-Adjust first-party property loss
claims.
The custom farming endorsement is usually attached to a farmowners
policy when receipts exceed: - CORRECT-ANSWER-$5,000
, Page |3
Which of the following statements is correct regarding pollution
coverage under the special cause of loss form of a Commercial Property
policy? - CORRECT-ANSWER-It is excluded unless it was caused by a
covered peril
With respects to insurers writing auto coverage in the North Carolina,
which of the following is true regarding the North Carolina Motor
Vehicle Reinsurance Facility? - CORRECT-ANSWER-All insurance
companies writing auto coverage must participate in this program
Underground gasoline tanks on an insured's property leak damaging
the property next door. Which policy would pay for clean up? -
CORRECT-ANSWER-Pollution Liability endorsement
The insured is liable for $500,000 in damages for a personal injury claim
that is covered under the insured's primary liability policy. The primary
liability policy has a $300,000 limit per occurrence. The insured also has
a $1 million Umbrella policy with a $3,000 self-insured retention limit.
How would this claim likely be settled? - CORRECT-ANSWER-The
primary policy would pay $300,000 and the Umbrella policy would pay
$200,000
, Page |4
A customer has eaten seafood in a restaurant and became very ill while
still in the restaurant. What type of CGL claim is this? - CORRECT-
ANSWER-Products Liability
All of the following statements are true regarding a Personal Umbrella
policy, EXCEPT: - CORRECT-ANSWER-The policy can be written as a
monoline policy
Which of the following would be considered "economic losses" that
could result in compensatory damages being awarded in a negligence
case? - CORRECT-ANSWER-Medical expense and lost wages
Farm liability coverages include each of the following, EXCEPT: -
CORRECT-ANSWER-Professional liability
