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NC ADJUSTER LICENSE PRACTICE
EXAM 2025 QUESTIONS AND ANSWERS.
1. Which sections of the Standard Fire policy are found on the
first page of the policy? - correct answer- The Declarations
page and the Insuring Agreement
2. Kim owns an Art studio where she offers painting lessons
and sells painting and art supplies. She carries a
Commercial General Liability policy to cover her business.
Which of the following situations would be covered by Kim's
CGL insurance? - correct answer- A client slips and falls on
wet paint that was dripped on the floor in Kim's art studio.
The client breaks her arm.
3. The North Carolina Insurance Code has established a
penalty for willfully making false statements in a financial
statement. The violator is considered: - correct answer-
Guilty of a Class I felony and can be subject to a fine of not
less than $2,000, nor more than $10,000
4. To be eligible for coverage under a standardized Dwelling
policy, the insured must not allow more than _______
boarders to live on the premises. - correct answer- 5
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5. Jeff has his 1974 Pontiac Firebird Trans-Am SD-455 covered
under a standardized personal automobile policy. He has
had a full restoration done to both the interior and exterior of
his muscle car and he can't wait to show it off. When Jeff's
buddy Dale sees the car, he challenges Jeff to race against
him in his 1971 Chevy Camaro SS350. Jeff accepts the
challenge and the two men set a date for the following week.
The following week, many people find out about the race and
come out to watch on race day. Shortly after the race begins,
Jeff loses control of his car when a tire blows out and he
swerves into the crowd of people watching the race, injuring
several. He is sued for bodily injury. Which of the following
statements best describes how Part A of Jeff's personal auto
policy will cover the costs to defend the claims against Jeff? -
correct answer- The insurer will not defend against the claim
because it is not covered under the policy
6. Coverage for all reasonable expenses incurred by an insured
in order to continue as nearly as practicable the normal
operation of his/her business after a loss is: - correct answer-
Extra Expense Coverage.
7. All of the following statements are TRUE about Workers
Compensation benefits, EXCEPT: - correct answer- Waiting
periods apply to medical and disability benefits.
8. All of the following are exceptions to the workers'
compensation exclusive remedy, EXCEPT: - correct answer-
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An on-the-job injury caused by worker fatigue from working
an excessive number of over-time hours..
9. Under a Business Auto policy, which coverage symbol
indicates that a car is subject to mandatory no-fault
insurance as required by state law? - correct answer- 5
10. Philip has several vehicles that are all covered under
Personal Automobile policies. He has several acres of land
with a barn and chicken coup on the property. To drive
around on the acreage, Philip has a very old truck that is not
licensed or insured. One afternoon, Philip is driving out to
check on his cows when he hits a rut and his head slams
down on the steering wheel, injuring him severely. How will
Part B - Medical Payments provide coverage for Philip's
injuries? - correct answer- Bodily injury sustained while
occupying an uninsured auto owned by the insured is
excluded under Part B, therefore no coverage would apply
11. An insured who would like to cover an employee while
driving their own car on company time would need which of
the following endorsements? - correct answer- Employees as
Insureds endorsement
12. Under the "Emergency Program" in all states except
Alaska and Hawaii, the National Flood Insurance Program
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will insure a single-family residence for up to: - correct
answer- $35,000.
13. Which of the following statements is true about the
Standard Fire Policy? - correct answer- Standard Fire Policy
is no longer used in its original format
14. Which of the following Commercial Property cause of loss
forms include the additional coverage for "Fungus, Wet Rot,
Dry Rot, and Bacterial"? - correct answer- The basic, broad,
and special cause of loss forms..
15. Homeowners policies cover all of the following, EXCEPT: -
correct answer- A 2-family dwelling occupied by tenants who
are renting the covered premises from the named insured..
16. Alec goes to an amusement park and rides a roller coaster
that was designed to flip the riders upside down. Alec is taller
than the average person so when the roller coaster flips, he
hits his head on the safety bar. After receiving medical care,
Alec files a claim against the amusement park, seeking
payment for his medical bills, pain and suffering. What
defense against negligence would the amusement park most
likely use to deny this claim? - correct answer- Assumption of
Risk
NC ADJUSTER LICENSE PRACTICE
EXAM 2025 QUESTIONS AND ANSWERS.
1. Which sections of the Standard Fire policy are found on the
first page of the policy? - correct answer- The Declarations
page and the Insuring Agreement
2. Kim owns an Art studio where she offers painting lessons
and sells painting and art supplies. She carries a
Commercial General Liability policy to cover her business.
Which of the following situations would be covered by Kim's
CGL insurance? - correct answer- A client slips and falls on
wet paint that was dripped on the floor in Kim's art studio.
The client breaks her arm.
3. The North Carolina Insurance Code has established a
penalty for willfully making false statements in a financial
statement. The violator is considered: - correct answer-
Guilty of a Class I felony and can be subject to a fine of not
less than $2,000, nor more than $10,000
4. To be eligible for coverage under a standardized Dwelling
policy, the insured must not allow more than _______
boarders to live on the premises. - correct answer- 5
, Page | 2
5. Jeff has his 1974 Pontiac Firebird Trans-Am SD-455 covered
under a standardized personal automobile policy. He has
had a full restoration done to both the interior and exterior of
his muscle car and he can't wait to show it off. When Jeff's
buddy Dale sees the car, he challenges Jeff to race against
him in his 1971 Chevy Camaro SS350. Jeff accepts the
challenge and the two men set a date for the following week.
The following week, many people find out about the race and
come out to watch on race day. Shortly after the race begins,
Jeff loses control of his car when a tire blows out and he
swerves into the crowd of people watching the race, injuring
several. He is sued for bodily injury. Which of the following
statements best describes how Part A of Jeff's personal auto
policy will cover the costs to defend the claims against Jeff? -
correct answer- The insurer will not defend against the claim
because it is not covered under the policy
6. Coverage for all reasonable expenses incurred by an insured
in order to continue as nearly as practicable the normal
operation of his/her business after a loss is: - correct answer-
Extra Expense Coverage.
7. All of the following statements are TRUE about Workers
Compensation benefits, EXCEPT: - correct answer- Waiting
periods apply to medical and disability benefits.
8. All of the following are exceptions to the workers'
compensation exclusive remedy, EXCEPT: - correct answer-
, Page | 3
An on-the-job injury caused by worker fatigue from working
an excessive number of over-time hours..
9. Under a Business Auto policy, which coverage symbol
indicates that a car is subject to mandatory no-fault
insurance as required by state law? - correct answer- 5
10. Philip has several vehicles that are all covered under
Personal Automobile policies. He has several acres of land
with a barn and chicken coup on the property. To drive
around on the acreage, Philip has a very old truck that is not
licensed or insured. One afternoon, Philip is driving out to
check on his cows when he hits a rut and his head slams
down on the steering wheel, injuring him severely. How will
Part B - Medical Payments provide coverage for Philip's
injuries? - correct answer- Bodily injury sustained while
occupying an uninsured auto owned by the insured is
excluded under Part B, therefore no coverage would apply
11. An insured who would like to cover an employee while
driving their own car on company time would need which of
the following endorsements? - correct answer- Employees as
Insureds endorsement
12. Under the "Emergency Program" in all states except
Alaska and Hawaii, the National Flood Insurance Program
, Page | 4
will insure a single-family residence for up to: - correct
answer- $35,000.
13. Which of the following statements is true about the
Standard Fire Policy? - correct answer- Standard Fire Policy
is no longer used in its original format
14. Which of the following Commercial Property cause of loss
forms include the additional coverage for "Fungus, Wet Rot,
Dry Rot, and Bacterial"? - correct answer- The basic, broad,
and special cause of loss forms..
15. Homeowners policies cover all of the following, EXCEPT: -
correct answer- A 2-family dwelling occupied by tenants who
are renting the covered premises from the named insured..
16. Alec goes to an amusement park and rides a roller coaster
that was designed to flip the riders upside down. Alec is taller
than the average person so when the roller coaster flips, he
hits his head on the safety bar. After receiving medical care,
Alec files a claim against the amusement park, seeking
payment for his medical bills, pain and suffering. What
defense against negligence would the amusement park most
likely use to deny this claim? - correct answer- Assumption of
Risk
