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NC Adjuster License Practice Exam
Questions With 100% Verified Answers
|2025 Update
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
Which of the following is generally not considered to be a legal defense against
claims of negligence? - correct-answer-The loss to the plaintiff was caused
intentionally by the defendant. .
All of the following are true regarding the "Write Your Own" program of the NFIP,
EXCEPT: - correct-answer-Insurers are required to participate in the program
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How are death benefits calculated for an employee who has died as a result of a
work related incident? - correct-answer-66 2/3% of the employee's average
weekly wage for 500 weeks
Sharon's North Carolina home is covered under a Homeowner's policy with a
"Refrigerated Property Coverage" endorsement attached. She stores large
amounts of expensive meats in her freezer at any given time. One morning, she
doesn't hear the low hum of her freezer motor. When she opens her freezer door,
she finds that the freezer is no longer cold and all of her meat has spoiled. Sharon
collects her receipts and finds that the price of the spoiled meat totals $658 and
she submits a claim for this loss. How much will her insurer pay? - correct-answer-
$500
Which of the following terms does NOT apply to workers compensation coverage
in North Carolina? - correct-answer-Temporary sick leave with benefits
Coverage D - Loss of Use on the Homeowners forms provides coverage for "Civil
Authority Prohibits Use" for: - correct-answer-No more than two weeks
All of the following statements are TRUE of the terms used in the standard
workers' compensation policy, EXCEPT: - correct-answer-"State" means any state
of the United States, the District of Columbia, and all territories and possessions.
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Under the comprehensive coverage of a Business Auto policy, which of the
following would not be a covered loss? - correct-answer-After sliding on an icy
pavement, a driver hits a guard rail.
The Insurance Information & Privacy Protection Act (IIPPA) requires insurers to
conform to all of the following standards, EXCEPT: - correct-answer-Give
reasonable notice for policy renewal and other policy changes..
The Section I Additional Coverage of the standard Businessowners policy provides
coverage for "Debris Removal". Which of the following statements best describes
the limit for this coverage? - correct-answer-The total limit may be up to 25% of
the policy limit for the loss payable with the deductible included, plus up to an
additional $25,000 if the policy limits are exhausted
When would the Personal Auto policy respond to a loss with an all-terrain three-
wheeled vehicle? - correct-answer-When used in an emergency situation
Sarah is shopping at a grocery store and wants to purchase a bottle of juice. The
aisle is marked off with a rope awaiting the clerk to clean up a previously broken
bottle and spill on the floor. Sarah moves the rope to get the item and slips and
falls on the floor, cutting her face on the scattered glass. Which of the following
would be the defense that the insurance company would most likely use in this
NC Adjuster License Practice Exam
Questions With 100% Verified Answers
|2025 Update
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
Which of the following is generally not considered to be a legal defense against
claims of negligence? - correct-answer-The loss to the plaintiff was caused
intentionally by the defendant. .
All of the following are true regarding the "Write Your Own" program of the NFIP,
EXCEPT: - correct-answer-Insurers are required to participate in the program
,2|Page
How are death benefits calculated for an employee who has died as a result of a
work related incident? - correct-answer-66 2/3% of the employee's average
weekly wage for 500 weeks
Sharon's North Carolina home is covered under a Homeowner's policy with a
"Refrigerated Property Coverage" endorsement attached. She stores large
amounts of expensive meats in her freezer at any given time. One morning, she
doesn't hear the low hum of her freezer motor. When she opens her freezer door,
she finds that the freezer is no longer cold and all of her meat has spoiled. Sharon
collects her receipts and finds that the price of the spoiled meat totals $658 and
she submits a claim for this loss. How much will her insurer pay? - correct-answer-
$500
Which of the following terms does NOT apply to workers compensation coverage
in North Carolina? - correct-answer-Temporary sick leave with benefits
Coverage D - Loss of Use on the Homeowners forms provides coverage for "Civil
Authority Prohibits Use" for: - correct-answer-No more than two weeks
All of the following statements are TRUE of the terms used in the standard
workers' compensation policy, EXCEPT: - correct-answer-"State" means any state
of the United States, the District of Columbia, and all territories and possessions.
, 3|Page
Under the comprehensive coverage of a Business Auto policy, which of the
following would not be a covered loss? - correct-answer-After sliding on an icy
pavement, a driver hits a guard rail.
The Insurance Information & Privacy Protection Act (IIPPA) requires insurers to
conform to all of the following standards, EXCEPT: - correct-answer-Give
reasonable notice for policy renewal and other policy changes..
The Section I Additional Coverage of the standard Businessowners policy provides
coverage for "Debris Removal". Which of the following statements best describes
the limit for this coverage? - correct-answer-The total limit may be up to 25% of
the policy limit for the loss payable with the deductible included, plus up to an
additional $25,000 if the policy limits are exhausted
When would the Personal Auto policy respond to a loss with an all-terrain three-
wheeled vehicle? - correct-answer-When used in an emergency situation
Sarah is shopping at a grocery store and wants to purchase a bottle of juice. The
aisle is marked off with a rope awaiting the clerk to clean up a previously broken
bottle and spill on the floor. Sarah moves the rope to get the item and slips and
falls on the floor, cutting her face on the scattered glass. Which of the following
would be the defense that the insurance company would most likely use in this
