NC Adjuster License Practice Exam
NC Adjuster License Practice Exam
Questions and Answers Latest
Question 1
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
Question 2
The traditional definition of actual cash value (ACV) is:
Correct Answer
Replacement cost minus depreciation
Question 3
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 Sam's Homeowners policy under Coverage E - Personal Liability?
Correct Answer
Only Dan's injuries would be covered
Question 4
Torts that can be covered by insurance policies include all of the following, EXCEPT:
Correct Answer
Intentional torts purposely committed to cause harm to another.
Page 1 of 30
, NC Adjuster License Practice Exam
Question 5
The insured has a $1,000,000 personal umbrella policy with a $5,000 retention limit.
For a $7,000 liability loss not covered under the insured's personal auto policy, but
covered under the umbrella policy, the insurance company would pay:
Correct Answer
$2,000
Question 6
All of the following is considered an "insured" under a CGL policy, EXCEPT:
Correct Answer
Lawyers of the named insured
Question 7
What specific type of liability policy gives an owner protection against liability claims
arising out of the acts of its independent contractors?
Correct Answer
Owners and Contractors Protective Liability Policy.
Question 8
Which of the following would be eligible for coverage under a Businessowners policy?
Correct Answer
A small retail store
Question 9
Which of the following is NOT a correct statement in determining the cost of a
"comparable automobile" when a physical damage loss has a occurred?
Correct Answer
The cost of a comparable automobile as determined by a computerized automobile
valuation service that produces statistically valid fair market values within the United
States market
Page 2 of 30
, NC Adjuster License Practice Exam
Question 10
All of the following statements are TRUE of North Carolina automobile liability
policies, EXCEPT
Correct Answer
If the insured carries limits greater than the minimum financial responsibility limits
required by state law, they are not required to carry Uninsured/Underinsured
Motorists coverage.
Question 11
The basic limit for Coverage F -- Medical Payments of the standard Homeowners
forms is:
Correct Answer
$1,000 per person
Question 12
Oliver Dogwood was in an auto accident which destroyed his car. While investigating
the accident, Adjuster Doright found that Mr. Dogwood paid $1,000 for the vehicle.
After checking with others he found the same vehicle with an asking price of $1,700, a
retail price of $2,150 and a dealer price of $1,750. What amount will Mr. Dogwood
receive?
Correct Answer
$2,150
Question 13
When a claims representative is collecting information from a third-party claimant,
which of the following is the information that should be obtained first?
Correct Answer
The nature and extent of the injuries or property damage claimed.
Page 3 of 30
NC Adjuster License Practice Exam
Questions and Answers Latest
Question 1
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
Question 2
The traditional definition of actual cash value (ACV) is:
Correct Answer
Replacement cost minus depreciation
Question 3
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 Sam's Homeowners policy under Coverage E - Personal Liability?
Correct Answer
Only Dan's injuries would be covered
Question 4
Torts that can be covered by insurance policies include all of the following, EXCEPT:
Correct Answer
Intentional torts purposely committed to cause harm to another.
Page 1 of 30
, NC Adjuster License Practice Exam
Question 5
The insured has a $1,000,000 personal umbrella policy with a $5,000 retention limit.
For a $7,000 liability loss not covered under the insured's personal auto policy, but
covered under the umbrella policy, the insurance company would pay:
Correct Answer
$2,000
Question 6
All of the following is considered an "insured" under a CGL policy, EXCEPT:
Correct Answer
Lawyers of the named insured
Question 7
What specific type of liability policy gives an owner protection against liability claims
arising out of the acts of its independent contractors?
Correct Answer
Owners and Contractors Protective Liability Policy.
Question 8
Which of the following would be eligible for coverage under a Businessowners policy?
Correct Answer
A small retail store
Question 9
Which of the following is NOT a correct statement in determining the cost of a
"comparable automobile" when a physical damage loss has a occurred?
Correct Answer
The cost of a comparable automobile as determined by a computerized automobile
valuation service that produces statistically valid fair market values within the United
States market
Page 2 of 30
, NC Adjuster License Practice Exam
Question 10
All of the following statements are TRUE of North Carolina automobile liability
policies, EXCEPT
Correct Answer
If the insured carries limits greater than the minimum financial responsibility limits
required by state law, they are not required to carry Uninsured/Underinsured
Motorists coverage.
Question 11
The basic limit for Coverage F -- Medical Payments of the standard Homeowners
forms is:
Correct Answer
$1,000 per person
Question 12
Oliver Dogwood was in an auto accident which destroyed his car. While investigating
the accident, Adjuster Doright found that Mr. Dogwood paid $1,000 for the vehicle.
After checking with others he found the same vehicle with an asking price of $1,700, a
retail price of $2,150 and a dealer price of $1,750. What amount will Mr. Dogwood
receive?
Correct Answer
$2,150
Question 13
When a claims representative is collecting information from a third-party claimant,
which of the following is the information that should be obtained first?
Correct Answer
The nature and extent of the injuries or property damage claimed.
Page 3 of 30
