NC ADJUSTER LICENSING EXAM ACTUAL EXAM
QUESTIONS AND ANSWERS 2025/2026 | COMPLETE
QUESTIONS AND CORRECT ANSWERS | UPDATED
VERSION
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 Sam's Homeowners
policy under Coverage E - Personal Liability? - (Correct Answer) -
Only Dan's injuries would be covered
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.
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
,All of the following is considered an "insured" under a CGL
policy, EXCEPT: - (Correct Answer) -Lawyers of the named
insured
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.
Which of the following would be eligible for coverage under a
Businessowners policy? - (Correct Answer) -A small retail store
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
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.
The basic limit for Coverage F -- Medical Payments of the
standard Homeowners forms is: - (Correct Answer) -$1,000 per
person
,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
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.
The Business Auto uses Symbol 7 to cover "specifically described
autos" identified in the declarations. An auto acquired during the
policy period will only be covered: - (Correct Answer) -If the
insured insures all of their vehicles with the company or it
replaces a covered auto..
What coverage under the BOP automatically applies if a
customer slips and falls on the named insured's premises,
regardless of legal liability? - (Correct Answer) -Medical expense
coverage
When an insurer is called upon to defend a suit under a CGL
policy, the amount that can be paid for the defense costs is: -
(Correct Answer) -Not limited
Any North Carolina lender in making or servicing real estate
mortgage or deed of trust loans on one to four family residences
must accept a binder as proof of insurance. The binder presented
, to the lender must include all of the following, EXCEPT - (Correct
Answer) -A sworn statement that the insurance will be kept in
force.
Which of the following statements is TRUE concerning Part A -
Liability coverage on a standard Personal Automobile policy? -
(Correct Answer) -The coverage is provided only for accidents
caused by those who are "insureds" under the policy..
Which of the following is NOT a reason to purchase a Dwelling
policy instead of a Homeowners policy? - (Correct Answer) -The
Dwelling policy provides higher limits of liability than the
Homeowners policy..
Which of the following is NOT excluded by Section II - Liability of
the Business Automobile policy? - (Correct Answer) -Cost to
defend the insured
The insured and her 18-year-old son, who lives in the insured's
household, are crossing the street when both of them are struck
by a drunk driver. The Part B - Medical Payments coverage of the
insured's personal auto policy will: - (Correct Answer) -Provide
coverage for both the insured and her son
All of the following are types of rehabilitative services provided
under a workers' compensation policy, EXCEPT: - (Correct
Answer) -Substance abuse
QUESTIONS AND ANSWERS 2025/2026 | COMPLETE
QUESTIONS AND CORRECT ANSWERS | UPDATED
VERSION
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 Sam's Homeowners
policy under Coverage E - Personal Liability? - (Correct Answer) -
Only Dan's injuries would be covered
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.
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
,All of the following is considered an "insured" under a CGL
policy, EXCEPT: - (Correct Answer) -Lawyers of the named
insured
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.
Which of the following would be eligible for coverage under a
Businessowners policy? - (Correct Answer) -A small retail store
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
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.
The basic limit for Coverage F -- Medical Payments of the
standard Homeowners forms is: - (Correct Answer) -$1,000 per
person
,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
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.
The Business Auto uses Symbol 7 to cover "specifically described
autos" identified in the declarations. An auto acquired during the
policy period will only be covered: - (Correct Answer) -If the
insured insures all of their vehicles with the company or it
replaces a covered auto..
What coverage under the BOP automatically applies if a
customer slips and falls on the named insured's premises,
regardless of legal liability? - (Correct Answer) -Medical expense
coverage
When an insurer is called upon to defend a suit under a CGL
policy, the amount that can be paid for the defense costs is: -
(Correct Answer) -Not limited
Any North Carolina lender in making or servicing real estate
mortgage or deed of trust loans on one to four family residences
must accept a binder as proof of insurance. The binder presented
, to the lender must include all of the following, EXCEPT - (Correct
Answer) -A sworn statement that the insurance will be kept in
force.
Which of the following statements is TRUE concerning Part A -
Liability coverage on a standard Personal Automobile policy? -
(Correct Answer) -The coverage is provided only for accidents
caused by those who are "insureds" under the policy..
Which of the following is NOT a reason to purchase a Dwelling
policy instead of a Homeowners policy? - (Correct Answer) -The
Dwelling policy provides higher limits of liability than the
Homeowners policy..
Which of the following is NOT excluded by Section II - Liability of
the Business Automobile policy? - (Correct Answer) -Cost to
defend the insured
The insured and her 18-year-old son, who lives in the insured's
household, are crossing the street when both of them are struck
by a drunk driver. The Part B - Medical Payments coverage of the
insured's personal auto policy will: - (Correct Answer) -Provide
coverage for both the insured and her son
All of the following are types of rehabilitative services provided
under a workers' compensation policy, EXCEPT: - (Correct
Answer) -Substance abuse
