NC Claims Adjuster Exam Study
questions and answers 2024\2025 A+
Grade
Liability Insurance PAP (Part A)
- correct answer Pays all the sums and insured must legally pay as damage due to BI/PD caused by an
accident and resulting from the ownership, maintenance or use of a covered auto.
Coverage Part A through F of a PAP
- correct answer A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
Certificate of Insurance (COI)
- correct answer A document that proves the existence of insurance coverage
Occurrence
- correct answer Something that continue to happen and may cause injury later on.
Accident
- correct answer A sudden unforseen and unintended one time event
Assumption of risk
- correct answer An individual who is aware of the potential risk involved and chose to expose
themselves to it.
,Comparative negligence
- correct answer Measures the amount of negligence contributed to each party. The injured party will
not cover damages equal to the percentage of negligence they contribute.
Contributory Negligence
- correct answer If an insured party contributed to their injury in anyway due to their own negligence,
we will not pay anything.
What state is a contributory state?
- correct answer North Carolina
Negligence
- correct answer Failure to do (or not do) what a reasonable prudent person would or would not have
done in a similar instance.
Temporary Substitute Automobile
- correct answer Not owned by the named insured but used temporarily as a substitute for the owned
auto that is not currently being used.
What is an example of a Temporary substitute Automobile?
- correct answer A dealership loans an insured a vehicle to drive while their car is getting fixed.
Non Owned Automobile
- correct answer Not owned by the named insured or any relative.
What is an example of an Non Owned Automobile?
- correct answer An insured borrows a neighbors car.
If an additional vehicle is not reported to the insurer within 30 days:
- correct answer No coverage will apply to the added vehicle.
If a vehicle is added to an existing policy (In addition to):
- correct answer It will have the broadest coverage if insured within 30 days of becoming the owner.
,If a replacement vehicle is not reported within 30 days:
- correct answer Part D (Comprehensive and Collision Coverage) will not apply to the replacement
vehicle.
A new vehicle that replaces another vehicle will:
- correct answer Have the same coverages as the old vehicle if the named insured request to insure it
within 30 days of becoming the owners.
Insured
- correct answer Any blood relative by marriage, adoption, wards, foster children, living in the same
home, including children away at college. Also, any person using someones car with their permission.
Named insured
- correct answer Listed on the declarations page. Included a spouse wether they are named in the policy
or not, provided they live in the same home.
1st Coverage for watercraft or yacht are:
- correct answer Hull insurance for damage to the insured boat itself
2nd Coverage for watercraft or yacht are:
- correct answer Protection and indemnity liability coverage for BI and PD exposures for damage to
other people or other peoples boats.
What doesn't watercraft or yacht coverage provide?
- correct answer Coverage for boats used for hire, charger, or for transporting people for a fee.
How many days removal coverage is provided on the National Flood Insurance Program?
- correct answer 45 days
Elevation certificates
- correct answer Required on dwellings that are written in the regular program in certain flood zones in
order to properly rate the policy.
, Flood insurance policies become effective after:
- correct answer 30 days after receipt of the coverage application and the premium payment.
The general property form on flood insurance is used to:
- correct answer Insure larger residential structures and non residential buildings.
The dwellings form on a flood insurance plan is:
- correct answer Used to ensure residential property of no more than 4 units and the contents
Flood insurance is available in 2 forms, what are they?
- correct answer 1. Dwelling
2. General property
The deductible for an emergency plan applies:
- correct answer Separately to the building loss and contents if purchased on a per occurrence basis.
How much is the deductible on an emergency plan?
- correct answer $1,000 Deductibe
The community becomes eligible for a regular plan:
- correct answer When a community complied with flood control requirements and the extent of the
flood plan has been mapped.
What are the 1st definition included in a flood?
- correct answer Overflow of inland or tidal water
What is the 2nd definition included in a flood?
- correct answer Unusual accumulation and run off of surface waters
What is the 3rd definition included in a flood?
- correct answer Mud flows or mudslides in normally dry land areas
questions and answers 2024\2025 A+
Grade
Liability Insurance PAP (Part A)
- correct answer Pays all the sums and insured must legally pay as damage due to BI/PD caused by an
accident and resulting from the ownership, maintenance or use of a covered auto.
Coverage Part A through F of a PAP
- correct answer A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
Certificate of Insurance (COI)
- correct answer A document that proves the existence of insurance coverage
Occurrence
- correct answer Something that continue to happen and may cause injury later on.
Accident
- correct answer A sudden unforseen and unintended one time event
Assumption of risk
- correct answer An individual who is aware of the potential risk involved and chose to expose
themselves to it.
,Comparative negligence
- correct answer Measures the amount of negligence contributed to each party. The injured party will
not cover damages equal to the percentage of negligence they contribute.
Contributory Negligence
- correct answer If an insured party contributed to their injury in anyway due to their own negligence,
we will not pay anything.
What state is a contributory state?
- correct answer North Carolina
Negligence
- correct answer Failure to do (or not do) what a reasonable prudent person would or would not have
done in a similar instance.
Temporary Substitute Automobile
- correct answer Not owned by the named insured but used temporarily as a substitute for the owned
auto that is not currently being used.
What is an example of a Temporary substitute Automobile?
- correct answer A dealership loans an insured a vehicle to drive while their car is getting fixed.
Non Owned Automobile
- correct answer Not owned by the named insured or any relative.
What is an example of an Non Owned Automobile?
- correct answer An insured borrows a neighbors car.
If an additional vehicle is not reported to the insurer within 30 days:
- correct answer No coverage will apply to the added vehicle.
If a vehicle is added to an existing policy (In addition to):
- correct answer It will have the broadest coverage if insured within 30 days of becoming the owner.
,If a replacement vehicle is not reported within 30 days:
- correct answer Part D (Comprehensive and Collision Coverage) will not apply to the replacement
vehicle.
A new vehicle that replaces another vehicle will:
- correct answer Have the same coverages as the old vehicle if the named insured request to insure it
within 30 days of becoming the owners.
Insured
- correct answer Any blood relative by marriage, adoption, wards, foster children, living in the same
home, including children away at college. Also, any person using someones car with their permission.
Named insured
- correct answer Listed on the declarations page. Included a spouse wether they are named in the policy
or not, provided they live in the same home.
1st Coverage for watercraft or yacht are:
- correct answer Hull insurance for damage to the insured boat itself
2nd Coverage for watercraft or yacht are:
- correct answer Protection and indemnity liability coverage for BI and PD exposures for damage to
other people or other peoples boats.
What doesn't watercraft or yacht coverage provide?
- correct answer Coverage for boats used for hire, charger, or for transporting people for a fee.
How many days removal coverage is provided on the National Flood Insurance Program?
- correct answer 45 days
Elevation certificates
- correct answer Required on dwellings that are written in the regular program in certain flood zones in
order to properly rate the policy.
, Flood insurance policies become effective after:
- correct answer 30 days after receipt of the coverage application and the premium payment.
The general property form on flood insurance is used to:
- correct answer Insure larger residential structures and non residential buildings.
The dwellings form on a flood insurance plan is:
- correct answer Used to ensure residential property of no more than 4 units and the contents
Flood insurance is available in 2 forms, what are they?
- correct answer 1. Dwelling
2. General property
The deductible for an emergency plan applies:
- correct answer Separately to the building loss and contents if purchased on a per occurrence basis.
How much is the deductible on an emergency plan?
- correct answer $1,000 Deductibe
The community becomes eligible for a regular plan:
- correct answer When a community complied with flood control requirements and the extent of the
flood plan has been mapped.
What are the 1st definition included in a flood?
- correct answer Overflow of inland or tidal water
What is the 2nd definition included in a flood?
- correct answer Unusual accumulation and run off of surface waters
What is the 3rd definition included in a flood?
- correct answer Mud flows or mudslides in normally dry land areas
