NC Claims Adjuster Exam Study Guide
Questions with Actual Detailed
Answers.
Liability Insurance PAP (Part A) - 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 - Answer A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
Certificate of Insurance (COI) - Answer A document that proves the existence of insurance
coverage
Occurrence - Answer Something that continue to happen and may cause injury later on.
Accident - Answer A sudden unforseen and unintended one time event
Assumption of risk - Answer An individual who is aware of the potential risk involved and
chose to expose themselves to it.
Comparative negligence - 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 - 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? - Answer North Carolina
Negligence - 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 - 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? - Answer A dealership loans an
insured a vehicle to drive while their car is getting fixed.
Non Owned Automobile - Answer Not owned by the named insured or any relative.
What is an example of an Non Owned Automobile? - Answer An insured borrows a
neighbors car.
If an additional vehicle is not reported to the insurer within 30 days: - Answer No coverage
will apply to the added vehicle.
If a vehicle is added to an existing policy (In addition to): - 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: - Answer Part D (Comprehensive and
Collision Coverage) will not apply to the replacement vehicle.
A new vehicle that replaces another vehicle will: - 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 - 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 - 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: - Answer Hull insurance for damage to the insured
boat itself
2nd Coverage for watercraft or yacht are: - 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? - 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? -
Answer 45 days
Elevation certificates - 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: - Answer 30 days after receipt of the
coverage application and the premium payment.
The general property form on flood insurance is used to: - Answer Insure larger residential
structures and non residential buildings.
The dwellings form on a flood insurance plan is: - 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? - Answer 1. Dwelling
2. General property
The deductible for an emergency plan applies: - Answer Separately to the building loss and
contents if purchased on a per occurrence basis.
How much is the deductible on an emergency plan? - Answer $1,000 Deductibe
The community becomes eligible for a regular plan: - 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? - Answer Overflow of inland or tidal water
What is the 2nd definition included in a flood? - Answer Unusual accumulation and run off of
surface waters
What is the 3rd definition included in a flood? - Answer Mud flows or mudslides in normally
dry land areas
What is the 4th definition included in a flood? - Answer Abnormal flood related erosion of
shorelines
Questions with Actual Detailed
Answers.
Liability Insurance PAP (Part A) - 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 - Answer A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
Certificate of Insurance (COI) - Answer A document that proves the existence of insurance
coverage
Occurrence - Answer Something that continue to happen and may cause injury later on.
Accident - Answer A sudden unforseen and unintended one time event
Assumption of risk - Answer An individual who is aware of the potential risk involved and
chose to expose themselves to it.
Comparative negligence - 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 - 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? - Answer North Carolina
Negligence - 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 - 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? - Answer A dealership loans an
insured a vehicle to drive while their car is getting fixed.
Non Owned Automobile - Answer Not owned by the named insured or any relative.
What is an example of an Non Owned Automobile? - Answer An insured borrows a
neighbors car.
If an additional vehicle is not reported to the insurer within 30 days: - Answer No coverage
will apply to the added vehicle.
If a vehicle is added to an existing policy (In addition to): - 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: - Answer Part D (Comprehensive and
Collision Coverage) will not apply to the replacement vehicle.
A new vehicle that replaces another vehicle will: - 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 - 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 - 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: - Answer Hull insurance for damage to the insured
boat itself
2nd Coverage for watercraft or yacht are: - 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? - 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? -
Answer 45 days
Elevation certificates - 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: - Answer 30 days after receipt of the
coverage application and the premium payment.
The general property form on flood insurance is used to: - Answer Insure larger residential
structures and non residential buildings.
The dwellings form on a flood insurance plan is: - 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? - Answer 1. Dwelling
2. General property
The deductible for an emergency plan applies: - Answer Separately to the building loss and
contents if purchased on a per occurrence basis.
How much is the deductible on an emergency plan? - Answer $1,000 Deductibe
The community becomes eligible for a regular plan: - 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? - Answer Overflow of inland or tidal water
What is the 2nd definition included in a flood? - Answer Unusual accumulation and run off of
surface waters
What is the 3rd definition included in a flood? - Answer Mud flows or mudslides in normally
dry land areas
What is the 4th definition included in a flood? - Answer Abnormal flood related erosion of
shorelines
