NC CLAIMS ADJUSTER UPDATED END OF COURSE EXAM
QUESTIONS AND SOLUTIONS RATED A+
✔✔Commercial Provisions - ✔✔Premium Audit
-Insurer accepts a deposit premium, based on estimate of risk
-Then at end of policy term, insurer audits actual exposure and calculates actual
premium
Inspections and Surveys
-Insurer may inspect premises any time and recommend changes
Examination of Books and Records
-Insurer has right to inspect business records up to three years after policy expires
✔✔Recoverable Depreciation - ✔✔This allows the insurer to pay only the ACV at first.
Then, once the repair or replacement is complete, the insurer will indemnify the insured
for the rest of the cost.
✔✔Control of Property - ✔✔act of neglect by a person beyond the insured direction or
control will not affect the insured
✔✔No Benefit to Bailee - ✔✔Specifies that insurance coverage will not benefit a third
party who has custody or control of the insured's property, even if it is with the insured's
granted permission.
✔✔ Adjusters Authority - ✔✔An agent's authority can bind.
● What the agent says or does can bind the insurer
✔✔Agent's Responsibilities - ✔✔1. Adhere to or follow the contract
2. Use reasonable judgment and care at all times
3. Provide all necessary information and documentation to the insurer
✔✔Express Authority - ✔✔Authority that is directly granted to the agent in writing via the
agent's contract
Agents usually have express authority to:
● Sell policies
● Collect premiums
● Issue binders
● Offer discounts (such as multi-policy discounts)
● Cancel insurance
✔✔Implied Authority - ✔✔Reasonable for public to believe, not expressly granted in
writing
QUESTIONS AND SOLUTIONS RATED A+
✔✔Commercial Provisions - ✔✔Premium Audit
-Insurer accepts a deposit premium, based on estimate of risk
-Then at end of policy term, insurer audits actual exposure and calculates actual
premium
Inspections and Surveys
-Insurer may inspect premises any time and recommend changes
Examination of Books and Records
-Insurer has right to inspect business records up to three years after policy expires
✔✔Recoverable Depreciation - ✔✔This allows the insurer to pay only the ACV at first.
Then, once the repair or replacement is complete, the insurer will indemnify the insured
for the rest of the cost.
✔✔Control of Property - ✔✔act of neglect by a person beyond the insured direction or
control will not affect the insured
✔✔No Benefit to Bailee - ✔✔Specifies that insurance coverage will not benefit a third
party who has custody or control of the insured's property, even if it is with the insured's
granted permission.
✔✔ Adjusters Authority - ✔✔An agent's authority can bind.
● What the agent says or does can bind the insurer
✔✔Agent's Responsibilities - ✔✔1. Adhere to or follow the contract
2. Use reasonable judgment and care at all times
3. Provide all necessary information and documentation to the insurer
✔✔Express Authority - ✔✔Authority that is directly granted to the agent in writing via the
agent's contract
Agents usually have express authority to:
● Sell policies
● Collect premiums
● Issue binders
● Offer discounts (such as multi-policy discounts)
● Cancel insurance
✔✔Implied Authority - ✔✔Reasonable for public to believe, not expressly granted in
writing
