NC Adjuster License Practice Exam 2026
Full Practice Questions and Detailed
Rationales Latest Update
‣ The traditional definition of actual cash value (ACV) is: 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?
Answer: Only Dan's injuries would be covered
‣ Torts that can be covered by insurance policies include all of the
following, EXCEPT: 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: Answer: $2,000
‣ All of the following is considered an "insured" under a CGL policy,
EXCEPT: 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?
Answer: Owners and Contractors Protective Liability Policy.
‣ Which of the following would be eligible for coverage under a
Businessowners policy? 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? 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 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: 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? 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? 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: 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?
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: 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 Answer: A sworn statement that
the insurance will be kept in force.
Full Practice Questions and Detailed
Rationales Latest Update
‣ The traditional definition of actual cash value (ACV) is: 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?
Answer: Only Dan's injuries would be covered
‣ Torts that can be covered by insurance policies include all of the
following, EXCEPT: 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: Answer: $2,000
‣ All of the following is considered an "insured" under a CGL policy,
EXCEPT: 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?
Answer: Owners and Contractors Protective Liability Policy.
‣ Which of the following would be eligible for coverage under a
Businessowners policy? 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? 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 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: 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? 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? 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: 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?
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: 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 Answer: A sworn statement that
the insurance will be kept in force.
