NC Adjuster License Practice Exam 2026
Complete Study Guide and 100% Verified
Answers
‣ National Flood Insurance Program (NFIP) Answer: A government-
sponsored flood insurance program for communities in designated areas.
‣ Standard Fire Policy . Answer: Insurance against property damage due
to fire or lightning
‣ definitions section . Answer: the part of an insurance policy that
explains specific terms used throughout the policy, such as ?you? or
?your,? or ?family member?
‣ risk . Answer: The chance of loss from an event that cannot be entirely
controlled
‣ hazard . Answer: A danger or risk.
‣ Peril . Answer: cause of loss
‣ 4 Parts of Insurance Contract? . Answer: Declarations
Conditions
Exclusions
, Insuring Agreement
‣ basic form . Answer: a form of a homeowners policy that insures
property against the basic perils Ex. Fire, lightning, hail, wind damage
‣ Special Peril/Open Peril (All Risk) . Answer: cover all perils except for
those that are specifically excluded. If it doesn't state its not covered
then it is covered. **if there is a dispute over whether something is
covered it would be the insurance company's job to prove its not
covered.
‣ broad form . Answer: A property and liability policy that provides
coverage for landowners from eighteen specified perils.
‣ HO-4 policy . Answer: Renters policy. Personal property covered for
broad perils.
‣ HO-5 Comprehensive Form . Answer: insures the dwelling, other
structures, and personal property against direct physical loss to property
‣ HO-2 . Answer: (broad form): covers the dwelling, other structures,
and personal property on a named perils basis
‣ HO-3 (special form) . Answer: Covers the dwelling and other
structures on a risk-of-direct-physical loss basis. All direct physical
losses are covered except those losses specifically excluded. Personal
property is covered on a named perils basis
Complete Study Guide and 100% Verified
Answers
‣ National Flood Insurance Program (NFIP) Answer: A government-
sponsored flood insurance program for communities in designated areas.
‣ Standard Fire Policy . Answer: Insurance against property damage due
to fire or lightning
‣ definitions section . Answer: the part of an insurance policy that
explains specific terms used throughout the policy, such as ?you? or
?your,? or ?family member?
‣ risk . Answer: The chance of loss from an event that cannot be entirely
controlled
‣ hazard . Answer: A danger or risk.
‣ Peril . Answer: cause of loss
‣ 4 Parts of Insurance Contract? . Answer: Declarations
Conditions
Exclusions
, Insuring Agreement
‣ basic form . Answer: a form of a homeowners policy that insures
property against the basic perils Ex. Fire, lightning, hail, wind damage
‣ Special Peril/Open Peril (All Risk) . Answer: cover all perils except for
those that are specifically excluded. If it doesn't state its not covered
then it is covered. **if there is a dispute over whether something is
covered it would be the insurance company's job to prove its not
covered.
‣ broad form . Answer: A property and liability policy that provides
coverage for landowners from eighteen specified perils.
‣ HO-4 policy . Answer: Renters policy. Personal property covered for
broad perils.
‣ HO-5 Comprehensive Form . Answer: insures the dwelling, other
structures, and personal property against direct physical loss to property
‣ HO-2 . Answer: (broad form): covers the dwelling, other structures,
and personal property on a named perils basis
‣ HO-3 (special form) . Answer: Covers the dwelling and other
structures on a risk-of-direct-physical loss basis. All direct physical
losses are covered except those losses specifically excluded. Personal
property is covered on a named perils basis
