North Carolina Pearson VUE All Lines
Adjuster Exam Comprehensive Practice Test
Actual Exam 2026/2027 with Detailed
Rationales | Complete Exam-Style Questions |
Pass Guaranteed – A+ Graded
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SECTION 1: INSURANCE REGULATION Q1 – Q10
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Question 1 of 50
A licensed North Carolina independent adjuster receives a call from a Florida-based public
adjuster who wants to assist a North Carolina policyholder with a Hurricane Florence claim.
The Florida adjuster does not hold a North Carolina license. Before the Florida adjuster can
legally participate in the claim, what must occur?
A. The Florida adjuster must obtain a North Carolina nonresident license within 30 days of
starting work on the claim.
B. The Florida adjuster must be appointed by a North Carolina licensed insurer and obtain a
temporary emergency license from the Commissioner. ✓ CORRECT
C. The Florida adjuster may work under the supervision of the licensed independent adjuster
for up to 90 days without a separate license.
D. The Florida adjuster must register with the North Carolina Department of Insurance as an
unlicensed assistant before handling any claim documents.
Correct Answer: B
Rationale: Under North Carolina General Statute §58-33-30, out-of-state adjusters may be
issued a temporary emergency license for catastrophic events, but they must be appointed by
a licensed insurer and approved by the Commissioner before performing any adjusting
activities. Option A is incorrect because there is no 30-day grace period for unlicensed
adjusting in North Carolina; adjusting without a valid license is a misdemeanor. In practice,
adjusters should verify emergency licensing status through the NCDOI portal before allowing
any out-of-state adjuster to contact policyholders.
Question 2 of 50
,A claims manager at a North Carolina admitted insurer discovers that one of the company's
staff adjusters has been handling claims for six months without a current license because
the adjuster's renewal application was denied due to continuing education deficiencies. The
manager asks the adjuster to continue working claims while the CE hours are completed.
What is the legal consequence for the insurer?
A. The insurer faces a fine of up to $500 per claim handled by the unlicensed adjuster.
B. The insurer's certificate of authority may be suspended, and the adjuster may be charged
with a Class 1 misdemeanor. ✓ CORRECT
C. The insurer must place the adjuster on administrative leave with pay until the license is
reinstated.
D. The insurer may self-report the violation and receive a 60-day cure period with no penalties.
Correct Answer: B
Rationale: North Carolina General Statute §58-33-46 makes it a Class 1 misdemeanor for any
person to act as an adjuster without a valid license, and §58-33-50 authorizes the
Commissioner to suspend or revoke an insurer's certificate of authority for knowingly
employing unlicensed adjusters. Option A understates the severity; penalties extend far
beyond per-claim fines and include criminal liability. Claims managers should immediately
remove unlicensed adjusters from claim files and report the lapse to the NCDOI to mitigate
enforcement action.
Question 3 of 50
A North Carolina resident applies for an independent adjuster license. The applicant has a
felony conviction for insurance fraud from five years ago in another state. Under North
Carolina law, how will the Commissioner likely rule on this application?
A. The Commissioner must deny the application because any felony conviction automatically
disqualifies an applicant from licensure.
B. The Commissioner may deny the application if the conviction is substantially related to
the duties of an adjuster, after considering rehabilitation and time elapsed. ✓ CORRECT
C. The Commissioner must grant the license if the applicant has completed parole and paid
all restitution.
D. The Commissioner will defer the decision to the National Insurance Producer Registry for
a standardized background review.
Correct Answer: B
Rationale: North Carolina General Statute §58-33-30(d) grants the Commissioner discretion
to deny a license based on criminal history when the offense is substantially related to the
duties of an adjuster, but the Commissioner must also consider evidence of rehabilitation
and the time elapsed since conviction. Option A is incorrect because North Carolina does not
have an automatic lifetime ban for all felonies; the Commissioner evaluates each case
, individually. Applicants with criminal histories should submit detailed rehabilitation
documentation with their application to improve their chances of approval.
Question 4 of 50
A North Carolina surplus lines broker places a commercial property policy with a
non-admitted insurer for a Raleigh manufacturing plant. A fire causes $400,000 in damage,
and the policyholder files a claim. The non-admitted insurer becomes insolvent and cannot
pay. What is the policyholder's recourse?
A. The policyholder may file a claim with the North Carolina Insurance Guaranty Association
for up to $300,000 in coverage.
B. The policyholder has no protection from the North Carolina Insurance Guaranty
Association and must pursue the insurer directly or through the surplus lines broker's errors
and omissions coverage. ✓ CORRECT
C. The surplus lines broker is automatically liable for the full claim amount because the
insurer was non-admitted.
D. The policyholder may request that the Commissioner order the broker to pay the claim
from the broker's surplus lines trust fund.
Correct Answer: B
Rationale: North Carolina Insurance Guaranty Association coverage under Article 36 of
Chapter 58 explicitly excludes surplus lines policies, leaving policyholders with non-admitted
carriers unprotected by the guaranty fund. Option A is a common trap because policyholders
often assume guaranty association protection extends to all policies, but surplus lines
buyers bear the risk of insurer insolvency. Adjusters handling surplus lines claims should
verify insurer financial strength ratings and advise policyholders of this coverage gap before a
loss occurs.
Question 5 of 50
A North Carolina public adjuster enters into a contract with a homeowner to assist with a hail
damage claim. The contract specifies that the public adjuster will receive 15% of the total
claim settlement. Two weeks later, the insurer pays the claim in full without any negotiation
by the public adjuster. What is the maximum fee the public adjuster may legally charge under
North Carolina law?
A. 15% of the total settlement, as contracted, because the fee agreement was signed before
the insurer's payment.
B. 10% of the total settlement, because North Carolina caps public adjuster fees regardless
of services rendered.
C. A reasonable fee not to exceed 10% of the insurance settlement amount for services
actually performed. ✓ CORRECT
D. Nothing, because the insurer paid the claim without the public adjuster's involvement.
Adjuster Exam Comprehensive Practice Test
Actual Exam 2026/2027 with Detailed
Rationales | Complete Exam-Style Questions |
Pass Guaranteed – A+ Graded
══════════════════════════════════════
SECTION 1: INSURANCE REGULATION Q1 – Q10
══════════════════════════════════════
Question 1 of 50
A licensed North Carolina independent adjuster receives a call from a Florida-based public
adjuster who wants to assist a North Carolina policyholder with a Hurricane Florence claim.
The Florida adjuster does not hold a North Carolina license. Before the Florida adjuster can
legally participate in the claim, what must occur?
A. The Florida adjuster must obtain a North Carolina nonresident license within 30 days of
starting work on the claim.
B. The Florida adjuster must be appointed by a North Carolina licensed insurer and obtain a
temporary emergency license from the Commissioner. ✓ CORRECT
C. The Florida adjuster may work under the supervision of the licensed independent adjuster
for up to 90 days without a separate license.
D. The Florida adjuster must register with the North Carolina Department of Insurance as an
unlicensed assistant before handling any claim documents.
Correct Answer: B
Rationale: Under North Carolina General Statute §58-33-30, out-of-state adjusters may be
issued a temporary emergency license for catastrophic events, but they must be appointed by
a licensed insurer and approved by the Commissioner before performing any adjusting
activities. Option A is incorrect because there is no 30-day grace period for unlicensed
adjusting in North Carolina; adjusting without a valid license is a misdemeanor. In practice,
adjusters should verify emergency licensing status through the NCDOI portal before allowing
any out-of-state adjuster to contact policyholders.
Question 2 of 50
,A claims manager at a North Carolina admitted insurer discovers that one of the company's
staff adjusters has been handling claims for six months without a current license because
the adjuster's renewal application was denied due to continuing education deficiencies. The
manager asks the adjuster to continue working claims while the CE hours are completed.
What is the legal consequence for the insurer?
A. The insurer faces a fine of up to $500 per claim handled by the unlicensed adjuster.
B. The insurer's certificate of authority may be suspended, and the adjuster may be charged
with a Class 1 misdemeanor. ✓ CORRECT
C. The insurer must place the adjuster on administrative leave with pay until the license is
reinstated.
D. The insurer may self-report the violation and receive a 60-day cure period with no penalties.
Correct Answer: B
Rationale: North Carolina General Statute §58-33-46 makes it a Class 1 misdemeanor for any
person to act as an adjuster without a valid license, and §58-33-50 authorizes the
Commissioner to suspend or revoke an insurer's certificate of authority for knowingly
employing unlicensed adjusters. Option A understates the severity; penalties extend far
beyond per-claim fines and include criminal liability. Claims managers should immediately
remove unlicensed adjusters from claim files and report the lapse to the NCDOI to mitigate
enforcement action.
Question 3 of 50
A North Carolina resident applies for an independent adjuster license. The applicant has a
felony conviction for insurance fraud from five years ago in another state. Under North
Carolina law, how will the Commissioner likely rule on this application?
A. The Commissioner must deny the application because any felony conviction automatically
disqualifies an applicant from licensure.
B. The Commissioner may deny the application if the conviction is substantially related to
the duties of an adjuster, after considering rehabilitation and time elapsed. ✓ CORRECT
C. The Commissioner must grant the license if the applicant has completed parole and paid
all restitution.
D. The Commissioner will defer the decision to the National Insurance Producer Registry for
a standardized background review.
Correct Answer: B
Rationale: North Carolina General Statute §58-33-30(d) grants the Commissioner discretion
to deny a license based on criminal history when the offense is substantially related to the
duties of an adjuster, but the Commissioner must also consider evidence of rehabilitation
and the time elapsed since conviction. Option A is incorrect because North Carolina does not
have an automatic lifetime ban for all felonies; the Commissioner evaluates each case
, individually. Applicants with criminal histories should submit detailed rehabilitation
documentation with their application to improve their chances of approval.
Question 4 of 50
A North Carolina surplus lines broker places a commercial property policy with a
non-admitted insurer for a Raleigh manufacturing plant. A fire causes $400,000 in damage,
and the policyholder files a claim. The non-admitted insurer becomes insolvent and cannot
pay. What is the policyholder's recourse?
A. The policyholder may file a claim with the North Carolina Insurance Guaranty Association
for up to $300,000 in coverage.
B. The policyholder has no protection from the North Carolina Insurance Guaranty
Association and must pursue the insurer directly or through the surplus lines broker's errors
and omissions coverage. ✓ CORRECT
C. The surplus lines broker is automatically liable for the full claim amount because the
insurer was non-admitted.
D. The policyholder may request that the Commissioner order the broker to pay the claim
from the broker's surplus lines trust fund.
Correct Answer: B
Rationale: North Carolina Insurance Guaranty Association coverage under Article 36 of
Chapter 58 explicitly excludes surplus lines policies, leaving policyholders with non-admitted
carriers unprotected by the guaranty fund. Option A is a common trap because policyholders
often assume guaranty association protection extends to all policies, but surplus lines
buyers bear the risk of insurer insolvency. Adjusters handling surplus lines claims should
verify insurer financial strength ratings and advise policyholders of this coverage gap before a
loss occurs.
Question 5 of 50
A North Carolina public adjuster enters into a contract with a homeowner to assist with a hail
damage claim. The contract specifies that the public adjuster will receive 15% of the total
claim settlement. Two weeks later, the insurer pays the claim in full without any negotiation
by the public adjuster. What is the maximum fee the public adjuster may legally charge under
North Carolina law?
A. 15% of the total settlement, as contracted, because the fee agreement was signed before
the insurer's payment.
B. 10% of the total settlement, because North Carolina caps public adjuster fees regardless
of services rendered.
C. A reasonable fee not to exceed 10% of the insurance settlement amount for services
actually performed. ✓ CORRECT
D. Nothing, because the insurer paid the claim without the public adjuster's involvement.
