NC CLAIMS ADJUSTER EXAM STUDY | COMPLETE STUDY GUIDE WITH PRACTICE
QUESTIONS AND VERIFIED ANSWERS
1. Liability Insurance PAP (Part A): 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.
2. Coverage Part A through F of a PAP: A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
3. Certificate of Insurance (COI): A document that proves the existence of insurance coverage
4. Occurrence: Something that continue to happen and may cause injury later on.
5. Accident: A sudden unforseen and unintended one time event
6. Assumption of risк: An individual who is aware of the potential risк involved and chose to expose
themselves to it.
7. Comparative negligence: Measures the amount of negligence contributed to each party. The injured
party will not cover damages equal to the percentage of negligence they contribute.
8. Contributory Negligence: If an insured party contributed to their injury in anyway due to their own
negligence, we will not pay anything.
9. What state is a contributory state?: North Carolina
10. Negligence: Failure to do (or not do) what a reasonable prudent person would or would not have done in
a similar instance.
11. Temporary Substitute Automobile: Not owned by the named insured but used temporarily as a
substitute for the owned auto that is not currently being used.
12. What is an example of a Temporary substitute Automobile?: A dealership loans an
insured a vehicle to drive while their car is getting fixed.
13. Non Owned Automobile: Not owned by the named insured or any relative.
14. What is an example of an Non Owned Automobile?: An insured borrows a neighbors
car.
15. If an additional vehicle is not reported to the insurer within 30 days:: No
coverage will apply to the added vehicle.
16. If a vehicle is added to an existing policy (In addition to):: It will have the broadest
coverage if insured within 30 days of becoming the owner.
,NC CLAIMS ADJUSTER EXAM STUDY | COMPLETE STUDY GUIDE WITH PRACTICE
QUESTIONS AND VERIFIED ANSWERS
17. If a replacement vehicle is not reported within 30 days:: Part D (Comprehensive and
Collision Coverage) will not apply to the replacement vehicle.
18. A new vehicle that replaces another vehicle will:: Have the same coverages as the old
vehicle if the named insured request to insure it within 30 days of becoming the owners.
19. Insured: 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.
20. Named insured: Listed on the declarations page. Included a spouse wether they are named in the policy
or not, provided they live in the same home.
21. 1st Coverage for watercraft or yacht are:: Hull insurance for damage to the insured boat itself
22. 2nd Coverage for watercraft or yacht are:: Protection and indemnity liability coverage for BI
and PD exposures for damage to other people or other peoples boats.
23. What doesn't watercraft or yacht coverage provide?: Coverage for boats used for hire,
charger, or for transporting people for a fee.
24. How many days removal coverage is provided on the National Flood Insur-
ance Program?: 45 days
25. Elevation certificates: Required on dwellings that are written in the regular program in certain flood
zones in order to properly rate the policy.
26. Flood insurance policies become effective after:: 30 days after receipt of the coverage
application and the premium payment.
27. The general property form on flood insurance is used to:: Insure larger residential
structures and non residential buildings.
28. The dwellings form on a flood insurance plan is:: Used to ensure residential property of
no more than 4 units and the contents
29. Flood insurance is available in 2 forms, what are they?: 1. Dwelling
2. General property
30. The deductible for an emergency plan applies:: Separately to the building loss and
contents if purchased on a per occurrence basis.
31. How much is the deductible on an emergency plan?: $1,000 Deductibe
32. The community becomes eligible for a regular plan:: When a community complied with
flood control requirements and the extent of the flood plan has been mapped.
33. What are the 1st definition included in a flood?: Overflow of inland or tidal water
, NC CLAIMS ADJUSTER EXAM STUDY | COMPLETE STUDY GUIDE WITH PRACTICE
QUESTIONS AND VERIFIED ANSWERS
34. What is the 2nd definition included in a flood?: Unusual accumulation and run ott of
surface waters
35. What is the 3rd definition included in a flood?: Mud flows or mudslides in normally dry
land areas
36. What is the 4th definition included in a flood?: Abnormal flood related erosion of shorelines
37. What is a flood?: General and temporary conditions of partial or complete inundation of normally dry land
areas.
38. What is the 1st thing the "write your own" program will allow?: Private insurance
companies to sell and service flood insurance in their own name.
39. What is the 2nd thing the "write your own" program will allow?: Collect Premiums
40. What is the 3rd thing the "write your own" program will allow?: Кeep percentage
of premiums to cover expenses and profit.
41. What is the 4th thing the "write you own program will allow?: Invest the rest of the
profit to provide funds to pay claims.
42. What is the purpose of the National Flood Insurance Program?: The encourage
communities to practice flood control and to restrict development in flood prone areas.
43. What does the The Federal Insurance Administration (FIA) do?: Sets rates, cover-
age limits, and eligibility requirements for flood insurance through the National Flood Insurance Program.
44. What does the Federal Emergency Management Agency (FEMA) Do?: Sets
program standards for the National Flood Insurance Program.
45. How many roomers and boarders can a dwelling policy insure?: Up to 5 roomers
and boarders
46. How many roomers and boarders can a homeowners policy insure?: Up to 2
roomers and boarders.
47. What is probability?: Measuring the chance of an event occuring
48. What is a risк?: The uncertainty of a loss
49. What is a pure risк?: A chance of loss only
50. What is speculative risк?: When there is a chance of gain and a chance of loss
51. What is a broкer?: A person who represents the insurED. They also must be able to post a bond more
than or equal to $15,000 in favor of the state of NC.
52. What is the characteristics of insurable risк?: A low probability of a loss occurring
Less than catastrophic results
QUESTIONS AND VERIFIED ANSWERS
1. Liability Insurance PAP (Part A): 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.
2. Coverage Part A through F of a PAP: A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
3. Certificate of Insurance (COI): A document that proves the existence of insurance coverage
4. Occurrence: Something that continue to happen and may cause injury later on.
5. Accident: A sudden unforseen and unintended one time event
6. Assumption of risк: An individual who is aware of the potential risк involved and chose to expose
themselves to it.
7. Comparative negligence: Measures the amount of negligence contributed to each party. The injured
party will not cover damages equal to the percentage of negligence they contribute.
8. Contributory Negligence: If an insured party contributed to their injury in anyway due to their own
negligence, we will not pay anything.
9. What state is a contributory state?: North Carolina
10. Negligence: Failure to do (or not do) what a reasonable prudent person would or would not have done in
a similar instance.
11. Temporary Substitute Automobile: Not owned by the named insured but used temporarily as a
substitute for the owned auto that is not currently being used.
12. What is an example of a Temporary substitute Automobile?: A dealership loans an
insured a vehicle to drive while their car is getting fixed.
13. Non Owned Automobile: Not owned by the named insured or any relative.
14. What is an example of an Non Owned Automobile?: An insured borrows a neighbors
car.
15. If an additional vehicle is not reported to the insurer within 30 days:: No
coverage will apply to the added vehicle.
16. If a vehicle is added to an existing policy (In addition to):: It will have the broadest
coverage if insured within 30 days of becoming the owner.
,NC CLAIMS ADJUSTER EXAM STUDY | COMPLETE STUDY GUIDE WITH PRACTICE
QUESTIONS AND VERIFIED ANSWERS
17. If a replacement vehicle is not reported within 30 days:: Part D (Comprehensive and
Collision Coverage) will not apply to the replacement vehicle.
18. A new vehicle that replaces another vehicle will:: Have the same coverages as the old
vehicle if the named insured request to insure it within 30 days of becoming the owners.
19. Insured: 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.
20. Named insured: Listed on the declarations page. Included a spouse wether they are named in the policy
or not, provided they live in the same home.
21. 1st Coverage for watercraft or yacht are:: Hull insurance for damage to the insured boat itself
22. 2nd Coverage for watercraft or yacht are:: Protection and indemnity liability coverage for BI
and PD exposures for damage to other people or other peoples boats.
23. What doesn't watercraft or yacht coverage provide?: Coverage for boats used for hire,
charger, or for transporting people for a fee.
24. How many days removal coverage is provided on the National Flood Insur-
ance Program?: 45 days
25. Elevation certificates: Required on dwellings that are written in the regular program in certain flood
zones in order to properly rate the policy.
26. Flood insurance policies become effective after:: 30 days after receipt of the coverage
application and the premium payment.
27. The general property form on flood insurance is used to:: Insure larger residential
structures and non residential buildings.
28. The dwellings form on a flood insurance plan is:: Used to ensure residential property of
no more than 4 units and the contents
29. Flood insurance is available in 2 forms, what are they?: 1. Dwelling
2. General property
30. The deductible for an emergency plan applies:: Separately to the building loss and
contents if purchased on a per occurrence basis.
31. How much is the deductible on an emergency plan?: $1,000 Deductibe
32. The community becomes eligible for a regular plan:: When a community complied with
flood control requirements and the extent of the flood plan has been mapped.
33. What are the 1st definition included in a flood?: Overflow of inland or tidal water
, NC CLAIMS ADJUSTER EXAM STUDY | COMPLETE STUDY GUIDE WITH PRACTICE
QUESTIONS AND VERIFIED ANSWERS
34. What is the 2nd definition included in a flood?: Unusual accumulation and run ott of
surface waters
35. What is the 3rd definition included in a flood?: Mud flows or mudslides in normally dry
land areas
36. What is the 4th definition included in a flood?: Abnormal flood related erosion of shorelines
37. What is a flood?: General and temporary conditions of partial or complete inundation of normally dry land
areas.
38. What is the 1st thing the "write your own" program will allow?: Private insurance
companies to sell and service flood insurance in their own name.
39. What is the 2nd thing the "write your own" program will allow?: Collect Premiums
40. What is the 3rd thing the "write your own" program will allow?: Кeep percentage
of premiums to cover expenses and profit.
41. What is the 4th thing the "write you own program will allow?: Invest the rest of the
profit to provide funds to pay claims.
42. What is the purpose of the National Flood Insurance Program?: The encourage
communities to practice flood control and to restrict development in flood prone areas.
43. What does the The Federal Insurance Administration (FIA) do?: Sets rates, cover-
age limits, and eligibility requirements for flood insurance through the National Flood Insurance Program.
44. What does the Federal Emergency Management Agency (FEMA) Do?: Sets
program standards for the National Flood Insurance Program.
45. How many roomers and boarders can a dwelling policy insure?: Up to 5 roomers
and boarders
46. How many roomers and boarders can a homeowners policy insure?: Up to 2
roomers and boarders.
47. What is probability?: Measuring the chance of an event occuring
48. What is a risк?: The uncertainty of a loss
49. What is a pure risк?: A chance of loss only
50. What is speculative risк?: When there is a chance of gain and a chance of loss
51. What is a broкer?: A person who represents the insurED. They also must be able to post a bond more
than or equal to $15,000 in favor of the state of NC.
52. What is the characteristics of insurable risк?: A low probability of a loss occurring
Less than catastrophic results
