NC ADJUSTER COMPREHENSIVE
STUDY GUIDE 2026 FULL QUESTIONS
AND SOLUTIONS GRADED A+
◍ Utmost Good Faith.
Answer: Both parties must act honest and openly in order for the contract to
be valid.
◍ Inception/Expiration Date.
Answer: The date on which coverage became effective or expired. Policies
in North Carolina become effective and expire at 12:01am
◍ Occurrence Date.
Answer: The date on which the loss occurred
◍ Identification of Parties involve.
Answer: The loss report should include the names and addresses of the
parties involved in the loss, the names and addresses of any injured
person(s) and the names and addresses of any witness(s)
◍ Adhesion.
Answer: One party sets the terms for the contract; the other party may
simply agree or disagree
◍ Unilateral.
Answer: Only the insurer makes a promise to act; the insured can void
contract at any time.
◍ Policy form /Number.
Answer: Identifies the type of coverage purchased (policy form) and the
policy number for the particular policy purchased by the insured
◍ Personal.
, Answer: The insured person is protected from loses not the personal
property.
◍ Conditional.
Answer: The insurer must only honor the contract if the insured meets
certain conditions.
◍ Lavatory.
Answer: The execution of the contract depends on an unknown future event.
◍ Description of the Loss.
Answer: Information concerning how, when and where the accident or loss
happened is an essential element in any loss report
◍ Coverage.
Answer: Shows the type of coverage purchased as well as the limits of
coverage purchased.
◍ Conditions.
Answer: List of requirements the insured must meet for coverage to apply.
◍ Declarations.
Answer: Information that makes a policy unique to the insured.
◍ Deductible (retention).
Answer: That portion of any covered property claim that must be paid by the
insured.
◍ Exclusions.
Answer: Causes of loss or items of property that are not covered by the
policy.
◍ Endorsements.
Answer: Add, reduce, or change the coverage of the policy in some way.
◍ Definitions.
Answer: Explains exactly what specific words mean in the context of the
policy.
, ◍ Insuring Agreement.
Answer: Essence of the contract. Summarizes what the insurer will cover
and how.
◍ Tort/Tort Feasor.
Answer: A tort is a legal injury or a civil wrong to another that arises out of
actions other than a breach of contract which a court will provide a remedy
through allowing the injured party a monetary recover for damages.
◍ Elements of an Investigation.
Answer: The insured and the claims team need to work together to ensure
they have secured all of the available evidence (surveillance videos,
witnesses and their statements) as well as continue the ongoing
investigationAdjusters, investigators index reports and witnesses can all be
key pieces of the puzzle that may not be available, or there may not have
been enough information to involve at the onset
◍ Government vs Private insurance.
Answer: Mandatory, run by the government, suited to needs of the general
public.Offer insurance products based on customer preferences.
◍ Stock vs Mutual insurance.
Answer: Publicly traded; stock holders participate in dividends. Policy
holders participate in dividends.
◍ Statute of Limitations.
Answer: Each state has its own statute of limitations laws. NC is three years
◍ Reciprocal Insurer.
Answer: group of people or organizations that insure each other.
◍ Types of liability.
Answer: Contributory, Vicarious, and Strict
◍ Re-insurer.
Answer: insurance for insurers
◍ Contributory Liability.
STUDY GUIDE 2026 FULL QUESTIONS
AND SOLUTIONS GRADED A+
◍ Utmost Good Faith.
Answer: Both parties must act honest and openly in order for the contract to
be valid.
◍ Inception/Expiration Date.
Answer: The date on which coverage became effective or expired. Policies
in North Carolina become effective and expire at 12:01am
◍ Occurrence Date.
Answer: The date on which the loss occurred
◍ Identification of Parties involve.
Answer: The loss report should include the names and addresses of the
parties involved in the loss, the names and addresses of any injured
person(s) and the names and addresses of any witness(s)
◍ Adhesion.
Answer: One party sets the terms for the contract; the other party may
simply agree or disagree
◍ Unilateral.
Answer: Only the insurer makes a promise to act; the insured can void
contract at any time.
◍ Policy form /Number.
Answer: Identifies the type of coverage purchased (policy form) and the
policy number for the particular policy purchased by the insured
◍ Personal.
, Answer: The insured person is protected from loses not the personal
property.
◍ Conditional.
Answer: The insurer must only honor the contract if the insured meets
certain conditions.
◍ Lavatory.
Answer: The execution of the contract depends on an unknown future event.
◍ Description of the Loss.
Answer: Information concerning how, when and where the accident or loss
happened is an essential element in any loss report
◍ Coverage.
Answer: Shows the type of coverage purchased as well as the limits of
coverage purchased.
◍ Conditions.
Answer: List of requirements the insured must meet for coverage to apply.
◍ Declarations.
Answer: Information that makes a policy unique to the insured.
◍ Deductible (retention).
Answer: That portion of any covered property claim that must be paid by the
insured.
◍ Exclusions.
Answer: Causes of loss or items of property that are not covered by the
policy.
◍ Endorsements.
Answer: Add, reduce, or change the coverage of the policy in some way.
◍ Definitions.
Answer: Explains exactly what specific words mean in the context of the
policy.
, ◍ Insuring Agreement.
Answer: Essence of the contract. Summarizes what the insurer will cover
and how.
◍ Tort/Tort Feasor.
Answer: A tort is a legal injury or a civil wrong to another that arises out of
actions other than a breach of contract which a court will provide a remedy
through allowing the injured party a monetary recover for damages.
◍ Elements of an Investigation.
Answer: The insured and the claims team need to work together to ensure
they have secured all of the available evidence (surveillance videos,
witnesses and their statements) as well as continue the ongoing
investigationAdjusters, investigators index reports and witnesses can all be
key pieces of the puzzle that may not be available, or there may not have
been enough information to involve at the onset
◍ Government vs Private insurance.
Answer: Mandatory, run by the government, suited to needs of the general
public.Offer insurance products based on customer preferences.
◍ Stock vs Mutual insurance.
Answer: Publicly traded; stock holders participate in dividends. Policy
holders participate in dividends.
◍ Statute of Limitations.
Answer: Each state has its own statute of limitations laws. NC is three years
◍ Reciprocal Insurer.
Answer: group of people or organizations that insure each other.
◍ Types of liability.
Answer: Contributory, Vicarious, and Strict
◍ Re-insurer.
Answer: insurance for insurers
◍ Contributory Liability.
