NC CLAIMS ADJUSTER EXAM STUDY EXAM QUESTIONS
WITH UPDATED VERIFIED RIGHT ANSWERS .
Liability Insurance PAP (Part A) - correct Answers -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.
Coverage Part A through F of a PAP - correct Answers -A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
Certificate of Insurance (COI) - correct Answers -A document that proves the existence of
insurance coverage
Occurrence - correct Answers -Something that continue to happen and may cause injury later on.
Accident - correct Answers -A sudden unforseen and unintended one time event
Assumption of risk - correct Answers -An individual who is aware of the potential risk involved
and chose to expose themselves to it.
Comparative negligence - correct Answers -Measures the amount of negligence contributed to
each party. The injured party will not cover damages equal to the percentage of negligence they
contribute.
1
,Contributory Negligence - correct Answers -If an insured party contributed to their injury in
anyway due to their own negligence, we will not pay anything.
What state is a contributory state? - correct Answers -North Carolina
Negligence - correct Answers -Failure to do (or not do) what a reasonable prudent person would
or would not have done in a similar instance.
Temporary Substitute Automobile - correct Answers -Not owned by the named insured but used
temporarily as a substitute for the owned auto that is not currently being used.
What is an example of a Temporary substitute Automobile? - correct Answers -A dealership
loans an insured a vehicle to drive while their car is getting fixed.
Non Owned Automobile - correct Answers -Not owned by the named insured or any relative.
What is an example of an Non Owned Automobile? - correct Answers -An insured borrows a
neighbors car.
If an additional vehicle is not reported to the insurer within 30 days: - correct Answers -No
coverage will apply to the added vehicle.
If a vehicle is added to an existing policy (In addition to): - correct Answers -It will have the
broadest coverage if insured within 30 days of becoming the owner.
If a replacement vehicle is not reported within 30 days: - correct Answers -Part D
(Comprehensive and Collision Coverage) will not apply to the replacement vehicle.
A new vehicle that replaces another vehicle will: - correct Answers -Have the same coverages as
the old vehicle if the named insured request to insure it within 30 days of becoming the owners.
2
,Insured - correct Answers -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.
Named insured - correct Answers -Listed on the declarations page. Included a spouse wether
they are named in the policy or not, provided they live in the same home.
1st Coverage for watercraft or yacht are: - correct Answers -Hull insurance for damage to the
insured boat itself
2nd Coverage for watercraft or yacht are: - correct Answers -Protection and indemnity liability
coverage for BI and PD exposures for damage to other people or other peoples boats.
What doesn't watercraft or yacht coverage provide? - correct Answers -Coverage for boats used
for hire, charger, or for transporting people for a fee.
How many days removal coverage is provided on the National Flood Insurance Program? -
correct Answers -45 days
Elevation certificates - correct Answers -Required on dwellings that are written in the regular
program in certain flood zones in order to properly rate the policy.
Flood insurance policies become effective after: - correct Answers -30 days after receipt of the
coverage application and the premium payment.
The general property form on flood insurance is used to: - correct Answers -Insure larger
residential structures and non residential buildings.
The dwellings form on a flood insurance plan is: - correct Answers -Used to ensure residential
property of no more than 4 units and the contents
Flood insurance is available in 2 forms, what are they? - correct Answers -1. Dwelling
3
, 2. General property
The deductible for an emergency plan applies: - correct Answers -Separately to the building loss
and contents if purchased on a per occurrence basis.
How much is the deductible on an emergency plan? - correct Answers -$1,000 Deductibe
The community becomes eligible for a regular plan: - correct Answers -When a community
complied with flood control requirements and the extent of the flood plan has been mapped.
What are the 1st definition included in a flood? - correct Answers -Overflow of inland or tidal
water
What is the 2nd definition included in a flood? - correct Answers -Unusual accumulation and run
off of surface waters
What is the 3rd definition included in a flood? - correct Answers -Mud flows or mudslides in
normally dry land areas
What is the 4th definition included in a flood? - correct Answers -Abnormal flood related erosion
of shorelines
What is a flood? - correct Answers -General and temporary conditions of partial or complete
inundation of normally dry land areas.
What is the 1st thing the "write your own" program will allow? - correct Answers -Private
insurance companies to sell and service flood insurance in their own name.
What is the 2nd thing the "write your own" program will allow? - correct Answers -Collect
Premiums
4
WITH UPDATED VERIFIED RIGHT ANSWERS .
Liability Insurance PAP (Part A) - correct Answers -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.
Coverage Part A through F of a PAP - correct Answers -A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
Certificate of Insurance (COI) - correct Answers -A document that proves the existence of
insurance coverage
Occurrence - correct Answers -Something that continue to happen and may cause injury later on.
Accident - correct Answers -A sudden unforseen and unintended one time event
Assumption of risk - correct Answers -An individual who is aware of the potential risk involved
and chose to expose themselves to it.
Comparative negligence - correct Answers -Measures the amount of negligence contributed to
each party. The injured party will not cover damages equal to the percentage of negligence they
contribute.
1
,Contributory Negligence - correct Answers -If an insured party contributed to their injury in
anyway due to their own negligence, we will not pay anything.
What state is a contributory state? - correct Answers -North Carolina
Negligence - correct Answers -Failure to do (or not do) what a reasonable prudent person would
or would not have done in a similar instance.
Temporary Substitute Automobile - correct Answers -Not owned by the named insured but used
temporarily as a substitute for the owned auto that is not currently being used.
What is an example of a Temporary substitute Automobile? - correct Answers -A dealership
loans an insured a vehicle to drive while their car is getting fixed.
Non Owned Automobile - correct Answers -Not owned by the named insured or any relative.
What is an example of an Non Owned Automobile? - correct Answers -An insured borrows a
neighbors car.
If an additional vehicle is not reported to the insurer within 30 days: - correct Answers -No
coverage will apply to the added vehicle.
If a vehicle is added to an existing policy (In addition to): - correct Answers -It will have the
broadest coverage if insured within 30 days of becoming the owner.
If a replacement vehicle is not reported within 30 days: - correct Answers -Part D
(Comprehensive and Collision Coverage) will not apply to the replacement vehicle.
A new vehicle that replaces another vehicle will: - correct Answers -Have the same coverages as
the old vehicle if the named insured request to insure it within 30 days of becoming the owners.
2
,Insured - correct Answers -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.
Named insured - correct Answers -Listed on the declarations page. Included a spouse wether
they are named in the policy or not, provided they live in the same home.
1st Coverage for watercraft or yacht are: - correct Answers -Hull insurance for damage to the
insured boat itself
2nd Coverage for watercraft or yacht are: - correct Answers -Protection and indemnity liability
coverage for BI and PD exposures for damage to other people or other peoples boats.
What doesn't watercraft or yacht coverage provide? - correct Answers -Coverage for boats used
for hire, charger, or for transporting people for a fee.
How many days removal coverage is provided on the National Flood Insurance Program? -
correct Answers -45 days
Elevation certificates - correct Answers -Required on dwellings that are written in the regular
program in certain flood zones in order to properly rate the policy.
Flood insurance policies become effective after: - correct Answers -30 days after receipt of the
coverage application and the premium payment.
The general property form on flood insurance is used to: - correct Answers -Insure larger
residential structures and non residential buildings.
The dwellings form on a flood insurance plan is: - correct Answers -Used to ensure residential
property of no more than 4 units and the contents
Flood insurance is available in 2 forms, what are they? - correct Answers -1. Dwelling
3
, 2. General property
The deductible for an emergency plan applies: - correct Answers -Separately to the building loss
and contents if purchased on a per occurrence basis.
How much is the deductible on an emergency plan? - correct Answers -$1,000 Deductibe
The community becomes eligible for a regular plan: - correct Answers -When a community
complied with flood control requirements and the extent of the flood plan has been mapped.
What are the 1st definition included in a flood? - correct Answers -Overflow of inland or tidal
water
What is the 2nd definition included in a flood? - correct Answers -Unusual accumulation and run
off of surface waters
What is the 3rd definition included in a flood? - correct Answers -Mud flows or mudslides in
normally dry land areas
What is the 4th definition included in a flood? - correct Answers -Abnormal flood related erosion
of shorelines
What is a flood? - correct Answers -General and temporary conditions of partial or complete
inundation of normally dry land areas.
What is the 1st thing the "write your own" program will allow? - correct Answers -Private
insurance companies to sell and service flood insurance in their own name.
What is the 2nd thing the "write your own" program will allow? - correct Answers -Collect
Premiums
4
