NC CLAIMS ADJUSTER EXAM LATEST VERSION
ACTUAL EXAM AND STUDY GUIDE 304
QUESTIONS AND CORRECT DETAILED
ANSWERS
Terms in this set (304)
Pays all the sums and insured must
Liability Insurance legally pay as damage due to BI/PD
PAP (Part A)
caused by an accident and resulting
from the ownership, maintenance or
use of a covered
auto.
A. Liability
B. Medical Payments
C. UM/UIM
Coverage Part A D. Physical Damage
through F of a PAP
E. Insured Duties
F. General Provisions
What is an example An insured borrows a neighbors car.
of an Non Owned
Automobile?
If an additional No coverage will apply to the added vehicle.
vehicle is not
reported to the
insurer within 30
days:
,If a replacement Part D (Comprehensive and Collision
vehicle is not Coverage) will not apply to the
reported within 30 replacement vehicle.
days:
A new vehicle that Have the same coverages as the old
replaces another vehicle if the named insured request to
vehicle will: insure it within 30 days of becoming
the owners.
What is the 2nd Unusual accumulation and run off of surface
definition included in waters
a flood?
What is the 3rd Mud flows or mudslides in normally dry land
definition included in areas
a flood?
What is the 4th Abnormal flood related erosion of shorelines
definition included in
a flood?
What is a flood? General and temporary conditions of
partial or complete inundation of
normally dry land areas.
What is the 1st thing Private insurance companies to sell and service
the "write your own" flood insurance in their own name.
program will allow?
What is the 2nd thing Collect Premiums
the "write your own"
program will allow?
What is the 3rd thing Keep percentage of premiums to cover
the "write your own" expenses and profit.
,program will allow?
What is the 4th thing Invest the rest of the profit to provide funds to
the "write you own pay claims.
program will allow?
What is the purpose The encourage communities to practice
of the National Flood flood control and to restrict development
Insurance in flood prone areas.
Program?
What does the The Sets rates, coverage limits, and eligibility
Federal Insurance requirements for flood insurance through
Administration the National Flood Insurance
(FIA) do? Program.
What does the Sets program standards for the National Flood
Federal Emergency Insurance Program.
Management Agency
(FEMA) Do?
How many roomers Up to 5 roomers and boarders
and boarders can a
dwelling policy
insure?
How many roomers Up to 2 roomers and boarders.
and boarders can a
homeowners policy
insure?
What is probability? Measuring the chance of an event occuring
What is a risk? The uncertainty of a loss
What is a pure risk? A chance of loss only
What is speculative When there is a chance of gain and a chance of
risk? loss
What is a broker? 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.
A low probability
of a loss occurring
What is the
Less than
characteristics of
catastrophic
insurable risk?
results
Lost must be
measurable
The loss must
be significant
The loss must be accidental and unintended
What is insurable risk? A risk an insurance company is willing to
accept.
A transfer of risk Insurance
What is the 1st way to Rate up marginal risk
prevent adverse
selection?
What is the 2nd Insurability standards
way to prevent
adverse selection?
What is adverse When an insured with a high risk of loss
selection (Bad Risk)? attempt to purchase insurance and are
successful in getting the insurance.
Law of Large As a larger number of events are
Numbers included, the difference between actual
and expected results become
smaller.
1. Minors
Who are competent 2. The mentally infirm
ACTUAL EXAM AND STUDY GUIDE 304
QUESTIONS AND CORRECT DETAILED
ANSWERS
Terms in this set (304)
Pays all the sums and insured must
Liability Insurance legally pay as damage due to BI/PD
PAP (Part A)
caused by an accident and resulting
from the ownership, maintenance or
use of a covered
auto.
A. Liability
B. Medical Payments
C. UM/UIM
Coverage Part A D. Physical Damage
through F of a PAP
E. Insured Duties
F. General Provisions
What is an example An insured borrows a neighbors car.
of an Non Owned
Automobile?
If an additional No coverage will apply to the added vehicle.
vehicle is not
reported to the
insurer within 30
days:
,If a replacement Part D (Comprehensive and Collision
vehicle is not Coverage) will not apply to the
reported within 30 replacement vehicle.
days:
A new vehicle that Have the same coverages as the old
replaces another vehicle if the named insured request to
vehicle will: insure it within 30 days of becoming
the owners.
What is the 2nd Unusual accumulation and run off of surface
definition included in waters
a flood?
What is the 3rd Mud flows or mudslides in normally dry land
definition included in areas
a flood?
What is the 4th Abnormal flood related erosion of shorelines
definition included in
a flood?
What is a flood? General and temporary conditions of
partial or complete inundation of
normally dry land areas.
What is the 1st thing Private insurance companies to sell and service
the "write your own" flood insurance in their own name.
program will allow?
What is the 2nd thing Collect Premiums
the "write your own"
program will allow?
What is the 3rd thing Keep percentage of premiums to cover
the "write your own" expenses and profit.
,program will allow?
What is the 4th thing Invest the rest of the profit to provide funds to
the "write you own pay claims.
program will allow?
What is the purpose The encourage communities to practice
of the National Flood flood control and to restrict development
Insurance in flood prone areas.
Program?
What does the The Sets rates, coverage limits, and eligibility
Federal Insurance requirements for flood insurance through
Administration the National Flood Insurance
(FIA) do? Program.
What does the Sets program standards for the National Flood
Federal Emergency Insurance Program.
Management Agency
(FEMA) Do?
How many roomers Up to 5 roomers and boarders
and boarders can a
dwelling policy
insure?
How many roomers Up to 2 roomers and boarders.
and boarders can a
homeowners policy
insure?
What is probability? Measuring the chance of an event occuring
What is a risk? The uncertainty of a loss
What is a pure risk? A chance of loss only
What is speculative When there is a chance of gain and a chance of
risk? loss
What is a broker? 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.
A low probability
of a loss occurring
What is the
Less than
characteristics of
catastrophic
insurable risk?
results
Lost must be
measurable
The loss must
be significant
The loss must be accidental and unintended
What is insurable risk? A risk an insurance company is willing to
accept.
A transfer of risk Insurance
What is the 1st way to Rate up marginal risk
prevent adverse
selection?
What is the 2nd Insurability standards
way to prevent
adverse selection?
What is adverse When an insured with a high risk of loss
selection (Bad Risk)? attempt to purchase insurance and are
successful in getting the insurance.
Law of Large As a larger number of events are
Numbers included, the difference between actual
and expected results become
smaller.
1. Minors
Who are competent 2. The mentally infirm
