NC Adjuster Prep Exam Practice Questions &
Answers 2025 Latest Version
1. Binder: A temporary policy until a decision is made about an application.
1. A person must agree to install and maintain emergency shut off system in order to qualify for coverage
would be found in the:: Warranty found in conditions section of policy.
2. There was an accident involving a car hitting a structure. During investigation a contractor found rot in another
part of the structure that will not be covered. Why?: The proximate cause, car hitting structure, was not responsible
for rot.
3. Where would you find the following statement in an insurance policy: The insured must make reasonable
effort to protect the covered property from further damage.: Conditions
4. Direct Loss: Physical harm to tangible property caused by a peril.
5. Non-waiver agreement: A signed agreement that says that the insurer may continue to investigate a claim
or defend the policyholder in court, but still keeps right to deny coverage.
6. A retail store institutes a training program for all cashiers to help them identify and deter shoplifters
would be an example of:: Risk Reduction
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12
, 7. Statement that does NOT apply to subrogation. The exact amount of subrogation will usually be determined by
a court of law.
8. Home is valued at 495k. Limit 400k with 2% deductible. 27k in damage. How much for settlement?: 19k
9. Actual Cash Value: Replacement Cost minus Depreciation
10. Home is worth 525k. Limit 500k with 1.5% deductible. 36k in damages. How much for settlement?: 28.5k
11. Franchise Deductible: When the loss is equal to or more than the deductible, the loss will be paid in full.
12. Replacement Cost: Usually beneficial to the policyholder.
13. An adjuster's preliminary claim report should:: Establish a claim reserve.
14. Staff Adjuster: Adjuster that is employed by only one insurance company and paid by salary.
15. As a fiduciary agent, an adjuster has the power to bind the insurer. Which of the following statements is FALSE
regarding this power?: Only an adjuster's written statements can legally bind an insurer.
16. If a claim includes lost wages, an adjuster should:: Verify the loss with the employer.
17. In liability claims the defendant is usually:: The insurer
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12
Answers 2025 Latest Version
1. Binder: A temporary policy until a decision is made about an application.
1. A person must agree to install and maintain emergency shut off system in order to qualify for coverage
would be found in the:: Warranty found in conditions section of policy.
2. There was an accident involving a car hitting a structure. During investigation a contractor found rot in another
part of the structure that will not be covered. Why?: The proximate cause, car hitting structure, was not responsible
for rot.
3. Where would you find the following statement in an insurance policy: The insured must make reasonable
effort to protect the covered property from further damage.: Conditions
4. Direct Loss: Physical harm to tangible property caused by a peril.
5. Non-waiver agreement: A signed agreement that says that the insurer may continue to investigate a claim
or defend the policyholder in court, but still keeps right to deny coverage.
6. A retail store institutes a training program for all cashiers to help them identify and deter shoplifters
would be an example of:: Risk Reduction
1/
12
, 7. Statement that does NOT apply to subrogation. The exact amount of subrogation will usually be determined by
a court of law.
8. Home is valued at 495k. Limit 400k with 2% deductible. 27k in damage. How much for settlement?: 19k
9. Actual Cash Value: Replacement Cost minus Depreciation
10. Home is worth 525k. Limit 500k with 1.5% deductible. 36k in damages. How much for settlement?: 28.5k
11. Franchise Deductible: When the loss is equal to or more than the deductible, the loss will be paid in full.
12. Replacement Cost: Usually beneficial to the policyholder.
13. An adjuster's preliminary claim report should:: Establish a claim reserve.
14. Staff Adjuster: Adjuster that is employed by only one insurance company and paid by salary.
15. As a fiduciary agent, an adjuster has the power to bind the insurer. Which of the following statements is FALSE
regarding this power?: Only an adjuster's written statements can legally bind an insurer.
16. If a claim includes lost wages, an adjuster should:: Verify the loss with the employer.
17. In liability claims the defendant is usually:: The insurer
2/
12
