NC Claims Adjuster COMPLETE STUDY GUIDE ACTUAL EXAM 2025/2026 ACCURATE QUESTIONS WITH CORRECT DETAILED ANSWERS || 100% GUARANTEED PASS RECENT VERSION

NC Claims Adjuster COMPLETE STUDY GUIDE ACTUAL EXAM 2025/2026 ACCURATE QUESTIONS WITH CORRECT DETAILED ANSWERS || 100% GUARANTEED PASS RECENT VERSION 1. Insurance - ANSWER - Tool to protect against overwhelming financial loss; a transfer of risk 2. Principle of Indemnity" - ANSWER to restoration of approximate previous financial condition, no more and no less (claimant made whole again) 3. The Insurance Policy - ANSWER a Legal Contract between the insurer and insured 4. Agreement - ANSWER mutual consent 5. Consideration - ANSWER all parties bring something of value 6. Competent parties - ANSWER 18 years old, sane and sober 7. Legal purpose - ANSWER no contracts written for illegal activities 8. Six Characteristics of Insurance Contracts - ANSWER 1.Personal Contract 2.Adhesion 3.Utmost Good Faith 4.Aleatory 5.Unilateral 6.Conditional 9. Workers Compensation - ANSWER A form of insurance paid by the employer providing cash benefits to workers injured or disabled in the course of employment. 10. Medical Expenses - ANSWER Incurred to treat the injury or illness will be provided 100% coverage 11. Disability Benefits - ANSWER Will be provided after an initial 7-day waiting period... 2/3 of average weekly earnings (min amt of 30 per week) 12. Death benefits - ANSWER provide up to $10,000 for a burial allowance. 2/3 deceased worker's wages for 500 weeks 13. Rehabilitation Benefits - ANSWER Provided to enable the inured worker to regain productivity and therefore reduce overall costs to the workers comp program 14. Industrial Commission - ANSWER Regulatory body for workers comp benefits and is a state agency that administers the NC Workers Comp Act ( all disputed concerning workers comp issues are referred to the Industrial Commission) 15. Peak Seasons Endorsement - ANSWER Used to provide increased coverage for a specific period of time 16. Builders Risk form - ANSWER provides coverage for buildings under construction 17. Businessowners Policy (BOP) - ANSWER Provides broad coverage in a multi-line package policy for smaller businesses 18. Business Automobile Policy (BAP) - ANSWER Provides the same types of coverage that was available in the PAP 19. Designation of Covered Autos - ANSWER Done by a numerical system (#1 - any auto #2- owned autos only #8- hired autos only #9 non-owned autos) 20. Garage Liability Policy - ANSWER Designed for automobile dealers, auto repair shops, service stations 21. Garage Keepers Liability - ANSWER Pays for losses for which the insured is legally liable. Basically, it is bailees coverage 22. Farmowners-Ranchowners Policy - ANSWER Similar to HO except it was redesigned to fit the needs of farmers 23. Boiler and Machinery Insurance - ANSWER Covers loss resulting from the sudden and accidental breakdown of objects such as boilers, air conditioners, refrigerators, etc. 24. Dwelling policies are for who? - ANSWER People who cannot qualify for coverage under the homeowners. 25. Dwelling policies replaces the - ANSWER SFP 26. SFP is similar to: - ANSWER DP1 27. DP1 - ANSWER Basic form: (NAMED PERIL) includes SFP, EC, VMM and Volcano. Peril includes damage done by vehicles unless the vehicle is owned by the insured or person in the household. 28. DP2 - ANSWER Broad form: (NAMED PERIL). DP1 plus burglars, falling objects, weight of ice, sleet or snow, overflow, power surge, and cracking, burning or bulging of hot water heater. Includes done by vehicle owned/operated by insured or household resident. 29. DP3 - ANSWER Special form: Open Peril Policy on dwelling and other structures. Same perils as DP2. 30. Dwelling Coverage A - ANSWER Dwelling: Available on all forms 31. Dwelling Coverage B - ANSWER Other structures: (10% of A) available on all forms 32. Dwelling Coverage C - ANSWER Personal Property/Contents: Purchased separately but available on all forms 33. Dwelling Coverage D - ANSWER Fair Rental Value: (10% of A) available on all forms. Automatic on Coverage A. 34. Dwelling Coverage E - ANSWER Additional Living expenses: (10% of A). Available on DP2 and DP3 endorsement needed on DP1 for this coverage. 35. Theft Added by an endorsement on Dwelling policies covers: - ANSWER Broad theft coverage: Owner occupied dwelling and covers both on and off premises. Limited theft coverage non owner occupied dwellings and only covers theft on the premises. 36. An umbrella policy may be written for - ANSWER Businesses or individuals 37. The umbrella policy pays on - ANSWER An excess basis with the underlying policy being the primary policy without a deductible. 38. What is an Self insured retention (SIR)? - ANSWER An amount of money that the named insured will remain liable for on a claim. 39. SIR's are usually what amounts? - ANSWER $10,000 on personal $50,000 to $100,000 on commercial 40. Umbrella policies will: - ANSWER Always pay their benefit after the appropriate underlying amount has been satisfied. 41. An umbrella policy will only be responsible for any liability in excess - ANSWER Even if the underlying policy is canceled. 42. Liability coverage for professionals who primarily operate in the service sector, (lawyers, accountants, insurance agents) are protected with what type of insurance? - ANSWER Errors and Omissions insurance 43. Medical professionals typically have what type of insurance? - ANSWER Malpractice 44. In NC the maximum time between renewal periods is how many years? - ANSWER 7 years 45. A lender shall accept as proof of required property insurance a binder or other temp contract of insurance as long as such evidence contains? - ANSWER The name and address of named insured and mortgagee. The amount of insurance. A description of the collateral and the provision that the binder may not be cancelled within 10 days prior notice of the mortgagee. 46. What is claims made? - ANSWER If a claim is paid during the policy period. 47. What is occurrence basis? - ANSWER If the occurrence takes place during the policy period. 48. Claims made provides what type of coverage? - ANSWER Extended reporting period 49. An Extended Reporting Period (ERP) is? - ANSWER Continuing coverage for those events that occurred during its policy period. 50. What is a basic ERP? - ANSWER Occurrences that take place during the policy period and are reported within 60 days after policy termination. Will be provided a 5 year extension to file claim. 51. What is a supplemental ERP? - ANSWER Provides coverage of unlimited duration on an excess basis only. Must request coverage in writing within 30 days of the end of policy period. 52. What is an inception/expiration date? - ANSWER The date on which coverage becomes effective or expired 53. What is the time policies become effective or expire in NC? - ANSWER 12:01AM 54. What is the occurrence date? - ANSWER The date on which a loss occured 55. Identification of parties involved on the loss report should only include? - ANSWER The names and addresses of: The parties involved Anyone injured Witnesses 56. Vicarious liability - ANSWER When someone is held liable for the actions of omissions of another person. 57. Strict Liability - ANSWER Liability incurred for causing damage to life, limb or property by a hazardous activity or a defective product. 58. Special damages - ANSWER Lost wages (past and future), funeral expenses, and rehabilitation expenses. 59. General damages - ANSWER Pain and suffering 60. Punitive damages - ANSWER When a plaintiff is awarded in addition to compensatory damages when the defendants conduct has been especially malicious. 61. Res Ispa Loquitur - ANSWER The thing that speaks for itself 62. Res Gestae - ANSWER Excited utterance 63. Prima Facie Evidence - ANSWER Evidence that is sufficient on its face to prove a given fact. 64. Lex Loci Delicti - ANSWER Locality and jurisdiction. (Location).