©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 9:46 AM A+
NC Claims Adjuster Exam Study Questions
And Answers |Latest 2025 | Guaranteed Pass
Liability Insurance PAP (Part A) - Answer✔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 - Answer✔A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
Certificate of Insurance (COI) - Answer✔A document that proves the existence of insurance
coverage
Occurrence - Answer✔Something that continue to happen and may cause injury later on.
Accident - Answer✔A sudden unforseen and unintended one time event
Assumption of risk - Answer✔An individual who is aware of the potential risk involved and
chose to expose themselves to it.
1
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 9:46 AM A+
Comparative negligence - Answer✔Measures the amount of negligence contributed to each
party. The injured party will not cover damages equal to the percentage of negligence they
contribute.
Contributory Negligence - Answer✔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? - Answer✔North Carolina
Negligence - Answer✔Failure to do (or not do) what a reasonable prudent person would or
would not have done in a similar instance.
Temporary Substitute Automobile - Answer✔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? - Answer✔A dealership loans an
insured a vehicle to drive while their car is getting fixed.
Non Owned Automobile - Answer✔Not owned by the named insured or any relative.
What is an example of an Non Owned Automobile? - Answer✔An insured borrows a neighbors
car.
If an additional vehicle is not reported to the insurer within 30 days: - Answer✔No coverage will
apply to the added vehicle.
If a vehicle is added to an existing policy (In addition to): - Answer✔It will have the broadest
coverage if insured within 30 days of becoming the owner.
2
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 9:46 AM A+
If a replacement vehicle is not reported within 30 days: - Answer✔Part D (Comprehensive and
Collision Coverage) will not apply to the replacement vehicle.
A new vehicle that replaces another vehicle will: - Answer✔Have the same coverages as the old
vehicle if the named insured request to insure it within 30 days of becoming the owners.
Insured - Answer✔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 - Answer✔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: - Answer✔Hull insurance for damage to the insured
boat itself
2nd Coverage for watercraft or yacht are: - Answer✔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? - Answer✔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? -
Answer✔45 days
Elevation certificates - Answer✔Required on dwellings that are written in the regular program
in certain flood zones in order to properly rate the policy.
3
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 9:46 AM A+
Flood insurance policies become effective after: - Answer✔30 days after receipt of the coverage
application and the premium payment.
The general property form on flood insurance is used to: - Answer✔Insure larger residential
structures and non residential buildings.
The dwellings form on a flood insurance plan is: - Answer✔Used to ensure residential property
of no more than 4 units and the contents
Flood insurance is available in 2 forms, what are they? - Answer✔1. Dwelling
2. General property
The deductible for an emergency plan applies: - Answer✔Separately to the building loss and
contents if purchased on a per occurrence basis.
How much is the deductible on an emergency plan? - Answer✔$1,000 Deductibe
The community becomes eligible for a regular plan: - Answer✔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? - Answer✔Overflow of inland or tidal water
What is the 2nd definition included in a flood? - Answer✔Unusual accumulation and run off of
surface waters
What is the 3rd definition included in a flood? - Answer✔Mud flows or mudslides in normally
dry land areas
4
NC Claims Adjuster Exam Study Questions
And Answers |Latest 2025 | Guaranteed Pass
Liability Insurance PAP (Part A) - Answer✔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 - Answer✔A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
Certificate of Insurance (COI) - Answer✔A document that proves the existence of insurance
coverage
Occurrence - Answer✔Something that continue to happen and may cause injury later on.
Accident - Answer✔A sudden unforseen and unintended one time event
Assumption of risk - Answer✔An individual who is aware of the potential risk involved and
chose to expose themselves to it.
1
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 9:46 AM A+
Comparative negligence - Answer✔Measures the amount of negligence contributed to each
party. The injured party will not cover damages equal to the percentage of negligence they
contribute.
Contributory Negligence - Answer✔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? - Answer✔North Carolina
Negligence - Answer✔Failure to do (or not do) what a reasonable prudent person would or
would not have done in a similar instance.
Temporary Substitute Automobile - Answer✔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? - Answer✔A dealership loans an
insured a vehicle to drive while their car is getting fixed.
Non Owned Automobile - Answer✔Not owned by the named insured or any relative.
What is an example of an Non Owned Automobile? - Answer✔An insured borrows a neighbors
car.
If an additional vehicle is not reported to the insurer within 30 days: - Answer✔No coverage will
apply to the added vehicle.
If a vehicle is added to an existing policy (In addition to): - Answer✔It will have the broadest
coverage if insured within 30 days of becoming the owner.
2
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 9:46 AM A+
If a replacement vehicle is not reported within 30 days: - Answer✔Part D (Comprehensive and
Collision Coverage) will not apply to the replacement vehicle.
A new vehicle that replaces another vehicle will: - Answer✔Have the same coverages as the old
vehicle if the named insured request to insure it within 30 days of becoming the owners.
Insured - Answer✔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 - Answer✔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: - Answer✔Hull insurance for damage to the insured
boat itself
2nd Coverage for watercraft or yacht are: - Answer✔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? - Answer✔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? -
Answer✔45 days
Elevation certificates - Answer✔Required on dwellings that are written in the regular program
in certain flood zones in order to properly rate the policy.
3
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 9:46 AM A+
Flood insurance policies become effective after: - Answer✔30 days after receipt of the coverage
application and the premium payment.
The general property form on flood insurance is used to: - Answer✔Insure larger residential
structures and non residential buildings.
The dwellings form on a flood insurance plan is: - Answer✔Used to ensure residential property
of no more than 4 units and the contents
Flood insurance is available in 2 forms, what are they? - Answer✔1. Dwelling
2. General property
The deductible for an emergency plan applies: - Answer✔Separately to the building loss and
contents if purchased on a per occurrence basis.
How much is the deductible on an emergency plan? - Answer✔$1,000 Deductibe
The community becomes eligible for a regular plan: - Answer✔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? - Answer✔Overflow of inland or tidal water
What is the 2nd definition included in a flood? - Answer✔Unusual accumulation and run off of
surface waters
What is the 3rd definition included in a flood? - Answer✔Mud flows or mudslides in normally
dry land areas
4
