NC Claims Adjuster Exam Study
Questions with correct Answers 2025/2026
A+ Graded.
Liability Insurance PAP (Part A) - ANS-Pays all the sums 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 - ANS-A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
Certificate of Insurance (COI) - ANS-A document that proves the existence of insurance
coverage
Occurrence - ANS-Something that continue to happen and may cause injury later on.
Accident - ANS-A sudden unforseen and unintended one time event
Assumption of risk - ANS-An individual who is aware of the potential risk involved and chose to
expose themselves to it.
Comparative negligence - ANS-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 - ANS-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? - ANS-North Carolina
Negligence - ANS-Failure to do (or not do) what a reasonable prudent person would or would
not have done in a similar instance.
,Temporary Substitute Automobile - ANS-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? - ANS-A dealership loans an
insured a vehicle to drive while their car is getting fixed.
Non Owned Automobile - ANS-Not owned by the named insured or any relative.
What is an example of an Non Owned Automobile? - ANS-An insured borrows a neighbors car.
If an additional vehicle is not reported to the insurer within 30 days: - ANS-No coverage will
apply to the added vehicle.
If a vehicle is added to an existing policy (In addition to): - ANS-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: - ANS-Part D (Comprehensive and
Collision Coverage) will not apply to the replacement vehicle.
A new vehicle that replaces another vehicle will: - ANS-Have the same coverages as the old
vehicle if the named insured request to insure it within 30 days of becoming the owners.
Insured - ANS-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 - ANS-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: - ANS-Hull insurance for damage to the insured boat
itself
2nd Coverage for watercraft or yacht are: - ANS-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? - ANS-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? -
ANS-45 days
Elevation certificates - ANS-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: - ANS-30 days after receipt of the coverage
application and the premium payment.
The general property form on flood insurance is used to: - ANS-Insure larger residential
structures and non residential buildings.
The dwellings form on a flood insurance plan is: - ANS-Used to ensure residential property of
no more than 4 units and the contents
Flood insurance is available in 2 forms, what are they? - ANS-1. Dwelling
2. General property
The deductible for an emergency plan applies: - ANS-Separately to the building loss and
contents if purchased on a per occurrence basis.
How much is the deductible on an emergency plan? - ANS-$1,000 Deductibe
The community becomes eligible for a regular plan: - ANS-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? - ANS-Overflow of inland or tidal water
What is the 2nd definition included in a flood? - ANS-Unusual accumulation and run off of
surface waters
What is the 3rd definition included in a flood? - ANS-Mud flows or mudslides in normally dry
land areas
What is the 4th definition included in a flood? - ANS-Abnormal flood related erosion of
shorelines
What is a flood? - ANS-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? - ANS-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? - ANS-Collect Premiums
What is the 3rd thing the "write your own" program will allow? - ANS-Keep percentage of
premiums to cover expenses and profit.
What is the 4th thing the "write you own program will allow? - ANS-Invest the rest of the profit to
provide funds to pay claims.
Questions with correct Answers 2025/2026
A+ Graded.
Liability Insurance PAP (Part A) - ANS-Pays all the sums 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 - ANS-A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
Certificate of Insurance (COI) - ANS-A document that proves the existence of insurance
coverage
Occurrence - ANS-Something that continue to happen and may cause injury later on.
Accident - ANS-A sudden unforseen and unintended one time event
Assumption of risk - ANS-An individual who is aware of the potential risk involved and chose to
expose themselves to it.
Comparative negligence - ANS-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 - ANS-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? - ANS-North Carolina
Negligence - ANS-Failure to do (or not do) what a reasonable prudent person would or would
not have done in a similar instance.
,Temporary Substitute Automobile - ANS-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? - ANS-A dealership loans an
insured a vehicle to drive while their car is getting fixed.
Non Owned Automobile - ANS-Not owned by the named insured or any relative.
What is an example of an Non Owned Automobile? - ANS-An insured borrows a neighbors car.
If an additional vehicle is not reported to the insurer within 30 days: - ANS-No coverage will
apply to the added vehicle.
If a vehicle is added to an existing policy (In addition to): - ANS-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: - ANS-Part D (Comprehensive and
Collision Coverage) will not apply to the replacement vehicle.
A new vehicle that replaces another vehicle will: - ANS-Have the same coverages as the old
vehicle if the named insured request to insure it within 30 days of becoming the owners.
Insured - ANS-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 - ANS-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: - ANS-Hull insurance for damage to the insured boat
itself
2nd Coverage for watercraft or yacht are: - ANS-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? - ANS-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? -
ANS-45 days
Elevation certificates - ANS-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: - ANS-30 days after receipt of the coverage
application and the premium payment.
The general property form on flood insurance is used to: - ANS-Insure larger residential
structures and non residential buildings.
The dwellings form on a flood insurance plan is: - ANS-Used to ensure residential property of
no more than 4 units and the contents
Flood insurance is available in 2 forms, what are they? - ANS-1. Dwelling
2. General property
The deductible for an emergency plan applies: - ANS-Separately to the building loss and
contents if purchased on a per occurrence basis.
How much is the deductible on an emergency plan? - ANS-$1,000 Deductibe
The community becomes eligible for a regular plan: - ANS-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? - ANS-Overflow of inland or tidal water
What is the 2nd definition included in a flood? - ANS-Unusual accumulation and run off of
surface waters
What is the 3rd definition included in a flood? - ANS-Mud flows or mudslides in normally dry
land areas
What is the 4th definition included in a flood? - ANS-Abnormal flood related erosion of
shorelines
What is a flood? - ANS-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? - ANS-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? - ANS-Collect Premiums
What is the 3rd thing the "write your own" program will allow? - ANS-Keep percentage of
premiums to cover expenses and profit.
What is the 4th thing the "write you own program will allow? - ANS-Invest the rest of the profit to
provide funds to pay claims.
