NC ADJUSTER LICENSING EXAM
QUESTIONS AND CORRECT ANSWERS|
ACCURATE REAL EXAM WITH
FREQUENTLY TESTED QUESTIONS AND
RATIONALE|ALREADY A
GRADED|GUARANTEED PASS|LATEST
UPDATE 2025.
During a heavy thunderstorm, lightning strikes a tree
right outside Carl's house, which splinters and falls onto
Carl's roof. The room under the roof floods with water,
damaging Carl's expensive flooring. Carl's roof damage
would be considered: -CORRECT ANSWER a direct loss.
,Which of the following does NOT constitute a legal
termination of a contract offer? -CORRECT ANSWER Request
for more information
The law of large numbers states that: -CORRECT ANSWER
insuring a greater number of units increases the accuracy
of the insurer's loss predictions.
Risk reduction: -CORRECT ANSWER mitigates risk.
Natalie's brakes have been squealing for several months.
Every time she drives her car, she's reminded that she
needs to have them replaced, but she forgets all about it
as soon as she gets out of the car. Natalie's brakes can be
considered a: -CORRECT ANSWER physical hazard
An economic device used to protect against the risk of
realizing unforeseen and extraordinary financial loss is
called: -CORRECT ANSWER Insurance
,Scott is visiting his insurance agent's office and applying
for auto insurance on his new car. The auto policy that
the agent drafts will be based on Scott's___________. -
CORRECT ANSWER representations
Jim owns a home valued at $187,500, but he only has a
$100,000 homeowner's policy and is underinsured.
During a storm, lightning strikes Jim's home causing
$45,000 in damages. The insurer decides to invoke a
coinsurance penalty. How much will Jim be required to
pay for the penalty? -CORRECT ANSWER $15,000
Marcel's home is valued at $495,000 and he carries a
homeowner's policy with a limit of $400,000 and a 2%
deductible. During an ice storm, the weight of the ice on
a tree in Marcel's front yard causes a large limb to break
off and fall on his house, causing $27,200 in damage.
How much will Marcel receive in his settlement for this
claim? -CORRECT ANSWER $19,200
, Roxanne bought her 50" TV four years ago for $2,400.
During a storm, her house was struck by lightning and
the current fried her TV. The TV depreciates at $400 per
year and a similar TV costs $1,200 today. Assuming
Roxanne's homeowners policy has a replacement cost
endorsement for personal property, how much can she
expect to receive in indemnification for her damaged TV?
-CORRECT ANSWER $1,200
Frank purchases a homeowners policy worth $700,000
with a 4% deductible. A few months later, a heavy
hailstorm destroys his roof, porch, and windows, causing
$50,000 in damages. Frank should expect __________
from the insurance company to pay for the damages. -
CORRECT ANSWER $22,000
How is actual cash value calculated? -CORRECT ANSWER
Replacement cost minus total depreciation
Bill has bought $175,000 in insurance coverage on his
$300,000 home. Which of the following statements
QUESTIONS AND CORRECT ANSWERS|
ACCURATE REAL EXAM WITH
FREQUENTLY TESTED QUESTIONS AND
RATIONALE|ALREADY A
GRADED|GUARANTEED PASS|LATEST
UPDATE 2025.
During a heavy thunderstorm, lightning strikes a tree
right outside Carl's house, which splinters and falls onto
Carl's roof. The room under the roof floods with water,
damaging Carl's expensive flooring. Carl's roof damage
would be considered: -CORRECT ANSWER a direct loss.
,Which of the following does NOT constitute a legal
termination of a contract offer? -CORRECT ANSWER Request
for more information
The law of large numbers states that: -CORRECT ANSWER
insuring a greater number of units increases the accuracy
of the insurer's loss predictions.
Risk reduction: -CORRECT ANSWER mitigates risk.
Natalie's brakes have been squealing for several months.
Every time she drives her car, she's reminded that she
needs to have them replaced, but she forgets all about it
as soon as she gets out of the car. Natalie's brakes can be
considered a: -CORRECT ANSWER physical hazard
An economic device used to protect against the risk of
realizing unforeseen and extraordinary financial loss is
called: -CORRECT ANSWER Insurance
,Scott is visiting his insurance agent's office and applying
for auto insurance on his new car. The auto policy that
the agent drafts will be based on Scott's___________. -
CORRECT ANSWER representations
Jim owns a home valued at $187,500, but he only has a
$100,000 homeowner's policy and is underinsured.
During a storm, lightning strikes Jim's home causing
$45,000 in damages. The insurer decides to invoke a
coinsurance penalty. How much will Jim be required to
pay for the penalty? -CORRECT ANSWER $15,000
Marcel's home is valued at $495,000 and he carries a
homeowner's policy with a limit of $400,000 and a 2%
deductible. During an ice storm, the weight of the ice on
a tree in Marcel's front yard causes a large limb to break
off and fall on his house, causing $27,200 in damage.
How much will Marcel receive in his settlement for this
claim? -CORRECT ANSWER $19,200
, Roxanne bought her 50" TV four years ago for $2,400.
During a storm, her house was struck by lightning and
the current fried her TV. The TV depreciates at $400 per
year and a similar TV costs $1,200 today. Assuming
Roxanne's homeowners policy has a replacement cost
endorsement for personal property, how much can she
expect to receive in indemnification for her damaged TV?
-CORRECT ANSWER $1,200
Frank purchases a homeowners policy worth $700,000
with a 4% deductible. A few months later, a heavy
hailstorm destroys his roof, porch, and windows, causing
$50,000 in damages. Frank should expect __________
from the insurance company to pay for the damages. -
CORRECT ANSWER $22,000
How is actual cash value calculated? -CORRECT ANSWER
Replacement cost minus total depreciation
Bill has bought $175,000 in insurance coverage on his
$300,000 home. Which of the following statements
