NC Adjuster Exam
NC Claims Adjuster Exam Questions with Correct
Detailed Answers UPDATED 2025
Inception/Expiration Date -Correct Answer ✔an insurance policy covers the insured
starting at 12:01am on the day on which coverage begins and expires at 12:01am on the
expiration day of the policy.
Occurrence Date -Correct Answer ✔Date of which the loss occurred
Identification of parties involved -Correct Answer ✔The loss report should include the
names and addresses of the parties involved in the loss, the names and addresses of any
injured person(s) and the names and addresses of any witness(s).
Policy Form/Number -Correct Answer ✔Identifies the type of coverage purchased (policy
form) and the policy number for the particular policy purchased by the insured.
Description of the Loss -Correct Answer ✔Information concerning how, when and where
the accident or loss happened is an essential element in any loss report.
Coverage -Correct Answer ✔Shows the type of coverage(s) purchased as well as the
limits of coverage purchased.
Damages - Special Compensatory damages -Correct Answer ✔Are amounts paid to
compensate the plaintiff for direct expenses such as medical treatment, lost wages (both
past and future), funeral expenses and rehabilitation expenses required because of
bodily injury. Special damages are paid for losses that can be determined and
documented. They are often referred to as "out-of-pocket" expenses.
NC Adjuster Exam
,NC Adjuster Exam
Damages - General Compensatory Damages -Correct Answer ✔Are paid for losses that
cannot be specifically measured and itemized in order to compensate the plaintiff for
things such as pain and suffering, loss of the use of an arm or leg, loss of vision, physical
disfigurement and/or loss of consortium.
Damages - Punitive Damages -Correct Answer ✔Are typically awarded to the plaintiff in
addition to compensatory damages when the defendants conduct has been especially
malicious. Punitive damages are awarded to punish the defendant and to deter others
from engaging in similar actions.
Unfair Claims Settlement Practices -Correct Answer ✔1. Knowingly misrepresenting
relevant facts or policy provisions relating to the coverage at issue. 2. Failing to
acknowledge with reasonable promptness communications pertaining to claims. 3.
Failing to adopt and implement reasonable standards for the prompt investigation of
claims. 4. Arbitrary and unreasonable refusal to pay claims. 5. Failing to affirm or deny
coverage of claims within a reasonable time after proof of loss has been completed. 6.
Not attempting in good faith to make prompt, fair and equitable claims settlement when
the insurer's liability has become reasonably clear. 7. Compelling insureds to institute
suits to recover amounts due under a policy by offering substantially less to settle
immediately. 8. Attempting to settle claims for less than the amount for which a
reasonable person would believe one was entitled based on written or printed
advertising material accompanying or made a part of an application. I. Attempting
settlement of claims on the basis of applications that were altered without notice to
knowledge of or consent of insureds.
Total Losses on Motor Vehicles/Miscellaneous Provisions -Correct Answer ✔1. If the
insurer and the claimant are unable to reach an agreement as to the value of the
vehicle, the insurer shall base any further settlement offer not only on the published
regional average value of similar vehicles, but also on the value of the vehicle in the local
market. 2. Local market value shall be determined by using either the local price of a
comparable vehicle or if no comparable vehicle can be found, quotations from at least
two qualified dealers within the local market area. Additionally, if the claimant
represents that the vehicle was in better than average condition, the insurer shall give
due consideration to the condition of the claimant's vehicle prior to the accident. 3.
NC Adjuster Exam
,NC Adjuster Exam
When a motor vehicle is damaged in an amount which equals or exceeds 75 percent of
the preaccident actual cash value, an insurer shall "total loss" the vehicle by paying the
claimant the preaccident value and in return, receiving possession of the legal title for
salvage purposes. 4. The insurer will be responsible for all reasonable towing and
storage charges until three days after the owner and the storage facility are notified in
writing that the insurer will no longer reimburse the owner or storage facility for storage
charges. 5. Loss and claims payments shall be mailed or otherwise delivered within 10
business days after the claim is settled.
After Market Parts -Correct Answer ✔An after market part is any part made by a non
original manufacturer.
Speculative Risk -Correct Answer ✔When there is a chance of gain as well as a chance of
loss. Insurance is not intended to protect against this type of risk.
Pure Risk -Correct Answer ✔When there is a chance of loss only.
Insurable Risk -Correct Answer ✔One that an insurance company is willing to accept.
Characteristics of Insurable Risk -Correct Answer ✔1. Low probability of loss occurring,
2. Less than catastrophic results, 3. The loss must be measurable, 4. The loss must be
significant, 5. The loss must be accidental and unintended.
Probability -Correct Answer ✔Measures the chance of an event occurring, it is the
measure of uncertainty (risk).
Law of Large Numbers (Law of Averages) -Correct Answer ✔Mathematical principle that
makes it possible to predict future losses based upon prior experience.
NC Adjuster Exam
, NC Adjuster Exam
Spread of Risk (Geographic Dispersion) -Correct Answer ✔Also used to decrease loss
probability. This process involves spreading the company's policies (exposures) over a
broad geographical area in order to avoid large losses in the vent of a catastrophic event.
An example is a hurricane.
Adverse Selection -Correct Answer ✔Adverse selection occurs when insureds with a high
risk of loss attempt to purchase insurance and are successful in obtaining insurance.
Perils -Correct Answer ✔Are the actual cause of loss such as a fire, theft, wind, hail, etc.
Hazards -Correct Answer ✔Increase the probability of a peril occurring. Bald tires on an
automobile increase the chance of a wreck happening. The tires are the hazard, the
wreck is the peril.
Property Insurance -Correct Answer ✔Indemnified (repays) a person or business with an
interest in the physical integrity of tangible property for its loss or the loss of income
produced by that property.
Casualty Insurance -Correct Answer ✔Provides protection to meet the unexpected costs
imposed by law due to acts that have caused bodily injury or property damage to
another individual. Included isn't he field of casualty (liability) insurance are automobile,
crime and surety bonds.
Private or Voluntary Insurance -Correct Answer ✔Portion of the insurance industry
where individuals seek coverage to meet recognized needs. These coverages are neither
required nor made available by government. An example would be collision insurance in
a personal automobile insurance policy.
Social Insurance -Correct Answer ✔Programs either required or made available by
government.
NC Adjuster Exam
NC Claims Adjuster Exam Questions with Correct
Detailed Answers UPDATED 2025
Inception/Expiration Date -Correct Answer ✔an insurance policy covers the insured
starting at 12:01am on the day on which coverage begins and expires at 12:01am on the
expiration day of the policy.
Occurrence Date -Correct Answer ✔Date of which the loss occurred
Identification of parties involved -Correct Answer ✔The loss report should include the
names and addresses of the parties involved in the loss, the names and addresses of any
injured person(s) and the names and addresses of any witness(s).
Policy Form/Number -Correct Answer ✔Identifies the type of coverage purchased (policy
form) and the policy number for the particular policy purchased by the insured.
Description of the Loss -Correct Answer ✔Information concerning how, when and where
the accident or loss happened is an essential element in any loss report.
Coverage -Correct Answer ✔Shows the type of coverage(s) purchased as well as the
limits of coverage purchased.
Damages - Special Compensatory damages -Correct Answer ✔Are amounts paid to
compensate the plaintiff for direct expenses such as medical treatment, lost wages (both
past and future), funeral expenses and rehabilitation expenses required because of
bodily injury. Special damages are paid for losses that can be determined and
documented. They are often referred to as "out-of-pocket" expenses.
NC Adjuster Exam
,NC Adjuster Exam
Damages - General Compensatory Damages -Correct Answer ✔Are paid for losses that
cannot be specifically measured and itemized in order to compensate the plaintiff for
things such as pain and suffering, loss of the use of an arm or leg, loss of vision, physical
disfigurement and/or loss of consortium.
Damages - Punitive Damages -Correct Answer ✔Are typically awarded to the plaintiff in
addition to compensatory damages when the defendants conduct has been especially
malicious. Punitive damages are awarded to punish the defendant and to deter others
from engaging in similar actions.
Unfair Claims Settlement Practices -Correct Answer ✔1. Knowingly misrepresenting
relevant facts or policy provisions relating to the coverage at issue. 2. Failing to
acknowledge with reasonable promptness communications pertaining to claims. 3.
Failing to adopt and implement reasonable standards for the prompt investigation of
claims. 4. Arbitrary and unreasonable refusal to pay claims. 5. Failing to affirm or deny
coverage of claims within a reasonable time after proof of loss has been completed. 6.
Not attempting in good faith to make prompt, fair and equitable claims settlement when
the insurer's liability has become reasonably clear. 7. Compelling insureds to institute
suits to recover amounts due under a policy by offering substantially less to settle
immediately. 8. Attempting to settle claims for less than the amount for which a
reasonable person would believe one was entitled based on written or printed
advertising material accompanying or made a part of an application. I. Attempting
settlement of claims on the basis of applications that were altered without notice to
knowledge of or consent of insureds.
Total Losses on Motor Vehicles/Miscellaneous Provisions -Correct Answer ✔1. If the
insurer and the claimant are unable to reach an agreement as to the value of the
vehicle, the insurer shall base any further settlement offer not only on the published
regional average value of similar vehicles, but also on the value of the vehicle in the local
market. 2. Local market value shall be determined by using either the local price of a
comparable vehicle or if no comparable vehicle can be found, quotations from at least
two qualified dealers within the local market area. Additionally, if the claimant
represents that the vehicle was in better than average condition, the insurer shall give
due consideration to the condition of the claimant's vehicle prior to the accident. 3.
NC Adjuster Exam
,NC Adjuster Exam
When a motor vehicle is damaged in an amount which equals or exceeds 75 percent of
the preaccident actual cash value, an insurer shall "total loss" the vehicle by paying the
claimant the preaccident value and in return, receiving possession of the legal title for
salvage purposes. 4. The insurer will be responsible for all reasonable towing and
storage charges until three days after the owner and the storage facility are notified in
writing that the insurer will no longer reimburse the owner or storage facility for storage
charges. 5. Loss and claims payments shall be mailed or otherwise delivered within 10
business days after the claim is settled.
After Market Parts -Correct Answer ✔An after market part is any part made by a non
original manufacturer.
Speculative Risk -Correct Answer ✔When there is a chance of gain as well as a chance of
loss. Insurance is not intended to protect against this type of risk.
Pure Risk -Correct Answer ✔When there is a chance of loss only.
Insurable Risk -Correct Answer ✔One that an insurance company is willing to accept.
Characteristics of Insurable Risk -Correct Answer ✔1. Low probability of loss occurring,
2. Less than catastrophic results, 3. The loss must be measurable, 4. The loss must be
significant, 5. The loss must be accidental and unintended.
Probability -Correct Answer ✔Measures the chance of an event occurring, it is the
measure of uncertainty (risk).
Law of Large Numbers (Law of Averages) -Correct Answer ✔Mathematical principle that
makes it possible to predict future losses based upon prior experience.
NC Adjuster Exam
, NC Adjuster Exam
Spread of Risk (Geographic Dispersion) -Correct Answer ✔Also used to decrease loss
probability. This process involves spreading the company's policies (exposures) over a
broad geographical area in order to avoid large losses in the vent of a catastrophic event.
An example is a hurricane.
Adverse Selection -Correct Answer ✔Adverse selection occurs when insureds with a high
risk of loss attempt to purchase insurance and are successful in obtaining insurance.
Perils -Correct Answer ✔Are the actual cause of loss such as a fire, theft, wind, hail, etc.
Hazards -Correct Answer ✔Increase the probability of a peril occurring. Bald tires on an
automobile increase the chance of a wreck happening. The tires are the hazard, the
wreck is the peril.
Property Insurance -Correct Answer ✔Indemnified (repays) a person or business with an
interest in the physical integrity of tangible property for its loss or the loss of income
produced by that property.
Casualty Insurance -Correct Answer ✔Provides protection to meet the unexpected costs
imposed by law due to acts that have caused bodily injury or property damage to
another individual. Included isn't he field of casualty (liability) insurance are automobile,
crime and surety bonds.
Private or Voluntary Insurance -Correct Answer ✔Portion of the insurance industry
where individuals seek coverage to meet recognized needs. These coverages are neither
required nor made available by government. An example would be collision insurance in
a personal automobile insurance policy.
Social Insurance -Correct Answer ✔Programs either required or made available by
government.
NC Adjuster Exam
