NC ADJUSTER LICENSE STUDY GUIDE NEWEST 2024- 2025 ACTUAL EXAM COMPLETE 270 QUESTIONS
AND CORRECT DETAILED ANSWERS
Comprehensive personal liability - (answer) applies liability coverage to activities or events occurring
both on and off the premises.
Ex. The mailman slips and falls in your driveway.
National Flood Insurance Program (NFIP) - (answer) A government-sponsored flood insurance program
for communities in designated areas.
Standard Fire Policy - (answer) Insurance against property damage due to fire or lightning
definitions section - (answer) the part of an insurance policy that explains specific terms used
throughout the policy, such as ?you? or ?your,? or ?family member?
risk - (answer) The chance of loss from an event that cannot be entirely controlled
hazard - (answer) A danger or risk.
Peril - (answer) cause of loss
4 Parts of Insurance Contract? - (answer) Declarations
Conditions
Exclusions
Insuring Agreement
basic form - (answer) a form of a homeowners policy that insures property against the basic perils Ex.
Fire, lightning, hail, wind damage
Special Peril/Open Peril (All Risk) - (answer) cover all perils except for those that are specifically
excluded. If it doesn't state its not covered then it is covered. **if there is a dispute over whether
something is covered it would be the insurance company's job to prove its not covered.
, NC ADJUSTER LICENSE STUDY GUIDE NEWEST 2024- 2025 ACTUAL EXAM COMPLETE 270 QUESTIONS
AND CORRECT DETAILED ANSWERS
broad form - (answer) A property and liability policy that provides coverage for landowners from
eighteen specified perils.
HO-4 policy - (answer) Renters policy. Personal property covered for broad perils.
HO-5 Comprehensive Form - (answer) insures the dwelling, other structures, and personal property
against direct physical loss to property
HO-2 - (answer) (broad form): covers the dwelling, other structures, and personal property on a named
perils basis
HO-3 (special form) - (answer) Covers the dwelling and other structures on a risk-of-direct-physical loss
basis. All direct physical losses are covered except those losses specifically excluded. Personal property is
covered on a named perils basis
Inland Marine Insurance - (answer) Insurance that covers many different classes of property that
typically involve an element of transportation.
Vicarious Liability - (answer) Legal responsibility placed on one person for the acts of another.
Absolute Liability - (answer) A type of liability that occurs due to extremely dangerous operations, such
as the use of explosives or working at extreme heights.
Business Income Insurance - (answer) designed to cover the loss of business income, expenses that
continue during the shutdown period, and extra expenses because of loss from a covered peril
Extra Expense Coverage Form - (answer) Covers additional expenses incurred by the insured business
to continue operations following a direct loss by a peril insured
Coverage B (Business Personal Property) - (answer) -Contents of Insured
-Business Inventory
AND CORRECT DETAILED ANSWERS
Comprehensive personal liability - (answer) applies liability coverage to activities or events occurring
both on and off the premises.
Ex. The mailman slips and falls in your driveway.
National Flood Insurance Program (NFIP) - (answer) A government-sponsored flood insurance program
for communities in designated areas.
Standard Fire Policy - (answer) Insurance against property damage due to fire or lightning
definitions section - (answer) the part of an insurance policy that explains specific terms used
throughout the policy, such as ?you? or ?your,? or ?family member?
risk - (answer) The chance of loss from an event that cannot be entirely controlled
hazard - (answer) A danger or risk.
Peril - (answer) cause of loss
4 Parts of Insurance Contract? - (answer) Declarations
Conditions
Exclusions
Insuring Agreement
basic form - (answer) a form of a homeowners policy that insures property against the basic perils Ex.
Fire, lightning, hail, wind damage
Special Peril/Open Peril (All Risk) - (answer) cover all perils except for those that are specifically
excluded. If it doesn't state its not covered then it is covered. **if there is a dispute over whether
something is covered it would be the insurance company's job to prove its not covered.
, NC ADJUSTER LICENSE STUDY GUIDE NEWEST 2024- 2025 ACTUAL EXAM COMPLETE 270 QUESTIONS
AND CORRECT DETAILED ANSWERS
broad form - (answer) A property and liability policy that provides coverage for landowners from
eighteen specified perils.
HO-4 policy - (answer) Renters policy. Personal property covered for broad perils.
HO-5 Comprehensive Form - (answer) insures the dwelling, other structures, and personal property
against direct physical loss to property
HO-2 - (answer) (broad form): covers the dwelling, other structures, and personal property on a named
perils basis
HO-3 (special form) - (answer) Covers the dwelling and other structures on a risk-of-direct-physical loss
basis. All direct physical losses are covered except those losses specifically excluded. Personal property is
covered on a named perils basis
Inland Marine Insurance - (answer) Insurance that covers many different classes of property that
typically involve an element of transportation.
Vicarious Liability - (answer) Legal responsibility placed on one person for the acts of another.
Absolute Liability - (answer) A type of liability that occurs due to extremely dangerous operations, such
as the use of explosives or working at extreme heights.
Business Income Insurance - (answer) designed to cover the loss of business income, expenses that
continue during the shutdown period, and extra expenses because of loss from a covered peril
Extra Expense Coverage Form - (answer) Covers additional expenses incurred by the insured business
to continue operations following a direct loss by a peril insured
Coverage B (Business Personal Property) - (answer) -Contents of Insured
-Business Inventory
