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NC CLAIMS ADJUSTER EXAM 2025 UPDATED
ACTUAL EXAM WITH CORRECT SOLUTIONS.
Frank owned a home that was destroyed by a hurricane. Both
ABC and XYZ Banks were listed as additional interests on his
homeowner policy. The insurance company will make a
payment to:
A. The first mortgagee, ABC
B. The Insured
C. Jointly to ABC and XYZ
D. All listed interests - correct answer- D. All listed interests
Remember that the insurer is not responsible to know the
degrees of interest. In the event of a loss, one payment is made
by the insurer and it is up to the additional interests on working
out their share.
Insurance applies separately to each insured as if other
insureds did not exist. This is defined as:
A. Severability
B. Conditional
C. Warranty
D. None of the above - correct answer- A. Severability
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Property insurance policies usually contain a(n) __________
clause, stating the insured cannot dump damaged property on
the insurer and demand its full value:
A. Pro Rata
B. Abandonment
C. Liberalization
D. All of the above - correct answer- B. Abandonment
A(n) __________ is one wherein economic loss would be
suffered from an adverse happening to the subject:
A. Conditional Contract
B. Personal Contract
C. Economic Contract
D. Insurable Interest - correct answer- D. Insurable Interest
States that if the insurer adopts a revision which would broaden
coverage without additional premium within some period of time
prior to the policy period or during the policy period, the insured
receives the benefit of such broadened coverage.
A. Cancellation Clause
B. Policy Period
C. Pro Rata
D. Liberalization - correct answer- D. Liberalization
The time frame is typically 60 days.
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The __________ states that when there is an unbroken
connection between an occurrence and damage that grows out
of the occurrence, then the resultant damage is all a part of the
occurrence.
A. Doctrine of Proximate Cause
B. Doctrine of Perils & Hazards
C. Insurance Policy Handbook
D. Doctrine of Property Insurance - correct answer- A. Doctrine
of Proximate Cause
For example, if a property insurance policy covers the peril of
fire but further damage is caused by smoke, water used to
extinguish, and the process of moving property away - fire is
considered to be the *proximate cause* of all of the damage.
The Loss Settlement Valuation that subtracts an allowance for
depreciation is defined as?
A. Actual Cash Value
B. Replacement Cost
C. "Old for New"
D. None of the Above - correct answer- A. Actual Cash Value
A policy condition, either based on information in the insured's
application or inserted by the insurer, is defined as:
A. Warranty
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B. Misrepresentation
C. Concealment
D. None of the Above - correct answer- A. Warranty
The following are basic characteristics of a property or liability
insurance contract, except:
A. Personal Contract
B. Conditional Contract
C. Loss of Settlement Contract
D. Contract of Adhesion - correct answer- C. Loss of Settlement
Contract
The Insurer's responsibility to pay for a property loss may be
conditioned on the insured having used reasonable means to
avoid the loss, to protect the property against further loss, and
to give the insurer proof of the loss is defined as?
A. Conditional Contract
B. Adhesion Contract
C. Indemnity Contract
D. All of the Above - correct answer- A. Conditional Contract
"may be conditioned"
Which of the following is not one of the "Thresholds" in the "No-
Fault" law?
NC CLAIMS ADJUSTER EXAM 2025 UPDATED
ACTUAL EXAM WITH CORRECT SOLUTIONS.
Frank owned a home that was destroyed by a hurricane. Both
ABC and XYZ Banks were listed as additional interests on his
homeowner policy. The insurance company will make a
payment to:
A. The first mortgagee, ABC
B. The Insured
C. Jointly to ABC and XYZ
D. All listed interests - correct answer- D. All listed interests
Remember that the insurer is not responsible to know the
degrees of interest. In the event of a loss, one payment is made
by the insurer and it is up to the additional interests on working
out their share.
Insurance applies separately to each insured as if other
insureds did not exist. This is defined as:
A. Severability
B. Conditional
C. Warranty
D. None of the above - correct answer- A. Severability
,2 | Page
Property insurance policies usually contain a(n) __________
clause, stating the insured cannot dump damaged property on
the insurer and demand its full value:
A. Pro Rata
B. Abandonment
C. Liberalization
D. All of the above - correct answer- B. Abandonment
A(n) __________ is one wherein economic loss would be
suffered from an adverse happening to the subject:
A. Conditional Contract
B. Personal Contract
C. Economic Contract
D. Insurable Interest - correct answer- D. Insurable Interest
States that if the insurer adopts a revision which would broaden
coverage without additional premium within some period of time
prior to the policy period or during the policy period, the insured
receives the benefit of such broadened coverage.
A. Cancellation Clause
B. Policy Period
C. Pro Rata
D. Liberalization - correct answer- D. Liberalization
The time frame is typically 60 days.
,3 | Page
The __________ states that when there is an unbroken
connection between an occurrence and damage that grows out
of the occurrence, then the resultant damage is all a part of the
occurrence.
A. Doctrine of Proximate Cause
B. Doctrine of Perils & Hazards
C. Insurance Policy Handbook
D. Doctrine of Property Insurance - correct answer- A. Doctrine
of Proximate Cause
For example, if a property insurance policy covers the peril of
fire but further damage is caused by smoke, water used to
extinguish, and the process of moving property away - fire is
considered to be the *proximate cause* of all of the damage.
The Loss Settlement Valuation that subtracts an allowance for
depreciation is defined as?
A. Actual Cash Value
B. Replacement Cost
C. "Old for New"
D. None of the Above - correct answer- A. Actual Cash Value
A policy condition, either based on information in the insured's
application or inserted by the insurer, is defined as:
A. Warranty
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B. Misrepresentation
C. Concealment
D. None of the Above - correct answer- A. Warranty
The following are basic characteristics of a property or liability
insurance contract, except:
A. Personal Contract
B. Conditional Contract
C. Loss of Settlement Contract
D. Contract of Adhesion - correct answer- C. Loss of Settlement
Contract
The Insurer's responsibility to pay for a property loss may be
conditioned on the insured having used reasonable means to
avoid the loss, to protect the property against further loss, and
to give the insurer proof of the loss is defined as?
A. Conditional Contract
B. Adhesion Contract
C. Indemnity Contract
D. All of the Above - correct answer- A. Conditional Contract
"may be conditioned"
Which of the following is not one of the "Thresholds" in the "No-
Fault" law?
