NORTH CAROLINA PROPERTY AND CASUALTY
INSURANCE EXAM 2025/2026 BANK COMPLETE
QUESTIONS AND ANSWERS ACCURATE
ACTUAL EXAM WITH FREQUENTLY TESTED
QUESTIONS AND STUDY GUIDE / EXPERT
VERIFIED FOR GUARANTEED PASS/ALREADY
GRADED A+
What must an insured include in the proof of loss? -
....ANSWER...An inventory of damaged property, the
value of the damaged property, and any other applicable
insurance.
How long does the insurer have to notify the insured if
they choose to repair or replace damaged property? -
....ANSWER...The insurer must notify the insured within
30 days of the proof of loss being submitted.
What is the significance of the term 'concurrency' in
insurance? - ....ANSWER...Concurrency refers to covering
,the same property against the same perils under multiple
insurance policies.
What is the difference between a friendly fire and a hostile
fire? - ....ANSWER...A friendly fire is intentionally lit and
contained, while a hostile fire is uncontrolled and poses a
risk.
What happens to the mortgagee's insurable interest if the
insured makes willful misrepresentations? -
....ANSWER...The mortgagee's insurable interest is still
protected until the required 10-day advance cancellation is
given.
What is the requirement for the insured regarding the
inspection of property after a loss? - ....ANSWER...The
insured must allow the insurance company to inspect the
property.
What does the term 'salvage value' refer to in insurance
settlements? - ....ANSWER...The agreed value at which
the insurer can take possession of the property.
,What is required from the insured in terms of cooperation
during the investigation of a claim? - ....ANSWER...The
insured must cooperate, including questioning under oath.
What is the maximum settlement amount in the event of a
total loss under an insurance policy? - ....ANSWER...The
settlement cannot exceed the face value of the policy,
regardless of the actual amount of the loss.
What is the Appraisal Method in claims settlement? -
....ANSWER...It is used when the insured and the company
cannot agree on the actual cash value (ACV) of property,
involving appraisers hired by each party and an umpire to
resolve differences.
What happens if the appraisers in the Appraisal Method
do not agree? - ....ANSWER...If the appraisers do not
agree, the umpire will rule on the differences, and the
agreement of any two parties will establish the actual cash
value of the property.
How does an individual's ownership percentage affect their
claim payment? - ....ANSWER...Recovery for a loss cannot
, exceed an individual's actual interest in the property; for
example, owning 25% of the property entitles them to only
25% of the claim payment.
What are some exclusions found in the Standard Fire
Policy? - ....ANSWER...Exclusions include accounts, bills,
currency, deeds, acts of war, losses from failure to protect
property, civil authority losses, increased hazards, and
coverage suspension for vacant buildings.
What is the difference between an unoccupied building
and a vacant building? - ....ANSWER...An unoccupied
building has contents but no tenants, while a vacant
building has neither contents nor tenants.
What is the purpose of endorsements attached to the
Standard Fire Policy? - ....ANSWER...Endorsements
improve marketability by broadening the perils insured
against without increasing the amount of coverage.
What does the Extended Coverage Endorsement (EC)
cover? - ....ANSWER...It covers direct loss for perils such
INSURANCE EXAM 2025/2026 BANK COMPLETE
QUESTIONS AND ANSWERS ACCURATE
ACTUAL EXAM WITH FREQUENTLY TESTED
QUESTIONS AND STUDY GUIDE / EXPERT
VERIFIED FOR GUARANTEED PASS/ALREADY
GRADED A+
What must an insured include in the proof of loss? -
....ANSWER...An inventory of damaged property, the
value of the damaged property, and any other applicable
insurance.
How long does the insurer have to notify the insured if
they choose to repair or replace damaged property? -
....ANSWER...The insurer must notify the insured within
30 days of the proof of loss being submitted.
What is the significance of the term 'concurrency' in
insurance? - ....ANSWER...Concurrency refers to covering
,the same property against the same perils under multiple
insurance policies.
What is the difference between a friendly fire and a hostile
fire? - ....ANSWER...A friendly fire is intentionally lit and
contained, while a hostile fire is uncontrolled and poses a
risk.
What happens to the mortgagee's insurable interest if the
insured makes willful misrepresentations? -
....ANSWER...The mortgagee's insurable interest is still
protected until the required 10-day advance cancellation is
given.
What is the requirement for the insured regarding the
inspection of property after a loss? - ....ANSWER...The
insured must allow the insurance company to inspect the
property.
What does the term 'salvage value' refer to in insurance
settlements? - ....ANSWER...The agreed value at which
the insurer can take possession of the property.
,What is required from the insured in terms of cooperation
during the investigation of a claim? - ....ANSWER...The
insured must cooperate, including questioning under oath.
What is the maximum settlement amount in the event of a
total loss under an insurance policy? - ....ANSWER...The
settlement cannot exceed the face value of the policy,
regardless of the actual amount of the loss.
What is the Appraisal Method in claims settlement? -
....ANSWER...It is used when the insured and the company
cannot agree on the actual cash value (ACV) of property,
involving appraisers hired by each party and an umpire to
resolve differences.
What happens if the appraisers in the Appraisal Method
do not agree? - ....ANSWER...If the appraisers do not
agree, the umpire will rule on the differences, and the
agreement of any two parties will establish the actual cash
value of the property.
How does an individual's ownership percentage affect their
claim payment? - ....ANSWER...Recovery for a loss cannot
, exceed an individual's actual interest in the property; for
example, owning 25% of the property entitles them to only
25% of the claim payment.
What are some exclusions found in the Standard Fire
Policy? - ....ANSWER...Exclusions include accounts, bills,
currency, deeds, acts of war, losses from failure to protect
property, civil authority losses, increased hazards, and
coverage suspension for vacant buildings.
What is the difference between an unoccupied building
and a vacant building? - ....ANSWER...An unoccupied
building has contents but no tenants, while a vacant
building has neither contents nor tenants.
What is the purpose of endorsements attached to the
Standard Fire Policy? - ....ANSWER...Endorsements
improve marketability by broadening the perils insured
against without increasing the amount of coverage.
What does the Extended Coverage Endorsement (EC)
cover? - ....ANSWER...It covers direct loss for perils such
