NC Adjuster prep
NC Adjuster prep Exam Questions and
Answers
Question 1
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.
Question 2
Which of the following does NOT constitute a legal termination of a contract offer?
Correct Answer
Request for more information
Question 3
The law of large numbers states that:
Correct Answer
insuring a greater number of units increases the accuracy of the insurer's loss
predictions.
Question 4
Risk reduction:
Correct Answer
mitigates risk.
Page 1 of 23
, NC Adjuster prep
Question 5
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
Question 6
An economic device used to protect against the risk of realizing unforeseen and
extraordinary financial loss is called:
Correct Answer
Insurance
Question 7
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
Question 8
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
Page 2 of 23
, NC Adjuster prep
Question 9
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
Question 10
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
Question 11
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
Question 12
How is actual cash value calculated?
Correct Answer
Replacement cost minus total depreciation
Page 3 of 23
NC Adjuster prep Exam Questions and
Answers
Question 1
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.
Question 2
Which of the following does NOT constitute a legal termination of a contract offer?
Correct Answer
Request for more information
Question 3
The law of large numbers states that:
Correct Answer
insuring a greater number of units increases the accuracy of the insurer's loss
predictions.
Question 4
Risk reduction:
Correct Answer
mitigates risk.
Page 1 of 23
, NC Adjuster prep
Question 5
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
Question 6
An economic device used to protect against the risk of realizing unforeseen and
extraordinary financial loss is called:
Correct Answer
Insurance
Question 7
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
Question 8
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
Page 2 of 23
, NC Adjuster prep
Question 9
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
Question 10
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
Question 11
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
Question 12
How is actual cash value calculated?
Correct Answer
Replacement cost minus total depreciation
Page 3 of 23
