NC Adjuster License Practice Exam Updates
2025|2026 Questions and Correct answers
Graded A+|Assured Success
Manny is purchasing a Commercial Property policy with a Business Income form included.
Manny can select from any of the following as a method to provide coverage, while avoiding
the coinsurance requirement, EXCEPT: - CORRECT ANSWER -The maximum monthly
limit of indemnity optional coverage
,The traditional definition of actual cash value (ACV) is: - CORRECT ANSWER -
Replacement cost minus depreciation
Sam and Dan are working to clean out the gutters around the roof on Sam's house. Sam and
Dan are standing at the top of separate ladders that are propped against the side of Sam's
house, when Dan's ladder begins to wobble and ultimately falls into Sam's ladder. Both men
and their ladders crash to the ground. Whose injuries will be covered by Sam's Homeowners
policy under Coverage E - Personal Liability? - CORRECT ANSWER -Only Dan's injuries
would be covered
Torts that can be covered by insurance policies include all of the following, EXCEPT: -
CORRECT ANSWER -Intentional torts purposely committed to cause harm to another.
The insured has a $1,000,000 personal umbrella policy with a $5,000 retention limit. For a
$7,000 liability loss not covered under the insured's personal auto policy, but covered under the
umbrella policy, the insurance company would pay: - CORRECT ANSWER -$2,000
All of the following is considered an "insured" under a CGL policy, EXCEPT: - CORRECT
ANSWER -Lawyers of the named insured
What specific type of liability policy gives an owner protection against liability claims arising out
of the acts of its independent contractors? - CORRECT ANSWER -Owners and
Contractors Protective Liability Policy.
, Which of the following would be eligible for coverage under a Businessowners policy? -
CORRECT ANSWER -A small retail store
Which of the following is NOT a correct statement in determining the cost of a "comparable
automobile" when a physical damage loss has a occurred? - CORRECT ANSWER -The
cost of a comparable automobile as determined by a computerized automobile valuation
service that produces statistically valid fair market values within the United States market
All of the following statements are TRUE of North Carolina automobile liability policies, EXCEPT
- CORRECT ANSWER -If the insured carries limits greater than the minimum financial
responsibility limits required by state law, they are not required to carry
Uninsured/Underinsured Motorists coverage.
The basic limit for Coverage F -- Medical Payments of the standard Homeowners forms is: -
CORRECT ANSWER -$1,000 per person
Oliver Dogwood was in an auto accident which destroyed his car. While investigating the
accident, Adjuster Doright found that Mr. Dogwood paid $1,000 for the vehicle. After checking
with others he found the same vehicle with an asking price of $1,700, a retail price of $2,150
and a dealer price of $1,750. What amount will Mr. Dogwood receive? - CORRECT
ANSWER -$2,150
2025|2026 Questions and Correct answers
Graded A+|Assured Success
Manny is purchasing a Commercial Property policy with a Business Income form included.
Manny can select from any of the following as a method to provide coverage, while avoiding
the coinsurance requirement, EXCEPT: - CORRECT ANSWER -The maximum monthly
limit of indemnity optional coverage
,The traditional definition of actual cash value (ACV) is: - CORRECT ANSWER -
Replacement cost minus depreciation
Sam and Dan are working to clean out the gutters around the roof on Sam's house. Sam and
Dan are standing at the top of separate ladders that are propped against the side of Sam's
house, when Dan's ladder begins to wobble and ultimately falls into Sam's ladder. Both men
and their ladders crash to the ground. Whose injuries will be covered by Sam's Homeowners
policy under Coverage E - Personal Liability? - CORRECT ANSWER -Only Dan's injuries
would be covered
Torts that can be covered by insurance policies include all of the following, EXCEPT: -
CORRECT ANSWER -Intentional torts purposely committed to cause harm to another.
The insured has a $1,000,000 personal umbrella policy with a $5,000 retention limit. For a
$7,000 liability loss not covered under the insured's personal auto policy, but covered under the
umbrella policy, the insurance company would pay: - CORRECT ANSWER -$2,000
All of the following is considered an "insured" under a CGL policy, EXCEPT: - CORRECT
ANSWER -Lawyers of the named insured
What specific type of liability policy gives an owner protection against liability claims arising out
of the acts of its independent contractors? - CORRECT ANSWER -Owners and
Contractors Protective Liability Policy.
, Which of the following would be eligible for coverage under a Businessowners policy? -
CORRECT ANSWER -A small retail store
Which of the following is NOT a correct statement in determining the cost of a "comparable
automobile" when a physical damage loss has a occurred? - CORRECT ANSWER -The
cost of a comparable automobile as determined by a computerized automobile valuation
service that produces statistically valid fair market values within the United States market
All of the following statements are TRUE of North Carolina automobile liability policies, EXCEPT
- CORRECT ANSWER -If the insured carries limits greater than the minimum financial
responsibility limits required by state law, they are not required to carry
Uninsured/Underinsured Motorists coverage.
The basic limit for Coverage F -- Medical Payments of the standard Homeowners forms is: -
CORRECT ANSWER -$1,000 per person
Oliver Dogwood was in an auto accident which destroyed his car. While investigating the
accident, Adjuster Doright found that Mr. Dogwood paid $1,000 for the vehicle. After checking
with others he found the same vehicle with an asking price of $1,700, a retail price of $2,150
and a dealer price of $1,750. What amount will Mr. Dogwood receive? - CORRECT
ANSWER -$2,150
