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NC ADJUSTER LICENSE EXAM PREP MATERIAL NEWEST
2025/2026 NEWEST ACTUAL EXAM WITH COMPLETE
QUESTIONS AND VERIFIED ANSWERS |ALREADY GRADED
A+|
Which of the following statements about the Standard Fire Policy
is correct?
I. A covered fire must be hostile, not friendly.
II. Lightning includes artificially generated electrical current. -
ANSWER-I only
Gavin operates a small manufacturing plant and is covered under
a Commercial Property Business Income form. Under which of
the following scenarios will Gavin be covered? - ANSWER-His
loss of profit while out of business as a result of a fire loss
The retroactive date on a claims-made CGL form specifies: -
ANSWER-That losses occurring before the date will not be
covered by the policy.
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A leased vehicle is considered to be a covered auto under the
personal auto policy (PAP) if it is a private passenger auto leased
for at least: - ANSWER-6 consecutive months
An insured's boat is struck by another boat. He and his family are
injured. His boat sinks because of the damage. An investigation
determines that the party that caused the accident is not insured.
If the insured carries a watercraft policy, what coverages would
apply? - ANSWER-Uninsured boater's coverage and hull
insurance
Mark is injured at work in a state that provides a TTD benefit at 66
2/3%, the state minimum is $40 and the state maximum is $540.
The waiting period is 3 days and the retroactive period is 15 days.
Which of the following is Mark's TTD benefit if he earns $20 per
hour and usually works a 40-hour week. Mark is injured on July
14th and does not return to work until September 3rd. Which of
the following is the amount of TTD benefit he would have
received? - ANSWER-$3,809.50.
Mr. Vickers lives close to a river that has, on occasion, flooded.
On Friday morning he is watching the weather station and notes
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that there is a flood warning in his area. He calls his agent and
asks the agent to bind flood coverage immediately. Which of the
following is true? - ANSWER-The application for coverage
requires a 30-day waiting period before coverage applies. .
What is an administrator's bond? - ANSWER-A bond required by
the court of the administrator of the estate of the deceased
Section II of the Business Auto policy provides the details of the
insurer's "duty to defend" the insured in a lawsuit. This duty is
more broad than the insurer's responsibility to pay any damages
for which the insured is liable. Which of the following describes
this broadened duty on the BAP? - ANSWER-The BAP "duty to
defend" extends to providing a defense against fraudulent claims.
.
Spencer is covered under a standard Personal Automobile policy
with a policy inception date of October 15th. Additionally, the
policy will expire on October 15th of the current year. Spencer
contacts his agent on October 7th and asks to have an new
endorsement added to his policy. The agent agrees, adds the
coverage the same day, and informs Spencer that there will be an
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additional premium of $20 per month charged. When will the
adjustment of premium be effective for Spencer? - ANSWER-
October 7th
A blanket employee dishonesty bond will: - ANSWER-Does not
name the individuals.
Under what circumstances does an insurer allow the transfer of
an insured's rights and duties under a Commercial Package
Policy without the permission of the insurer? - ANSWER-When
the named insured dies
An insured has purchased a DP-3 policy to cover his dwelling that
is valued at a replacement cost of $100,000. He insures it for
$60,000 and later suffers a $30,000 fire loss. Which of the
following amounts will be paid by the policy (if no deductible form
is attached)? - ANSWER-$22,500
The insuring agreements of an Equipment Breakdown policy,
provides coverage for: - ANSWER-First party coverages and
property damage to property of others
NC ADJUSTER LICENSE EXAM PREP MATERIAL NEWEST
2025/2026 NEWEST ACTUAL EXAM WITH COMPLETE
QUESTIONS AND VERIFIED ANSWERS |ALREADY GRADED
A+|
Which of the following statements about the Standard Fire Policy
is correct?
I. A covered fire must be hostile, not friendly.
II. Lightning includes artificially generated electrical current. -
ANSWER-I only
Gavin operates a small manufacturing plant and is covered under
a Commercial Property Business Income form. Under which of
the following scenarios will Gavin be covered? - ANSWER-His
loss of profit while out of business as a result of a fire loss
The retroactive date on a claims-made CGL form specifies: -
ANSWER-That losses occurring before the date will not be
covered by the policy.
, Page |2
A leased vehicle is considered to be a covered auto under the
personal auto policy (PAP) if it is a private passenger auto leased
for at least: - ANSWER-6 consecutive months
An insured's boat is struck by another boat. He and his family are
injured. His boat sinks because of the damage. An investigation
determines that the party that caused the accident is not insured.
If the insured carries a watercraft policy, what coverages would
apply? - ANSWER-Uninsured boater's coverage and hull
insurance
Mark is injured at work in a state that provides a TTD benefit at 66
2/3%, the state minimum is $40 and the state maximum is $540.
The waiting period is 3 days and the retroactive period is 15 days.
Which of the following is Mark's TTD benefit if he earns $20 per
hour and usually works a 40-hour week. Mark is injured on July
14th and does not return to work until September 3rd. Which of
the following is the amount of TTD benefit he would have
received? - ANSWER-$3,809.50.
Mr. Vickers lives close to a river that has, on occasion, flooded.
On Friday morning he is watching the weather station and notes
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that there is a flood warning in his area. He calls his agent and
asks the agent to bind flood coverage immediately. Which of the
following is true? - ANSWER-The application for coverage
requires a 30-day waiting period before coverage applies. .
What is an administrator's bond? - ANSWER-A bond required by
the court of the administrator of the estate of the deceased
Section II of the Business Auto policy provides the details of the
insurer's "duty to defend" the insured in a lawsuit. This duty is
more broad than the insurer's responsibility to pay any damages
for which the insured is liable. Which of the following describes
this broadened duty on the BAP? - ANSWER-The BAP "duty to
defend" extends to providing a defense against fraudulent claims.
.
Spencer is covered under a standard Personal Automobile policy
with a policy inception date of October 15th. Additionally, the
policy will expire on October 15th of the current year. Spencer
contacts his agent on October 7th and asks to have an new
endorsement added to his policy. The agent agrees, adds the
coverage the same day, and informs Spencer that there will be an
, Page |4
additional premium of $20 per month charged. When will the
adjustment of premium be effective for Spencer? - ANSWER-
October 7th
A blanket employee dishonesty bond will: - ANSWER-Does not
name the individuals.
Under what circumstances does an insurer allow the transfer of
an insured's rights and duties under a Commercial Package
Policy without the permission of the insurer? - ANSWER-When
the named insured dies
An insured has purchased a DP-3 policy to cover his dwelling that
is valued at a replacement cost of $100,000. He insures it for
$60,000 and later suffers a $30,000 fire loss. Which of the
following amounts will be paid by the policy (if no deductible form
is attached)? - ANSWER-$22,500
The insuring agreements of an Equipment Breakdown policy,
provides coverage for: - ANSWER-First party coverages and
property damage to property of others
