NC Adjuster License Practice Exam
questions and answers 2025\2026 A+
Grade
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
When a claims representative is collecting information from a third-party claimant, which of the
following is the information that should be obtained first?
- correct answer The nature and extent of the injuries or property damage claimed.
The Business Auto uses Symbol 7 to cover "specifically described autos" identified in the declarations.
An auto acquired during the policy period will only be covered:
- correct answer If the insured insures all of their vehicles with the company or it replaces a covered
auto..
, What coverage under the BOP automatically applies if a customer slips and falls on the named insured's
premises, regardless of legal liability?
- correct answer Medical expense coverage
When an insurer is called upon to defend a suit under a CGL policy, the amount that can be paid for the
defense costs is:
- correct answer Not limited
Any North Carolina lender in making or servicing real estate mortgage or deed of trust loans on one to
four family residences must accept a binder as proof of insurance. The binder presented to the lender
must include all of the following, EXCEPT
- correct answer A sworn statement that the insurance will be kept in force.
Which of the following statements is TRUE concerning Part A - Liability coverage on a standard Personal
Automobile policy?
- correct answer The coverage is provided only for accidents caused by those who are "insureds" under
the policy..
Which of the following is NOT a reason to purchase a Dwelling policy instead of a Homeowners policy?
- correct answer The Dwelling policy provides higher limits of liability than the Homeowners policy..
Which of the following is NOT excluded by Section II - Liability of the Business Automobile policy?
- correct answer Cost to defend the insured
The insured and her 18-year-old son, who lives in the insured's household, are crossing the street when
both of them are struck by a drunk driver. The Part B - Medical Payments coverage of the insured's
personal auto policy will:
- correct answer Provide coverage for both the insured and her son
All of the following are types of rehabilitative services provided under a workers' compensation policy,
EXCEPT:
- correct answer Substance abuse
questions and answers 2025\2026 A+
Grade
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
When a claims representative is collecting information from a third-party claimant, which of the
following is the information that should be obtained first?
- correct answer The nature and extent of the injuries or property damage claimed.
The Business Auto uses Symbol 7 to cover "specifically described autos" identified in the declarations.
An auto acquired during the policy period will only be covered:
- correct answer If the insured insures all of their vehicles with the company or it replaces a covered
auto..
, What coverage under the BOP automatically applies if a customer slips and falls on the named insured's
premises, regardless of legal liability?
- correct answer Medical expense coverage
When an insurer is called upon to defend a suit under a CGL policy, the amount that can be paid for the
defense costs is:
- correct answer Not limited
Any North Carolina lender in making or servicing real estate mortgage or deed of trust loans on one to
four family residences must accept a binder as proof of insurance. The binder presented to the lender
must include all of the following, EXCEPT
- correct answer A sworn statement that the insurance will be kept in force.
Which of the following statements is TRUE concerning Part A - Liability coverage on a standard Personal
Automobile policy?
- correct answer The coverage is provided only for accidents caused by those who are "insureds" under
the policy..
Which of the following is NOT a reason to purchase a Dwelling policy instead of a Homeowners policy?
- correct answer The Dwelling policy provides higher limits of liability than the Homeowners policy..
Which of the following is NOT excluded by Section II - Liability of the Business Automobile policy?
- correct answer Cost to defend the insured
The insured and her 18-year-old son, who lives in the insured's household, are crossing the street when
both of them are struck by a drunk driver. The Part B - Medical Payments coverage of the insured's
personal auto policy will:
- correct answer Provide coverage for both the insured and her son
All of the following are types of rehabilitative services provided under a workers' compensation policy,
EXCEPT:
- correct answer Substance abuse
