North Carolina Adjuster Exam questions and
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant Download Pdf
1. Which type of insurance policy provides coverage for both
property damage and bodily injury caused by the insured?
A. Health insurance
B. Liability insurance
C. Property insurance
D. Workers’ compensation
Liability insurance covers damages or injuries caused by the insured to
others, including both bodily injury and property damage.
2. In North Carolina, which of the following is required to act as a
licensed adjuster?
A. College degree
B. State license
C. Employer sponsorship
D. Federal registration
Adjusters must be licensed by the state to legally investigate and settle
claims.
3. What does an adjuster primarily do?
A. Sell insurance policies
B. Investigate and settle claims
C. Write contracts
D. Set insurance premiums
,An adjuster evaluates claims to determine coverage and settlement
amounts.
4. Which of the following is a type of property insurance coverage?
A. Health
B. Homeowners
C. Life
D. Disability
Homeowners insurance protects the structure and contents of a home
from covered perils.
5. In a property claim, what is the term for the amount the insured
must pay before insurance applies?
A. Premium
B. Policy limit
C. Deductible
D. Endorsement
The deductible is the portion of a loss the policyholder must pay out-of-
pocket before coverage begins.
6. Which of the following best describes a peril?
A. The insured
B. The cause of loss
C. The insurance company
D. The policy limit
A peril is an event or circumstance that can cause a loss, such as fire or
theft.
7. Which type of policy pays a set amount upon the occurrence of a
loss?
A. Indemnity
B. Liability
, C. Valued policy
D. Endorsement
A valued policy specifies the amount to be paid in case of a total loss,
rather than reimbursing actual loss value.
8. What is the term for the maximum amount an insurer will pay for
a covered loss?
A. Deductible
B. Premium
C. Policy limit
D. Endorsement
The policy limit defines the maximum coverage the insurer will provide
under the policy.
9. In North Carolina, which of the following is considered an “open-
peril” policy?
A. Named perils policy
B. Liability only policy
C. All-risk policy
D. Health insurance policy
An all-risk policy covers all perils except those specifically excluded.
10. Which type of property coverage protects against loss
caused by fire, wind, and vandalism?
A. Liability insurance
B. Life insurance
C. Health insurance
D. Homeowners insurance
Homeowners insurance includes coverage for common perils such as
fire, wind, hail, and vandalism.
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant Download Pdf
1. Which type of insurance policy provides coverage for both
property damage and bodily injury caused by the insured?
A. Health insurance
B. Liability insurance
C. Property insurance
D. Workers’ compensation
Liability insurance covers damages or injuries caused by the insured to
others, including both bodily injury and property damage.
2. In North Carolina, which of the following is required to act as a
licensed adjuster?
A. College degree
B. State license
C. Employer sponsorship
D. Federal registration
Adjusters must be licensed by the state to legally investigate and settle
claims.
3. What does an adjuster primarily do?
A. Sell insurance policies
B. Investigate and settle claims
C. Write contracts
D. Set insurance premiums
,An adjuster evaluates claims to determine coverage and settlement
amounts.
4. Which of the following is a type of property insurance coverage?
A. Health
B. Homeowners
C. Life
D. Disability
Homeowners insurance protects the structure and contents of a home
from covered perils.
5. In a property claim, what is the term for the amount the insured
must pay before insurance applies?
A. Premium
B. Policy limit
C. Deductible
D. Endorsement
The deductible is the portion of a loss the policyholder must pay out-of-
pocket before coverage begins.
6. Which of the following best describes a peril?
A. The insured
B. The cause of loss
C. The insurance company
D. The policy limit
A peril is an event or circumstance that can cause a loss, such as fire or
theft.
7. Which type of policy pays a set amount upon the occurrence of a
loss?
A. Indemnity
B. Liability
, C. Valued policy
D. Endorsement
A valued policy specifies the amount to be paid in case of a total loss,
rather than reimbursing actual loss value.
8. What is the term for the maximum amount an insurer will pay for
a covered loss?
A. Deductible
B. Premium
C. Policy limit
D. Endorsement
The policy limit defines the maximum coverage the insurer will provide
under the policy.
9. In North Carolina, which of the following is considered an “open-
peril” policy?
A. Named perils policy
B. Liability only policy
C. All-risk policy
D. Health insurance policy
An all-risk policy covers all perils except those specifically excluded.
10. Which type of property coverage protects against loss
caused by fire, wind, and vandalism?
A. Liability insurance
B. Life insurance
C. Health insurance
D. Homeowners insurance
Homeowners insurance includes coverage for common perils such as
fire, wind, hail, and vandalism.
