NC Adjuster License Practice Exam 2026 Actual
Complete Questions and Detailed Answers|
Graded A+
North Carolina law stipulates that buildings located within the state that are
covered under a Fire policy and suffer a total loss, the insurance company: -
ANSWER-Is not liable to pay amounts beyond the actual cash value of the
insured property at the time of the loss or damage
Which of the following is generally not considered to be a legal defense against
claims of negligence? - ANSWER-The loss to the plaintiff was caused
intentionally by the defendant. .
All of the following are true regarding the "Write Your Own" program of the NFIP,
EXCEPT: - ANSWER-Insurers are required to participate in the program
How are death benefits calculated for an employee who has died as a result of a
work related incident? - ANSWER-66 2/3% of the employee's average weekly
wage for 500 weeks
Sharon's North Carolina home is covered under a Homeowner's policy with a
"Refrigerated Property Coverage" endorsement attached. She stores large
amounts of expensive meats in her freezer at any given time. One morning, she
doesn't hear the low hum of her freezer motor. When she opens her freezer
door, she finds that the freezer is no longer cold and all of her meat has spoiled.
Sharon collects her receipts and finds that the price of the spoiled meat totals
$658 and she submits a claim for this loss. How much will her insurer pay? -
,ANSWER-$500
Which of the following terms does NOT apply to workers compensation
coverage in North Carolina? - ANSWER-Temporary sick leave with benefits
Coverage D - Loss of Use on the Homeowners forms provides coverage for
"Civil Authority Prohibits Use" for: - ANSWER-No more than two weeks
All of the following statements are TRUE of the terms used in the standard
workers' compensation policy, EXCEPT: - ANSWER-"State" means any state of
the United States, the District of Columbia, and all territories and possessions.
Under the comprehensive coverage of a Business Auto policy, which of the
following would not be a covered loss? - ANSWER-After sliding on an icy
pavement, a driver hits a guard rail.
The Insurance Information & Privacy Protection Act (IIPPA) requires insurers to
conform to all of the following standards, EXCEPT: - ANSWER-Give reasonable
notice for policy renewal and other policy changes..
The Section I Additional Coverage of the standard Businessowners policy
provides coverage for "Debris Removal". Which of the following statements best
describes the limit for this coverage? - ANSWER-The total limit may be up to
25% of the policy limit for the loss payable with the deductible included, plus up
to an additional $25,000 if the policy limits are exhausted
When would the Personal Auto policy respond to a loss with an all-terrain three-
wheeled vehicle? - ANSWER-When used in an emergency situation
, Sarah is shopping at a grocery store and wants to purchase a bottle of juice.
The aisle is marked off with a rope awaiting the clerk to clean up a previously
broken bottle and spill on the floor. Sarah moves the rope to get the item and
slips and falls on the floor, cutting her face on the scattered glass. Which of the
following would be the defense that the insurance company would most likely
use in this situation? - ANSWER-Assumption of risk and contributory negligence
on the part of the customer
All of the following are excluded under the 1943 Standard Fire policy, EXCEPT:
- ANSWER-The theft of property after it had been removed from the insured
premises to protect it from further loss..
Which of the following statements is NOT TRUE regarding the "period of
restoration" for Business Income and Extra Expense coverage? - ANSWER-The
period of restoration ends when the policy period ends
Fidelity bonds are used to cover: - ANSWER-Employee dishonesty
Violating a cease and desist order issued by the North Carolina Commissioner
after finding a violation of the Unfair Practices will result in a a monetary fine of: -
ANSWER-A sum of not less than $1,000 nor more than $5,000 for each
violation
A licensee, for the second time, does not maintain records of insurance
transactions as prescribed by the North Carolina Commissioner. He/she will: -
ANSWER-Have their license suspended or revoked for a one year period
Which of the following endorsements can be attached to the Business Auto
Complete Questions and Detailed Answers|
Graded A+
North Carolina law stipulates that buildings located within the state that are
covered under a Fire policy and suffer a total loss, the insurance company: -
ANSWER-Is not liable to pay amounts beyond the actual cash value of the
insured property at the time of the loss or damage
Which of the following is generally not considered to be a legal defense against
claims of negligence? - ANSWER-The loss to the plaintiff was caused
intentionally by the defendant. .
All of the following are true regarding the "Write Your Own" program of the NFIP,
EXCEPT: - ANSWER-Insurers are required to participate in the program
How are death benefits calculated for an employee who has died as a result of a
work related incident? - ANSWER-66 2/3% of the employee's average weekly
wage for 500 weeks
Sharon's North Carolina home is covered under a Homeowner's policy with a
"Refrigerated Property Coverage" endorsement attached. She stores large
amounts of expensive meats in her freezer at any given time. One morning, she
doesn't hear the low hum of her freezer motor. When she opens her freezer
door, she finds that the freezer is no longer cold and all of her meat has spoiled.
Sharon collects her receipts and finds that the price of the spoiled meat totals
$658 and she submits a claim for this loss. How much will her insurer pay? -
,ANSWER-$500
Which of the following terms does NOT apply to workers compensation
coverage in North Carolina? - ANSWER-Temporary sick leave with benefits
Coverage D - Loss of Use on the Homeowners forms provides coverage for
"Civil Authority Prohibits Use" for: - ANSWER-No more than two weeks
All of the following statements are TRUE of the terms used in the standard
workers' compensation policy, EXCEPT: - ANSWER-"State" means any state of
the United States, the District of Columbia, and all territories and possessions.
Under the comprehensive coverage of a Business Auto policy, which of the
following would not be a covered loss? - ANSWER-After sliding on an icy
pavement, a driver hits a guard rail.
The Insurance Information & Privacy Protection Act (IIPPA) requires insurers to
conform to all of the following standards, EXCEPT: - ANSWER-Give reasonable
notice for policy renewal and other policy changes..
The Section I Additional Coverage of the standard Businessowners policy
provides coverage for "Debris Removal". Which of the following statements best
describes the limit for this coverage? - ANSWER-The total limit may be up to
25% of the policy limit for the loss payable with the deductible included, plus up
to an additional $25,000 if the policy limits are exhausted
When would the Personal Auto policy respond to a loss with an all-terrain three-
wheeled vehicle? - ANSWER-When used in an emergency situation
, Sarah is shopping at a grocery store and wants to purchase a bottle of juice.
The aisle is marked off with a rope awaiting the clerk to clean up a previously
broken bottle and spill on the floor. Sarah moves the rope to get the item and
slips and falls on the floor, cutting her face on the scattered glass. Which of the
following would be the defense that the insurance company would most likely
use in this situation? - ANSWER-Assumption of risk and contributory negligence
on the part of the customer
All of the following are excluded under the 1943 Standard Fire policy, EXCEPT:
- ANSWER-The theft of property after it had been removed from the insured
premises to protect it from further loss..
Which of the following statements is NOT TRUE regarding the "period of
restoration" for Business Income and Extra Expense coverage? - ANSWER-The
period of restoration ends when the policy period ends
Fidelity bonds are used to cover: - ANSWER-Employee dishonesty
Violating a cease and desist order issued by the North Carolina Commissioner
after finding a violation of the Unfair Practices will result in a a monetary fine of: -
ANSWER-A sum of not less than $1,000 nor more than $5,000 for each
violation
A licensee, for the second time, does not maintain records of insurance
transactions as prescribed by the North Carolina Commissioner. He/she will: -
ANSWER-Have their license suspended or revoked for a one year period
Which of the following endorsements can be attached to the Business Auto
