NC ADJUSTER LICENSE FINAL EXAM
STUDY GUIDE
2025/2026 | COMPLETE QUESTIONS |
VERIFIED ANSWERS | GRADED A + | PASS
GUARANTEED | RECENT EDITION
Principle of Indemnity - ANSWER Restoring the insured to the original
financial position before a loss, but without gain.
Property Insurance indemnifies... - ANSWER A person or business with an
interest in the physical integrity of tangible property for its loss and the loss of
income produced by that property.
Casualty Insurance provides... - ANSWER Protection to meet the unexpected
costs imposed by law due to acts that have caused bodily injury or property
damage to another. (Liability)
Private or Voluntary Insurance - ANSWER The portion of insurance where
individuals seek coverage to meet recognized needs. Not required or made
available by the government.
Social Insurance - ANSWER programs either required or made available by the
government. Motor vehicle, workers' comp, flood, etc.
, Reinsurance - ANSWER Where insurers sell portions of their individual
contracts of insurance to other companies to spread the risk of loss.
Capital Stock Companies - ANSWER In business to make a profit for
stockholders, owner by the stockholders who elect a Board of Directors
Mutual Companies - ANSWER owned by the policyholders, who elect a board
of directors to appoint officers
Reciprocal (Assessment) Companies - ANSWER non-incorporated associations
of individuals or businesses that engage in cooperative insurance.
Domestic Companies - ANSWER Those companies organized in NC
Foreign Companies - ANSWER Those companies organized in another state
Alien Companies - ANSWER Those companies organized in another country
Certificate of Authority - ANSWER State license to sell insurance in the state
of NC
Agents represent who? - ANSWER They represent the insurer.
Brokers represent who? - ANSWER They represent the insured.
, Underwriting - ANSWER The quality control department of the insurance
company, guarding against adverse selection.
What are the four elements of a legally binding contract? - ANSWER Offer and
Acceptance, Consideration, Legal Object, Competent Parties
What are the 6 parts of the Insurance Contract? - ANSWER Declarations Page,
Insuring Agreement, Conditions, Exclusions, Endorsements, Definitions.
Declarations Page - ANSWER The personalized part of the policy that includes
the parties, the term, the amount purchased, the amount of the premium, and the
object or person insured.
Insuring Agreement - ANSWER The "heart" of the contract that states the perils
that are insured against and establishes the insurer's responsibility to pay claims.
Conditions - ANSWER The provisions and stipulations of the policy for
conduct for insureds and insurer. Examples of insured responsibilities are payment
of premium, providing proof of loss, providing accurate responses.
Exclusions - ANSWER This lists what perils are not covered.
Endorsements - ANSWER These modify the basic contract and have no
independent existence.
Definitions - ANSWER Explains the terms of the contact.
, Unilateral - ANSWER The contact can only be enforced by one party - the
insured can force the insurer to legally provide coverage on claims.
Adhesion - ANSWER The insurance contract and its wording are prepared by
the insurer and are presented "as is." Courts will interpret ambiguity in favor of
insureds.
Waiver - ANSWER A legal doctrine placed in writing that means a voluntary
abandonment of a right or advantage.
Estoppel - ANSWER The legal consequences of signing a waiver, one party to
a contract may be estopped (stopped) by their past words or actions.
Representations - ANSWER Statements in the application that are made with
utmost good faith, but not guaranteed to be accurate.
Warranties - ANSWER Statements guaranteed as to accuracy for both past and
future events.
Misrepresentations - ANSWER A lie regarding material information.
Concealment - ANSWER Withholding of a material fact, a failure to tell the
entire truth.
STUDY GUIDE
2025/2026 | COMPLETE QUESTIONS |
VERIFIED ANSWERS | GRADED A + | PASS
GUARANTEED | RECENT EDITION
Principle of Indemnity - ANSWER Restoring the insured to the original
financial position before a loss, but without gain.
Property Insurance indemnifies... - ANSWER A person or business with an
interest in the physical integrity of tangible property for its loss and the loss of
income produced by that property.
Casualty Insurance provides... - ANSWER Protection to meet the unexpected
costs imposed by law due to acts that have caused bodily injury or property
damage to another. (Liability)
Private or Voluntary Insurance - ANSWER The portion of insurance where
individuals seek coverage to meet recognized needs. Not required or made
available by the government.
Social Insurance - ANSWER programs either required or made available by the
government. Motor vehicle, workers' comp, flood, etc.
, Reinsurance - ANSWER Where insurers sell portions of their individual
contracts of insurance to other companies to spread the risk of loss.
Capital Stock Companies - ANSWER In business to make a profit for
stockholders, owner by the stockholders who elect a Board of Directors
Mutual Companies - ANSWER owned by the policyholders, who elect a board
of directors to appoint officers
Reciprocal (Assessment) Companies - ANSWER non-incorporated associations
of individuals or businesses that engage in cooperative insurance.
Domestic Companies - ANSWER Those companies organized in NC
Foreign Companies - ANSWER Those companies organized in another state
Alien Companies - ANSWER Those companies organized in another country
Certificate of Authority - ANSWER State license to sell insurance in the state
of NC
Agents represent who? - ANSWER They represent the insurer.
Brokers represent who? - ANSWER They represent the insured.
, Underwriting - ANSWER The quality control department of the insurance
company, guarding against adverse selection.
What are the four elements of a legally binding contract? - ANSWER Offer and
Acceptance, Consideration, Legal Object, Competent Parties
What are the 6 parts of the Insurance Contract? - ANSWER Declarations Page,
Insuring Agreement, Conditions, Exclusions, Endorsements, Definitions.
Declarations Page - ANSWER The personalized part of the policy that includes
the parties, the term, the amount purchased, the amount of the premium, and the
object or person insured.
Insuring Agreement - ANSWER The "heart" of the contract that states the perils
that are insured against and establishes the insurer's responsibility to pay claims.
Conditions - ANSWER The provisions and stipulations of the policy for
conduct for insureds and insurer. Examples of insured responsibilities are payment
of premium, providing proof of loss, providing accurate responses.
Exclusions - ANSWER This lists what perils are not covered.
Endorsements - ANSWER These modify the basic contract and have no
independent existence.
Definitions - ANSWER Explains the terms of the contact.
, Unilateral - ANSWER The contact can only be enforced by one party - the
insured can force the insurer to legally provide coverage on claims.
Adhesion - ANSWER The insurance contract and its wording are prepared by
the insurer and are presented "as is." Courts will interpret ambiguity in favor of
insureds.
Waiver - ANSWER A legal doctrine placed in writing that means a voluntary
abandonment of a right or advantage.
Estoppel - ANSWER The legal consequences of signing a waiver, one party to
a contract may be estopped (stopped) by their past words or actions.
Representations - ANSWER Statements in the application that are made with
utmost good faith, but not guaranteed to be accurate.
Warranties - ANSWER Statements guaranteed as to accuracy for both past and
future events.
Misrepresentations - ANSWER A lie regarding material information.
Concealment - ANSWER Withholding of a material fact, a failure to tell the
entire truth.
