NC ADJUSTER LICENSE EXAM SCRIPT 2026
TEST PAPER QUESTIONS AND SOLUTIONS
GRADED A+
◉ Coverage Part A through F of a PAP. Answer: A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
◉ Certificate of Insurance (COI). Answer: A document that proves
the existence of insurance coverage
◉ Occurrence. Answer: Something that continue to happen and may
cause injury later on.
◉ Accident. Answer: A sudden unforseen and unintended one time
event
◉ Assumption of risk. Answer: An individual who is aware of the
potential risk involved and chose to expose themselves to it.
,◉ Comparative negligence. Answer: Measures the amount of
negligence contributed to each party. The injured party will not
cover damages equal to the percentage of negligence they
contribute.
◉ Contributory Negligence. Answer: If an insured party contributed
to their injury in anyway due to their own negligence, we will not
pay anything.
◉ What state is a contributory state?. Answer: North Carolina
◉ Negligence. Answer: Failure to do (or not do) what a reasonable
prudent person would or would not have done in a similar instance.
◉ Temporary Substitute Automobile. Answer: Not owned by the
named insured but used temporarily as a substitute for the owned
auto that is not currently being used.
◉ What is an example of a Temporary substitute Automobile?.
Answer: A dealership loans an insured a vehicle to drive while their
car is getting fixed.
◉ Non Owned Automobile. Answer: Not owned by the named
insured or any relative.
,◉ What is an example of an Non Owned Automobile?. Answer: An
insured borrows a neighbors car.
◉ If an additional vehicle is not reported to the insurer within 30
days:. Answer: No coverage will apply to the added vehicle.
◉ If a vehicle is added to an existing policy (In addition to):. Answer:
It will have the broadest coverage if insured within 30 days of
becoming the owner.
◉ If a replacement vehicle is not reported within 30 days:. Answer:
Part D (Comprehensive and Collision Coverage) will not apply to the
replacement vehicle.
◉ A new vehicle that replaces another vehicle will:. Answer: Have
the same coverages as the old vehicle if the named insured request
to insure it within 30 days of becoming the owners.
◉ Insured. Answer: Any blood relative by marriage, adoption, wards,
foster children, living in the same home, including children away at
college. Also, any person using someones car with their permission.
, ◉ Named insured. Answer: Listed on the declarations page. Included
a spouse wether they are named in the policy or not, provided they
live in the same home.
◉ 1st Coverage for watercraft or yacht are:. Answer: Hull insurance
for damage to the insured boat itself
◉ 2nd Coverage for watercraft or yacht are:. Answer: Protection and
indemnity liability coverage for BI and PD exposures for damage to
other people or other peoples boats.
◉ What doesn't watercraft or yacht coverage provide?. Answer:
Coverage for boats used for hire, charger, or for transporting people
for a fee.
◉ How many days removal coverage is provided on the National
Flood Insurance Program?. Answer: 45 days
◉ Elevation certificates. Answer: Required on dwellings that are
written in the regular program in certain flood zones in order to
properly rate the policy.
◉ Flood insurance policies become effective after:. Answer: 30 days
after receipt of the coverage application and the premium payment.
TEST PAPER QUESTIONS AND SOLUTIONS
GRADED A+
◉ Coverage Part A through F of a PAP. Answer: A. Liability
B. Medical Payments
C. UM/UIM
D. Physical Damage
E. Insured Duties
F. General Provisions
◉ Certificate of Insurance (COI). Answer: A document that proves
the existence of insurance coverage
◉ Occurrence. Answer: Something that continue to happen and may
cause injury later on.
◉ Accident. Answer: A sudden unforseen and unintended one time
event
◉ Assumption of risk. Answer: An individual who is aware of the
potential risk involved and chose to expose themselves to it.
,◉ Comparative negligence. Answer: Measures the amount of
negligence contributed to each party. The injured party will not
cover damages equal to the percentage of negligence they
contribute.
◉ Contributory Negligence. Answer: If an insured party contributed
to their injury in anyway due to their own negligence, we will not
pay anything.
◉ What state is a contributory state?. Answer: North Carolina
◉ Negligence. Answer: Failure to do (or not do) what a reasonable
prudent person would or would not have done in a similar instance.
◉ Temporary Substitute Automobile. Answer: Not owned by the
named insured but used temporarily as a substitute for the owned
auto that is not currently being used.
◉ What is an example of a Temporary substitute Automobile?.
Answer: A dealership loans an insured a vehicle to drive while their
car is getting fixed.
◉ Non Owned Automobile. Answer: Not owned by the named
insured or any relative.
,◉ What is an example of an Non Owned Automobile?. Answer: An
insured borrows a neighbors car.
◉ If an additional vehicle is not reported to the insurer within 30
days:. Answer: No coverage will apply to the added vehicle.
◉ If a vehicle is added to an existing policy (In addition to):. Answer:
It will have the broadest coverage if insured within 30 days of
becoming the owner.
◉ If a replacement vehicle is not reported within 30 days:. Answer:
Part D (Comprehensive and Collision Coverage) will not apply to the
replacement vehicle.
◉ A new vehicle that replaces another vehicle will:. Answer: Have
the same coverages as the old vehicle if the named insured request
to insure it within 30 days of becoming the owners.
◉ Insured. Answer: Any blood relative by marriage, adoption, wards,
foster children, living in the same home, including children away at
college. Also, any person using someones car with their permission.
, ◉ Named insured. Answer: Listed on the declarations page. Included
a spouse wether they are named in the policy or not, provided they
live in the same home.
◉ 1st Coverage for watercraft or yacht are:. Answer: Hull insurance
for damage to the insured boat itself
◉ 2nd Coverage for watercraft or yacht are:. Answer: Protection and
indemnity liability coverage for BI and PD exposures for damage to
other people or other peoples boats.
◉ What doesn't watercraft or yacht coverage provide?. Answer:
Coverage for boats used for hire, charger, or for transporting people
for a fee.
◉ How many days removal coverage is provided on the National
Flood Insurance Program?. Answer: 45 days
◉ Elevation certificates. Answer: Required on dwellings that are
written in the regular program in certain flood zones in order to
properly rate the policy.
◉ Flood insurance policies become effective after:. Answer: 30 days
after receipt of the coverage application and the premium payment.
