NC ADJUSTER FINAL PREPARATION SHEET
2026 QUESTIONS AND VERIFIED SOLUTIONS
GUARANTEED TO PASS
◉ Adhesion. Answer: One party sets the terms for the contract; the other
party may simply agree or disagree
◉ Unilateral. Answer: Only the insurer makes a promise to act; the
insured can void contract at any time.
◉ Personal. Answer: The insured person is protected from loses not the
personal property.
◉ Conditional. Answer: The insurer must only honor the contract if the
insured meets certain conditions.
◉ Lavatory. Answer: The execution of the contract depends on an
unknown future event.
◉ Conditions. Answer: List of requirements the insured must meet for
coverage to apply.
◉ Declarations. Answer: Information that makes a policy unique to the
insured.
, ◉ Exclusions. Answer: Causes of loss or items of property that are not
covered by the policy.
◉ Endorsements. Answer: Add, reduce, or change the coverage of the
policy in some way.
◉ Definitions. Answer: Explains exactly what specific words mean in
the context of the policy.
◉ Insuring Agreement. Answer: Essence of the contract. Summarizes
what the insurer will cover and how.
◉ Government vs Private insurance. Answer: Mandatory, run by the
government, suited to needs of the general public.
Offer insurance products based on customer preferences.
◉ Stock vs Mutual insurance. Answer: Publicly traded; stock holders
participate in dividends.
Policy holders participate in dividends.
◉ Reciprocal Insurer. Answer: group of people or organizations that
insure each other.
2026 QUESTIONS AND VERIFIED SOLUTIONS
GUARANTEED TO PASS
◉ Adhesion. Answer: One party sets the terms for the contract; the other
party may simply agree or disagree
◉ Unilateral. Answer: Only the insurer makes a promise to act; the
insured can void contract at any time.
◉ Personal. Answer: The insured person is protected from loses not the
personal property.
◉ Conditional. Answer: The insurer must only honor the contract if the
insured meets certain conditions.
◉ Lavatory. Answer: The execution of the contract depends on an
unknown future event.
◉ Conditions. Answer: List of requirements the insured must meet for
coverage to apply.
◉ Declarations. Answer: Information that makes a policy unique to the
insured.
, ◉ Exclusions. Answer: Causes of loss or items of property that are not
covered by the policy.
◉ Endorsements. Answer: Add, reduce, or change the coverage of the
policy in some way.
◉ Definitions. Answer: Explains exactly what specific words mean in
the context of the policy.
◉ Insuring Agreement. Answer: Essence of the contract. Summarizes
what the insurer will cover and how.
◉ Government vs Private insurance. Answer: Mandatory, run by the
government, suited to needs of the general public.
Offer insurance products based on customer preferences.
◉ Stock vs Mutual insurance. Answer: Publicly traded; stock holders
participate in dividends.
Policy holders participate in dividends.
◉ Reciprocal Insurer. Answer: group of people or organizations that
insure each other.
