NC Adjuster License Practice Exam Questions With Correct Answers

NC Adjuster License Practice Exam
Questions With Correct Answers

Manny |is |purchasing |a |Commercial |Property |policy |with |a |Business |Income |form |included. |
Manny |can |select |from |any |of |the |following |as |a |method |to |provide |coverage, |while |avoiding |
the |coinsurance |requirement, |EXCEPT: |- |CORRECT |ANSWER✔✔-The |maximum |monthly |limit |of
|indemnity |optional |coverage




The |traditional |definition |of |actual |cash |value |(ACV) |is: |- |CORRECT |ANSWER✔✔-Replacement |
cost |minus |depreciation



Sam |and |Dan |are |working |to |clean |out |the |gutters |around |the |roof |on |Sam's |house. |Sam |and |
Dan |are |standing |at |the |top |of |separate |ladders |that |are |propped |against |the |side |of |Sam's |
house, |when |Dan's |ladder |begins |to |wobble |and |ultimately |falls |into |Sam's |ladder. |Both |men |
and |their |ladders |crash |to |the |ground. |Whose |injuries |will |be |covered |by |Sam's |Homeowners |
policy |under |Coverage |E |- |Personal |Liability? |- |CORRECT |ANSWER✔✔-Only |Dan's |injuries |
would |be |covered



Torts |that |can |be |covered |by |insurance |policies |include |all |of |the |following, |EXCEPT: |- |CORRECT
|ANSWER✔✔-Intentional |torts |purposely |committed |to |cause |harm |to |another.




The |insured |has |a |$1,000,000 |personal |umbrella |policy |with |a |$5,000 |retention |limit. |For |a |
$7,000 |liability |loss |not |covered |under |the |insured's |personal |auto |policy, |but |covered |under |
the |umbrella |policy, |the |insurance |company |would |pay: |- |CORRECT |ANSWER✔✔-$2,000



All |of |the |following |is |considered |an |"insured" |under |a |CGL |policy, |EXCEPT: |- |CORRECT |
ANSWER✔✔-Lawyers |of |the |named |insured

,What |specific |type |of |liability |policy |gives |an |owner |protection |against |liability |claims |arising |
out |of |the |acts |of |its |independent |contractors? |- |CORRECT |ANSWER✔✔-Owners |and |
Contractors |Protective |Liability |Policy.



Which |of |the |following |would |be |eligible |for |coverage |under |a |Businessowners |policy? |- |
CORRECT |ANSWER✔✔-A |small |retail |store



Which |of |the |following |is |NOT |a |correct |statement |in |determining |the |cost |of |a |"comparable |
automobile" |when |a |physical |damage |loss |has |a |occurred? |- |CORRECT |ANSWER✔✔-The |cost |
of |a |comparable |automobile |as |determined |by |a |computerized |automobile |valuation |service |
that |produces |statistically |valid |fair |market |values |within |the |United |States |market



All |of |the |following |statements |are |TRUE |of |North |Carolina |automobile |liability |policies, |
EXCEPT |- |CORRECT |ANSWER✔✔-If |the |insured |carries |limits |greater |than |the |minimum |
financial |responsibility |limits |required |by |state |law, |they |are |not |required |to |carry
|Uninsured/Underinsured |Motorists |coverage.




The |basic |limit |for |Coverage |F |-- |Medical |Payments |of |the |standard |Homeowners |forms |is: |- |
CORRECT |ANSWER✔✔-$1,000 |per |person



Oliver |Dogwood |was |in |an |auto |accident |which |destroyed |his |car. |While |investigating |the |
accident, |Adjuster |Doright |found |that |Mr. |Dogwood |paid |$1,000 |for |the |vehicle. |After |checking
|with |others |he |found |the |same |vehicle |with |an |asking |price |of |$1,700, |a |retail |price |of |$2,150


|and |a |dealer |price |of |$1,750. |What |amount |will |Mr. |Dogwood |receive? |- |CORRECT |


ANSWER✔✔-$2,150



When |a |claims |representative |is |collecting |information |from |a |third-party |claimant, |which |of |
the |following |is |the |information |that |should |be |obtained |first? |- |CORRECT |ANSWER✔✔-The |
nature |and |extent |of |the |injuries |or |property |damage |claimed.



The |Business |Auto |uses |Symbol |7 |to |cover |"specifically |described |autos" |identified |in |the |
declarations. |An |auto |acquired |during |the |policy |period |will |only |be |covered: |- |CORRECT |

, ANSWER✔✔-If |the |insured |insures |all |of |their |vehicles |with |the |company |or |it |replaces |a |
covered |auto..



What |coverage |under |the |BOP |automatically |applies |if |a |customer |slips |and |falls |on |the |
named |insured's |premises, |regardless |of |legal |liability? |- |CORRECT |ANSWER✔✔-Medical |
expense |coverage



When |an |insurer |is |called |upon |to |defend |a |suit |under |a |CGL |policy, |the |amount |that |can |be |
paid |for |the |defense |costs |is: |- |CORRECT |ANSWER✔✔-Not |limited



Any |North |Carolina |lender |in |making |or |servicing |real |estate |mortgage |or |deed |of |trust |loans |
on |one |to |four |family |residences |must |accept |a |binder |as |proof |of |insurance. |The |binder |
presented |to |the |lender |must |include |all |of |the |following, |EXCEPT |- |CORRECT |ANSWER✔✔-A |
sworn |statement |that |the |insurance |will |be |kept |in |force.



Which |of |the |following |statements |is |TRUE |concerning |Part |A |- |Liability |coverage |on |a |
standard |Personal |Automobile |policy? |- |CORRECT |ANSWER✔✔-The |coverage |is |provided |only |
for |accidents |caused |by |those |who |are |"insureds" |under |the |policy..



Which |of |the |following |is |NOT |a |reason |to |purchase |a |Dwelling |policy |instead |of |a |
Homeowners |policy? |- |CORRECT |ANSWER✔✔-The |Dwelling |policy |provides |higher |limits |of |
liability |than |the |Homeowners |policy..



Which |of |the |following |is |NOT |excluded |by |Section |II |- |Liability |of |the |Business |Automobile |
policy? |- |CORRECT |ANSWER✔✔-Cost |to |defend |the |insured



The |insured |and |her |18-year-old |son, |who |lives |in |the |insured's |household, |are |crossing |the |
street |when |both |of |them |are |struck |by |a |drunk |driver. |The |Part |B |- |Medical |Payments |
coverage |of |the |insured's |personal |auto |policy |will: |- |CORRECT |ANSWER✔✔-Provide |coverage |
for |both |the |insured |and |her |son