NC ADJUSTER LICENSE PRACTICE EXAM
100+ QNS WITH COMPLETE SOLUTION
GRADED A+
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 Accurate Answer: The maximum monthly limit of indemnity
optional coverage
The traditional definition of actual cash value (ACV) is: Accurate 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? Accurate Answer: Only Dan's injuries would be covered
Torts that can be covered by insurance policies include all of the following, EXCEPT: Accurate
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: Accurate Answer: $2,000
,All of the following is considered an "insured" under a CGL policy, EXCEPT: Accurate 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? Accurate Answer: Owners and Contractors
Protective Liability Policy.
Which of the following would be eligible for coverage under a Businessowners policy?
Accurate 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? Accurate Answer: Accurate 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
Accurate 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:
Accurate 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?
Accurate 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? Accurate 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:
Accurate 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? Accurate 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: Accurate 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 Accurate 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? Accurate 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? Accurate Answer: The Dwelling policy provides higher limits of liability than the
Homeowners policy..
100+ QNS WITH COMPLETE SOLUTION
GRADED A+
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 Accurate Answer: The maximum monthly limit of indemnity
optional coverage
The traditional definition of actual cash value (ACV) is: Accurate 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? Accurate Answer: Only Dan's injuries would be covered
Torts that can be covered by insurance policies include all of the following, EXCEPT: Accurate
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: Accurate Answer: $2,000
,All of the following is considered an "insured" under a CGL policy, EXCEPT: Accurate 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? Accurate Answer: Owners and Contractors
Protective Liability Policy.
Which of the following would be eligible for coverage under a Businessowners policy?
Accurate 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? Accurate Answer: Accurate 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
Accurate 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:
Accurate 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?
Accurate 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? Accurate 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:
Accurate 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? Accurate 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: Accurate 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 Accurate 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? Accurate 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? Accurate Answer: The Dwelling policy provides higher limits of liability than the
Homeowners policy..
