NC ADJUSTER LICENSE EXAM AND
PRACTICE EXAM LATEST ACTUAL EXAM
150 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS)
Manny is purchasing a Commercial Property policy with a Business Income form included. Manny
II! II! II! II! II! II! II! II! II! II! II! II! II!
can select from any of the following as a method to provide coverage, while avoiding the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
coinsurance requirement, EXCEPT: - Correct Answers The maximum monthly limit of indemnity
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
optional coverage
II! II!
II! The traditional definition of actual cash value (ACV) is: - Correct Answers Replacement cost
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! minus depreciation II!
II! Sam and Dan are working to clean out the gutters around the roof on Sam's house. Sam and Dan
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! are standing at the top of separate ladders that are propped against the side of Sam's house,
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! when Dan's ladder begins to wobble and ultimately falls into Sam's ladder. Both men and their
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! ladders crash to the ground. Whose injuries will be covered by Sam's Homeowners policy under
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Coverage E - Personal Liability? - Correct Answers Only Dan's injuries would be covered
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Torts that can be covered by insurance policies include all of the following, EXCEPT: - Correct
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Answers Intentional torts purposely committed to cause harm to another.
II! II! II! II! II! II! II! II! II! II! II! II!
II! The insured has a $1,000,000 personal umbrella policy with a $5,000 retention limit. For a $7,000
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! liability loss not covered under the insured's personal auto policy, but covered under the
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! umbrella policy, the insurance company would pay: - Correct Answers $2,000
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! All of the following is considered an "insured" under a CGL policy, EXCEPT: - Correct Answers
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Lawyers of the named insured II! II! II! II!
,II! What specific type of liability policy gives an owner protection against liability claims arising out
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! of the acts of its independent contractors? - Correct Answers Owners and Contractors
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Protective Liability Policy. II! II!
II! Which of the following would be eligible for coverage under a Businessowners policy? - Correct
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Answers A small retail store II! II! II! II! II! II! II!
II! Which of the following is NOT a correct statement in determining the cost of a "comparable
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! automobile" when a physical damage loss has a occurred? - Correct Answers The cost of a II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! comparable automobile as determined by a computerized automobile valuation service that II! II! II! II! II! II! II! II! II! II!
II! produces statistically valid fair market values within the United States market II! II! II! II! II! II! II! II! II! II!
II! All of the following statements are TRUE of North Carolina automobile liability policies, EXCEPT -
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Correct Answers If the insured carries limits greater than the minimum financial responsibility
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! limits required by state law, they are not required to carry Uninsured/Underinsured Motorists
II! II! II! II! II! II! II! II! II! II! II! II!
II! coverage.
II! The basic limit for Coverage F -- Medical Payments of the standard Homeowners forms is: -
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Correct Answers $1,000 per person II! II! II! II! II! II! II!
II! Oliver Dogwood was in an auto accident which destroyed his car. While investigating the
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! accident, Adjuster Doright found that Mr. Dogwood paid $1,000 for the vehicle. After checking
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! with others he found the same vehicle with an asking price of $1,700, a retail price of $2,150 and
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! a dealer price of $1,750. What amount will Mr. Dogwood receive? - Correct Answers $2,150
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! When a claims representative is collecting information from a third-party claimant, which of the
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! following is the information that should be obtained first? - Correct Answers The nature and
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! extent of the injuries or property damage claimed.
II! II! II! II! II! II! II!
, II! The Business Auto uses Symbol 7 to cover "specifically described autos" identified in the
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! declarations. An auto acquired during the policy period will only be covered: - Correct Answers II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! If the insured insures all of their vehicles with the company or it replaces a covered auto..
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! What coverage under the BOP automatically applies if a customer slips and falls on the named
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! insured's premises, regardless of legal liability? - Correct Answers Medical expense coverage
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! When an insurer is called upon to defend a suit under a CGL policy, the amount that can be paid
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! for the defense costs is: - Correct Answers Not limited
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Any North Carolina lender in making or servicing real estate mortgage or deed of trust loans on
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! one to four family residences must accept a binder as proof of insurance. The binder presented to
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! the lender must include all of the following, EXCEPT - Correct Answers A sworn statement that
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! the insurance will be kept in force.
II! II! II! II! II! II!
II! Which of the following statements is TRUE concerning Part A - Liability coverage on a standard
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Personal Automobile policy? - Correct Answers The coverage is provided only for accidents
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! caused by those who are "insureds" under the policy.. II! II! II! II! II! II! II! II!
II! Which of the following is NOT a reason to purchase a Dwelling policy instead of a Homeowners
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! policy? - Correct Answers The Dwelling policy provides higher limits of liability than the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Homeowners policy.. II!
II! Which of the following is NOT excluded by Section II - Liability of the Business Automobile policy?
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! - Correct Answers Cost to defend the insured
II! II! II! II! II! II! II! II! II! II! II!
II! The insured and her 18-year-old son, who lives in the insured's household, are crossing the street
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! when both of them are struck by a drunk driver. The Part B - Medical Payments coverage of the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! insured's personal auto policy will: - Correct Answers Provide coverage for both the insured and
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! her son II!
PRACTICE EXAM LATEST ACTUAL EXAM
150 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS)
Manny is purchasing a Commercial Property policy with a Business Income form included. Manny
II! II! II! II! II! II! II! II! II! II! II! II! II!
can select from any of the following as a method to provide coverage, while avoiding the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
coinsurance requirement, EXCEPT: - Correct Answers The maximum monthly limit of indemnity
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
optional coverage
II! II!
II! The traditional definition of actual cash value (ACV) is: - Correct Answers Replacement cost
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! minus depreciation II!
II! Sam and Dan are working to clean out the gutters around the roof on Sam's house. Sam and Dan
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! are standing at the top of separate ladders that are propped against the side of Sam's house,
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! when Dan's ladder begins to wobble and ultimately falls into Sam's ladder. Both men and their
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! ladders crash to the ground. Whose injuries will be covered by Sam's Homeowners policy under
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Coverage E - Personal Liability? - Correct Answers Only Dan's injuries would be covered
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Torts that can be covered by insurance policies include all of the following, EXCEPT: - Correct
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Answers Intentional torts purposely committed to cause harm to another.
II! II! II! II! II! II! II! II! II! II! II! II!
II! The insured has a $1,000,000 personal umbrella policy with a $5,000 retention limit. For a $7,000
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! liability loss not covered under the insured's personal auto policy, but covered under the
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! umbrella policy, the insurance company would pay: - Correct Answers $2,000
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! All of the following is considered an "insured" under a CGL policy, EXCEPT: - Correct Answers
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Lawyers of the named insured II! II! II! II!
,II! What specific type of liability policy gives an owner protection against liability claims arising out
II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! of the acts of its independent contractors? - Correct Answers Owners and Contractors
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Protective Liability Policy. II! II!
II! Which of the following would be eligible for coverage under a Businessowners policy? - Correct
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Answers A small retail store II! II! II! II! II! II! II!
II! Which of the following is NOT a correct statement in determining the cost of a "comparable
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! automobile" when a physical damage loss has a occurred? - Correct Answers The cost of a II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! comparable automobile as determined by a computerized automobile valuation service that II! II! II! II! II! II! II! II! II! II!
II! produces statistically valid fair market values within the United States market II! II! II! II! II! II! II! II! II! II!
II! All of the following statements are TRUE of North Carolina automobile liability policies, EXCEPT -
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Correct Answers If the insured carries limits greater than the minimum financial responsibility
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! limits required by state law, they are not required to carry Uninsured/Underinsured Motorists
II! II! II! II! II! II! II! II! II! II! II! II!
II! coverage.
II! The basic limit for Coverage F -- Medical Payments of the standard Homeowners forms is: -
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Correct Answers $1,000 per person II! II! II! II! II! II! II!
II! Oliver Dogwood was in an auto accident which destroyed his car. While investigating the
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! accident, Adjuster Doright found that Mr. Dogwood paid $1,000 for the vehicle. After checking
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! with others he found the same vehicle with an asking price of $1,700, a retail price of $2,150 and
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! a dealer price of $1,750. What amount will Mr. Dogwood receive? - Correct Answers $2,150
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! When a claims representative is collecting information from a third-party claimant, which of the
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! following is the information that should be obtained first? - Correct Answers The nature and
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! extent of the injuries or property damage claimed.
II! II! II! II! II! II! II!
, II! The Business Auto uses Symbol 7 to cover "specifically described autos" identified in the
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! declarations. An auto acquired during the policy period will only be covered: - Correct Answers II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! If the insured insures all of their vehicles with the company or it replaces a covered auto..
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! What coverage under the BOP automatically applies if a customer slips and falls on the named
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! insured's premises, regardless of legal liability? - Correct Answers Medical expense coverage
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! When an insurer is called upon to defend a suit under a CGL policy, the amount that can be paid
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! for the defense costs is: - Correct Answers Not limited
II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Any North Carolina lender in making or servicing real estate mortgage or deed of trust loans on
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! one to four family residences must accept a binder as proof of insurance. The binder presented to
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! the lender must include all of the following, EXCEPT - Correct Answers A sworn statement that
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! the insurance will be kept in force.
II! II! II! II! II! II!
II! Which of the following statements is TRUE concerning Part A - Liability coverage on a standard
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Personal Automobile policy? - Correct Answers The coverage is provided only for accidents
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! caused by those who are "insureds" under the policy.. II! II! II! II! II! II! II! II!
II! Which of the following is NOT a reason to purchase a Dwelling policy instead of a Homeowners
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! policy? - Correct Answers The Dwelling policy provides higher limits of liability than the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! Homeowners policy.. II!
II! Which of the following is NOT excluded by Section II - Liability of the Business Automobile policy?
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! - Correct Answers Cost to defend the insured
II! II! II! II! II! II! II! II! II! II! II!
II! The insured and her 18-year-old son, who lives in the insured's household, are crossing the street
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! when both of them are struck by a drunk driver. The Part B - Medical Payments coverage of the
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! insured's personal auto policy will: - Correct Answers Provide coverage for both the insured and
II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II! II!
II! her son II!
