NC ADJUSTER LICENSING EXAM QUESTIONS AND
CORRECT ANSWERS| ACCURATE REAL EXAM WITH
FREQUENTLY TESTED QUESTIONS AND
RATIONALE|ALREADY A GRADED|GUARANTEED
PASS|LATEST UPDATE 2025.
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
All of the following are types of rehabilitative services provided under a workers' compensation
policy, EXCEPT: - CORRECT ANSWER Substance abuse
Which of the following statements defines a "bailee"? - CORRECT ANSWER Someone, other
than the insured, to whom the insured property is entrusted temporarily.
In North Carolina, the motor vehicle liability policy law requires owners of motor vehicles to
carry limits of: - CORRECT ANSWER $30/60/25
Many states amend property insurance coverage additions and extensions by statute due to
insufficient coverage amounts or time limits. All of the following are property insurance
additions or extensions that are frequently amended by state statute, EXCEPT: - CORRECT
ANSWER Other Structures
How are household personal property claims settled under the farm policy? - CORRECT
ANSWER Actual cash value
Which policy would be best for a prospective insured who wants coverage against liability
assumed by him under specific written agreements? - CORRECT ANSWER Contractual
Liability provided under a CGL policy
North Carolina law prohibits any Fire insurance policy covering property within the state of
North Carolina to be issued for a term: - CORRECT ANSWER Longer than seven years
Collin suffered a work-related injury on the morning of February 5th and was off work
completely until he returned to work on full duty on February 19th. Collin had worked for his
employer for four years and was paid $42,125 per year. Collin's state sets the TTD rate at 66
2/3rd percent of the average weekly wage. The state sets the maximum compensation rate at
$420 per week and the waiting period at 3 days retroactive after 10 days. Collin was not paid for
working on February 5th, so how many days of TTD compensation is Collin entitled to receive?
- CORRECT ANSWER 14
All of the following are examples of insurable interest in property, EXCEPT: - CORRECT
ANSWER The interest an individual has in the property her parents will someday leave to her.
George went out for target practice one day with his handgun. He has practiced many times with
the same target located in the woods behind his house. Unbeknownst to George, a neighbor was
walking in the woods behind the target one day and was shot in the leg by George. Intentional
acts are never covered by insurance, however, the claim filed by the injured neighbor may be
covered under George's liability coverage. Which of the following is the most likely reason why?
- CORRECT ANSWER Shooting the gun was an intentional act committed by George, but the
consequences of act (his neighbor being shot) were not intended
, The duties of the insured after a loss are included in insurance policy language to: - CORRECT
ANSWER Assist in the adjuster's investigation of the claim
The perils insured against by a Homeowners policy are contained within the: - CORRECT
ANSWER Insuring Agreements
Under a standard HO-3, the limit for Coverage C -- Personal Property for a one or two-family
dwelling: - CORRECT ANSWER Is set at 50% of Coverage A
Which of the following flood zones show a "flood depth" instead of a "base flood elevation" on a
FIRM? - CORRECT ANSWER AO
North Carolina law stipulates that buildings located within the state that are covered under a Fire
policy and suffer a total loss, the insurance company: - CORRECT ANSWER Is not liable to
pay amounts beyond the actual cash value of the insured property at the time of the loss or
damage
Which of the following is generally not considered to be a legal defense against claims of
negligence? - CORRECT ANSWER The loss to the plaintiff was caused intentionally by the
defendant. .
All of the following are true regarding the "Write Your Own" program of the NFIP, EXCEPT: -
CORRECT ANSWER Insurers are required to participate in the program
How are death benefits calculated for an employee who has died as a result of a work related
incident? - CORRECT ANSWER 66 2/3% of the employee's average weekly wage for 500
weeks
Sharon's North Carolina home is covered under a Homeowner's policy with a "Refrigerated
Property Coverage" endorsement attached. She stores large amounts of expensive meats in her
freezer at any given time. One morning, she doesn't hear the low hum of her freezer motor. When
she opens her freezer door, she finds that the freezer is no longer cold and all of her meat has
spoiled. Sharon collects her receipts and finds that the price of the spoiled meat totals $658 and
she submits a claim for this loss. How much will her insurer pay? - CORRECT ANSWER $500
Which of the following terms does NOT apply to workers compensation coverage in North
Carolina? - CORRECT ANSWER Temporary sick leave with benefits
Coverage D - Loss of Use on the Homeowners forms provides coverage for "Civil Authority
Prohibits Use" for: - CORRECT ANSWER No more than two weeks
All of the following statements are TRUE of the terms used in the standard workers'
compensation policy, EXCEPT: - CORRECT ANSWER "State" means any state of the United
States, the District of Columbia, and all territories and possessions.
CORRECT ANSWERS| ACCURATE REAL EXAM WITH
FREQUENTLY TESTED QUESTIONS AND
RATIONALE|ALREADY A GRADED|GUARANTEED
PASS|LATEST UPDATE 2025.
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
All of the following are types of rehabilitative services provided under a workers' compensation
policy, EXCEPT: - CORRECT ANSWER Substance abuse
Which of the following statements defines a "bailee"? - CORRECT ANSWER Someone, other
than the insured, to whom the insured property is entrusted temporarily.
In North Carolina, the motor vehicle liability policy law requires owners of motor vehicles to
carry limits of: - CORRECT ANSWER $30/60/25
Many states amend property insurance coverage additions and extensions by statute due to
insufficient coverage amounts or time limits. All of the following are property insurance
additions or extensions that are frequently amended by state statute, EXCEPT: - CORRECT
ANSWER Other Structures
How are household personal property claims settled under the farm policy? - CORRECT
ANSWER Actual cash value
Which policy would be best for a prospective insured who wants coverage against liability
assumed by him under specific written agreements? - CORRECT ANSWER Contractual
Liability provided under a CGL policy
North Carolina law prohibits any Fire insurance policy covering property within the state of
North Carolina to be issued for a term: - CORRECT ANSWER Longer than seven years
Collin suffered a work-related injury on the morning of February 5th and was off work
completely until he returned to work on full duty on February 19th. Collin had worked for his
employer for four years and was paid $42,125 per year. Collin's state sets the TTD rate at 66
2/3rd percent of the average weekly wage. The state sets the maximum compensation rate at
$420 per week and the waiting period at 3 days retroactive after 10 days. Collin was not paid for
working on February 5th, so how many days of TTD compensation is Collin entitled to receive?
- CORRECT ANSWER 14
All of the following are examples of insurable interest in property, EXCEPT: - CORRECT
ANSWER The interest an individual has in the property her parents will someday leave to her.
George went out for target practice one day with his handgun. He has practiced many times with
the same target located in the woods behind his house. Unbeknownst to George, a neighbor was
walking in the woods behind the target one day and was shot in the leg by George. Intentional
acts are never covered by insurance, however, the claim filed by the injured neighbor may be
covered under George's liability coverage. Which of the following is the most likely reason why?
- CORRECT ANSWER Shooting the gun was an intentional act committed by George, but the
consequences of act (his neighbor being shot) were not intended
, The duties of the insured after a loss are included in insurance policy language to: - CORRECT
ANSWER Assist in the adjuster's investigation of the claim
The perils insured against by a Homeowners policy are contained within the: - CORRECT
ANSWER Insuring Agreements
Under a standard HO-3, the limit for Coverage C -- Personal Property for a one or two-family
dwelling: - CORRECT ANSWER Is set at 50% of Coverage A
Which of the following flood zones show a "flood depth" instead of a "base flood elevation" on a
FIRM? - CORRECT ANSWER AO
North Carolina law stipulates that buildings located within the state that are covered under a Fire
policy and suffer a total loss, the insurance company: - CORRECT ANSWER Is not liable to
pay amounts beyond the actual cash value of the insured property at the time of the loss or
damage
Which of the following is generally not considered to be a legal defense against claims of
negligence? - CORRECT ANSWER The loss to the plaintiff was caused intentionally by the
defendant. .
All of the following are true regarding the "Write Your Own" program of the NFIP, EXCEPT: -
CORRECT ANSWER Insurers are required to participate in the program
How are death benefits calculated for an employee who has died as a result of a work related
incident? - CORRECT ANSWER 66 2/3% of the employee's average weekly wage for 500
weeks
Sharon's North Carolina home is covered under a Homeowner's policy with a "Refrigerated
Property Coverage" endorsement attached. She stores large amounts of expensive meats in her
freezer at any given time. One morning, she doesn't hear the low hum of her freezer motor. When
she opens her freezer door, she finds that the freezer is no longer cold and all of her meat has
spoiled. Sharon collects her receipts and finds that the price of the spoiled meat totals $658 and
she submits a claim for this loss. How much will her insurer pay? - CORRECT ANSWER $500
Which of the following terms does NOT apply to workers compensation coverage in North
Carolina? - CORRECT ANSWER Temporary sick leave with benefits
Coverage D - Loss of Use on the Homeowners forms provides coverage for "Civil Authority
Prohibits Use" for: - CORRECT ANSWER No more than two weeks
All of the following statements are TRUE of the terms used in the standard workers'
compensation policy, EXCEPT: - CORRECT ANSWER "State" means any state of the United
States, the District of Columbia, and all territories and possessions.
