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NC Adjuster License Exam Prep Material Newest
2025/2026 Complete 100 Questions And Correct
Detailed Answers (Verified Answers)|Brand New
Version!
Spencer is covered under a standard Personal Automobile policy with a
policy inception date of October 15th. Additionally, the policy will
expire on October 15th of the current year. Spencer contacts his agent on
October 7th and asks to have an new endorsement added to his policy.
The agent agrees, adds the coverage the same day, and informs Spencer
that there will be an additional premium of $20 per month charged.
When will the adjustment of premium be effective for Spencer? -
ANSWER-October 7th
A blanket employee dishonesty bond will: - ANSWER-Does not name
the individuals.
Under what circumstances does an insurer allow the transfer of an
insured's rights and duties under a Commercial Package Policy without
the permission of the insurer? - ANSWER-When the named insured dies
An insured has purchased a DP-3 policy to cover his dwelling that is
valued at a replacement cost of $100,000. He insures it for $60,000 and
later suffers a $30,000 fire loss. Which of the following amounts will be
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paid by the policy (if no deductible form is attached)? - ANSWER-
$22,500
The insuring agreements of an Equipment Breakdown policy, provides
coverage for: - ANSWER-First party coverages and property damage to
property of others
If the insured, covered under a Homeowners policy, suffers the loss of an
article that is part of a pair or set. All of the following are options for the
insurer to settle the loss, EXCEPT: - ANSWER-Pay for the replacement
cost of the entire pair or set
When someone dies without a will, their assets will be handled by a
court appointed: - ANSWER-Administrator.
Emily owns a home that she has covered under a Homeowners policy.
Because Emily lives alone, she had to leave her home and stay with her
parents for the past six months while she recovers from major surgery.
Except for the day-to-day items that Emily needs while she stays at her
parents' home, all of her other belongings are still located in her home.
Which of the following best describes the condition of Emily's home? -
ANSWER-Unoccupied
The insured carries a yacht policy. One of the crew members is injured
while performing a work related task. What coverage must be added
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under the policy that would respond to cover the crew member's
injuries? - ANSWER-Jones Act
In most states, which of the following most accurately describes an
"admitted insurer"? - ANSWER-An insurer that can transact insurance in
the state under a certificate of authority
The wording of the Standard Fire policy is so vague that many insurers
have to rely on __________ to take a position on the acceptance or
denial of a claim. - ANSWER-Case law
Under the North Carolina personal automobile policy, the number of
days an insured has to report a newly acquired vehicle to the insurer is: -
ANSWER-30 days
The additional coverage of the Commercial Property cause of loss forms
known as the "Limited Coverage for Fungus, Wet Rot, Dry Rot, and
Bacteria" provides: - ANSWER-$15,000 coverage for all occurrences
within a 12-month period
The broad and special dwelling forms (DP-2 and DP-3) will provide
replacement cost coverage for buildings if the amount of insurance
written on the building is at least: - ANSWER-80% of the full
replacement cost at the time of the loss
NC Adjuster License Exam Prep Material Newest
2025/2026 Complete 100 Questions And Correct
Detailed Answers (Verified Answers)|Brand New
Version!
Spencer is covered under a standard Personal Automobile policy with a
policy inception date of October 15th. Additionally, the policy will
expire on October 15th of the current year. Spencer contacts his agent on
October 7th and asks to have an new endorsement added to his policy.
The agent agrees, adds the coverage the same day, and informs Spencer
that there will be an additional premium of $20 per month charged.
When will the adjustment of premium be effective for Spencer? -
ANSWER-October 7th
A blanket employee dishonesty bond will: - ANSWER-Does not name
the individuals.
Under what circumstances does an insurer allow the transfer of an
insured's rights and duties under a Commercial Package Policy without
the permission of the insurer? - ANSWER-When the named insured dies
An insured has purchased a DP-3 policy to cover his dwelling that is
valued at a replacement cost of $100,000. He insures it for $60,000 and
later suffers a $30,000 fire loss. Which of the following amounts will be
,2|Page
paid by the policy (if no deductible form is attached)? - ANSWER-
$22,500
The insuring agreements of an Equipment Breakdown policy, provides
coverage for: - ANSWER-First party coverages and property damage to
property of others
If the insured, covered under a Homeowners policy, suffers the loss of an
article that is part of a pair or set. All of the following are options for the
insurer to settle the loss, EXCEPT: - ANSWER-Pay for the replacement
cost of the entire pair or set
When someone dies without a will, their assets will be handled by a
court appointed: - ANSWER-Administrator.
Emily owns a home that she has covered under a Homeowners policy.
Because Emily lives alone, she had to leave her home and stay with her
parents for the past six months while she recovers from major surgery.
Except for the day-to-day items that Emily needs while she stays at her
parents' home, all of her other belongings are still located in her home.
Which of the following best describes the condition of Emily's home? -
ANSWER-Unoccupied
The insured carries a yacht policy. One of the crew members is injured
while performing a work related task. What coverage must be added
, 3|Page
under the policy that would respond to cover the crew member's
injuries? - ANSWER-Jones Act
In most states, which of the following most accurately describes an
"admitted insurer"? - ANSWER-An insurer that can transact insurance in
the state under a certificate of authority
The wording of the Standard Fire policy is so vague that many insurers
have to rely on __________ to take a position on the acceptance or
denial of a claim. - ANSWER-Case law
Under the North Carolina personal automobile policy, the number of
days an insured has to report a newly acquired vehicle to the insurer is: -
ANSWER-30 days
The additional coverage of the Commercial Property cause of loss forms
known as the "Limited Coverage for Fungus, Wet Rot, Dry Rot, and
Bacteria" provides: - ANSWER-$15,000 coverage for all occurrences
within a 12-month period
The broad and special dwelling forms (DP-2 and DP-3) will provide
replacement cost coverage for buildings if the amount of insurance
written on the building is at least: - ANSWER-80% of the full
replacement cost at the time of the loss
