2025 NC Adjuster License Exam New Latest Exam
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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
Coverage for all reasonable expenses incurred by an insured in order to continue as nearly as
practicable the normal operation of his/her business after a loss is: ----------- Correct Answer -----
------ Extra Expense Coverage.
All of the following statements are TRUE about Workers Compensation benefits, EXCEPT: -----
------ Correct Answer ----------- Waiting periods apply to medical and disability benefits.
Which of the following statements is CORRECT concerning the "newly acquired or constructed"
building in the Buildings and Personal Property (BPP) policy? ----------- Correct Answer ---------
---- The premium for the newly acquired building will be charged from the first day of
acquisition.
J owns a small commercial building valued at $100,000. J carries $50,000 coverage with an 80%
coinsurance requirement. The building sustains fire damage in the amount of $40,000. How
much would J collect from the insurer for his loss? ----------- Correct Answer -------------
$25,000.00
In the Business Owners Policy (BOP), fire department service charges are paid in the amount of
$____. ----------- Correct Answer ------------- $1,000.00
Which of the following statements about the Business Owners Policy (BOP) business income
coverage is CORRECT? ----------- Correct Answer ------------- It pays the net income that the
insured would have received had no loss occurred.
All of the following are exceptions to the workers' compensation exclusive remedy, EXCEPT: --
--------- Correct Answer ----------- An on-the-job injury caused by worker fatigue from working
an excessive number of over-time hours..
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.
Under the comprehensive coverage of a Business Auto policy, which of the following would not
be a covered loss? ----------- Correct Answer ----------- After sliding on an icy pavement, a driver
hits a guard rail.
,The Insurance Information & Privacy Protection Act (IIPPA) requires insurers to conform to all
of the following standards, EXCEPT: ----------- Correct Answer ----------- Give reasonable notice
for policy renewal and other policy changes..
The Section I Additional Coverage of the standard Businessowners policy provides coverage for
"Debris Removal". Which of the following statements best describes the limit for this coverage?
----------- Correct Answer ----------- The total limit may be up to 25% of the policy limit for the
loss payable with the deductible included, plus up to an additional $25,000 if the policy limits are
exhausted
When would the Personal Auto policy respond to a loss with an all-terrain three-wheeled
vehicle? ----------- Correct Answer ----------- When used in an emergency situation
Sarah is shopping at a grocery store and wants to purchase a bottle of juice. The aisle is marked
off with a rope awaiting the clerk to clean up a previously broken bottle and spill on the floor.
Sarah moves the rope to get the item and slips and falls on the floor, cutting her face on the
scattered glass. Which of the following would be the defense that the insurance company would
most likely use in this situation? ----------- Correct Answer ----------- Assumption of risk and
contributory negligence on the part of the customer
All of the following are excluded under the 1943 Standard Fire policy, EXCEPT: -----------
Correct Answer ----------- The theft of property after it had been removed from the insured
premises to protect it from further loss..
Which of the following statements is NOT TRUE regarding the "period of restoration" for
Business Income and Extra Expense coverage? ----------- Correct Answer ----------- The period of
restoration ends when the policy period ends
Fidelity bonds are used to cover: ----------- Correct Answer ----------- Employee dishonesty
Violating a cease and desist order issued by the North Carolina Commissioner after finding a
violation of the Unfair Practices will result in a a monetary fine of: ----------- Correct Answer ----
------- A sum of not less than $1,000 nor more than $5,000 for each violation
A licensee, for the second time, does not maintain records of insurance transactions as prescribed
by the North Carolina Commissioner. He/she will: ----------- Correct Answer ----------- Have
their license suspended or revoked for a one year period
Which of the following endorsements can be attached to the Business Auto policy to extend
coverage to individuals such as the owner of the business who does not carry personal auto
insurance? ----------- Correct Answer ----------- Drive Other Car endorsement
Under the "Money Orders and Counterfeit Money" insuring agreement of a standard Commercial
Crime form, all would be covered, EXCEPT: ----------- Correct Answer ----------- Taking a
forged check from a customer in exchange for merchandise..
, Which of the following statements is TRUE regarding nonwaiver agreements and reservation of
rights letters? ----------- Correct Answer ----------- The are used only with first-party claimants to
protect the rights of insureds and insurers.
All of the following are reasons that an adjuster should keep very detailed log notes, EXCEPT: --
--------- Correct Answer ----------- To produce notes that will support a fraudulent denial of
claims.
All of the following are excluded under the Commercial Building and Personal Property form,
EXCEPT: ----------- Correct Answer ----------- Furniture and fixtures
An insured carries property insurance with a limit of $25,000 and an 80% coinsurance
requirement. The covered building, however, is worth $40,000. How much would she collect in
the event of a total loss? ----------- Correct Answer ----------- $25,000.
A guest on vacation deposits cash and traveler's checks in the hotel safe deposit box located
behind the front desk. When the guest attempts to retrieve them, the box is empty. What
coverage is required to cover this loss for the hotel? ----------- Correct Answer ----------- Guests
property
Public adjusters: ----------- Correct Answer ----------- Adjust first-party property loss claims.
The custom farming endorsement is usually attached to a farmowners policy when receipts
exceed: ----------- Correct Answer ----------- $5,000
Which of the following statements is correct regarding pollution coverage under the special
cause of loss form of a Commercial Property policy? ----------- Correct Answer ----------- It is
excluded unless it was caused by a covered peril
With respects to insurers writing auto coverage in the North Carolina, which of the following is
true regarding the North Carolina Motor Vehicle Reinsurance Facility? ----------- Correct Answer
----------- All insurance companies writing auto coverage must participate in this program
Underground gasoline tanks on an insured's property leak damaging the property next door.
Which policy would pay for clean up? ----------- Correct Answer ----------- Pollution Liability
endorsement
The insured is liable for $500,000 in damages for a personal injury claim that is covered under
the insured's primary liability policy. The primary liability policy has a $300,000 limit per
occurrence. The insured also has a $1 million Umbrella policy with a $3,000 self-insured
retention limit. How would this claim likely be settled? ----------- Correct Answer ----------- The
primary policy would pay $300,000 and the Umbrella policy would pay $200,000
A customer has eaten seafood in a restaurant and became very ill while still in the restaurant.
What type of CGL claim is this? ----------- Correct Answer ----------- Products Liability
