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NC ADJUSTER LICENSE EXAM 2024-2025
COMPLETE 135 ACTUAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS/
GRADED A+
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 Do right find 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 1 / 3
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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
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
Which of the following statements defines a "bailee"? - Correct Answer - Someone, other than the insured, to whom the insured property is entrusted temporarily.
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
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pg. 3 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
All of the following are types of rehabilitative services provided under a workers'
compensation policy, EXCEPT: - Correct Answer - Substance abuse
All of the following statements are true regarding a Personal Umbrella policy, EXCEPT: - Correct Answer - The policy can be written as a monoline policy
Which of the following would be considered "economic losses" that could result in compensatory damages being awarded in a negligence case? - Correct Answer - Medical expense and lost wages
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
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