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NC ADJUSTER LICENSE EXAM WITH 2 ACTUAL EXAMS
AND PRACTICE EXAM 350 QUESTIONS AND ANWERS
BEST STUDY GUIDE TO STUDY FOR NC ADJUSTER
LICENSE EXAM
NC ADJUSTER LICENSE ACTUAL EXAM A
Which of the following is TRUE regarding deductibles that pertain to Part D of the standardized Personal Automobile policy? - ANSWER-There are separate deductible amounts, chosen by the insured, for the "Collision" coverage and the "Other Than Collision" coverage..
An "insured" under an unendorsed Homeowners policy can be all of the following, EXCEPT: - ANSWER-A childhood friend of the named insured who is visiting for a month from England.
An oral or written contract for temporary insurance is referred to as a: - ANSWER-Binder
The Coverage C - Uninsured Motorists coverage of a standard, unendorsed Personal Automobile policy applies to all of the following, EXCEPT: - ANSWER-Property damage sustained by the insured vehicle by an uninsured vehicle..
The Builders' Risk form provides an extension of coverage for building materials within 100 feet of the building being constructed and belonging to others, but under the care, custody, and
control of the insured for up to: - ANSWER-$5,000
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2 All of the following are characteristics of an insurable risk, EXCEPT: - ANSWER-The loss must be catastrophic in nature.
Which of the following endorsements permits the insured under a Commercial Property policy to increase their business personal property coverage amount for specified periods of time when inventory may be higher than usual? - ANSWER-Peak Season Endorsement.
Of the following businesses, which one is NOT eligible for coverage under a Businessowners policy? - ANSWER-An auto dealership with $1 million dollars in gross annual sales..
All of the following "personal effects" would be covered by the Part D -- Additional Coverage of
the Personal Watercraft, EXCEPT: - ANSWER-jewelry
An alternative dispute resolution (ADR) method by which disputing parties use a neutral outside party to examine the issues and develop a settlement, which is a final binding decision is known
as: - ANSWER-Arbitration
An insured has an auto accident and sustains bodily injury worth $50,000. The responsible party carries auto liability limits of 15/30/15 which provides $15,000 for bodily injury for any one person per occurrence. The insured carries Underinsured Motorist limits providing $100,000 bodily injury for any one person per occurrence. Therefore, the responsible party's policy will pay its limit of $15,000 and the insured's Underinsured Motorist policy will pay: - ANSWER-
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Which of the following situations would NOT be considered an unfair claim settlement practice according to the NAIC Model Act? - ANSWER-Indemnify Insurance pays thousands of claims per year, but on two of those claims they failed to accept or deny the claim within the time frame required by state law
A claim is made on an excess liability policy. It is discovered during the claims investigation, that the underlying liability policy and the excess liability policy have different inception and expiration dates. The adjuster finds that the different dates has created a situation where the underlying policy was not in effect at the time of the occurrence, and therefore cannot trigger the excess liability policy to pay the claim. This situation is known as: - ANSWER- Nonconcurrency.
The auto liability limits $100/300/50 are an example of: - ANSWER-split limits
The insured is covered under a standard HO-5 policy. What coverage does the insured have for personal property? - ANSWER-open perils
Which of the following is used to bring a standardized insurance form into compliance with state laws? - ANSWER-Endorsements.
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4 When an insurer files a declaratory judgement action with a court of law, all of the following questions will be resolved by the court, EXCEPT: - ANSWER-Will the insurer become insolvent if they pay the claim as submitted by the insured?
The freight charge is paid by the shipper to the carrier: - ANSWER-When the cargo has been delivered to its destination point.
Joe makes a small down payment on a sports car and finances the remainder of the cost of the car with Benevolent Bank, Inc. He also purchases a standard Personal Automobile policy through Binders Keepers Insurance Company to cover the car. Joe makes one car payment before he is caught with $200,000 of drugs in the car on his way to deliver it to addicts for money. Joe is arrested and the car is permanently confiscated by the authorities. How will coverage apply in this situation? - ANSWER-The policy will cover the damage to the body of the automobile on behalf of Benevolent Bank, Inc.
Imogene has purchased a personal auto policy including Parts A through D. She is driving to work one day and rolls through a stop sign, crashing into the car that had the right-of-way in an intersection. Imogene submits a claim for the accident. Which of the following would NOT be included in her claims payment? - ANSWER-The transmission problem Imogene was having prior to the accident..
Which of the following watercraft would be covered under Section II - Liability of the Homeowners forms? - ANSWER-A watercraft in storage.
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