NC ADJUSTER LICENSE PRACTICE

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NC ADJUSTER LICENSE PRACTICE

EXAM

• Which sections of the Standard Fire policy are found on the

first page of the policy? - correct answer- The Declarations page and the Insuring Agreement

• Kim owns an Art studio where she offers painting lessons

and sells painting and art supplies. She carries a Commercial General Liability policy to cover her business.Which of the following situations would be covered by Kim's CGL insurance? - correct answer- A client slips and falls on wet paint that was dripped on the floor in Kim's art studio.The client breaks her arm.

• The North Carolina Insurance Code has established a

penalty for willfully making false statements in a financial

statement. The violator is considered: - correct answer-

Guilty of a Class I felony and can be subject to a fine of not less than $2,000, nor more than $10,000

• To be eligible for coverage under a standardized Dwelling

policy, the insured must not allow more than _______ boarders to live on the premises. - correct answer- 5

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• Jeff has his 1974 Pontiac Firebird Trans-Am SD-455 covered

under a standardized personal automobile policy. He has had a full restoration done to both the interior and exterior of his muscle car and he can't wait to show it off. When Jeff's buddy Dale sees the car, he challenges Jeff to race against him in his 1971 Chevy Camaro SS350. Jeff accepts the challenge and the two men set a date for the following week.The following week, many people find out about the race and come out to watch on race day. Shortly after the race begins, Jeff loses control of his car when a tire blows out and he swerves into the crowd of people watching the race, injuring several. He is sued for bodily injury. Which of the following statements best describes how Part A of Jeff's personal auto policy will cover the costs to defend the claims against Jeff? - correct answer- The insurer will not defend against the claim because it is not covered under the policy

• 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.

• All of the following are exceptions to the workers'

compensation exclusive remedy, EXCEPT: - correct answer- 2 / 4

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An on-the-job injury caused by worker fatigue from working an excessive number of over-time hours..

• Under a Business Auto policy, which coverage symbol

indicates that a car is subject to mandatory no-fault insurance as required by state law? - correct answer- 5

• Philip has several vehicles that are all covered under

Personal Automobile policies. He has several acres of land with a barn and chicken coup on the property. To drive around on the acreage, Philip has a very old truck that is not licensed or insured. One afternoon, Philip is driving out to check on his cows when he hits a rut and his head slams down on the steering wheel, injuring him severely. How will Part B - Medical Payments provide coverage for Philip's injuries? - correct answer- Bodily injury sustained while occupying an uninsured auto owned by the insured is excluded under Part B, therefore no coverage would apply

• An insured who would like to cover an employee while

driving their own car on company time would need which of the following endorsements? - correct answer- Employees as Insureds endorsement

• Under the "Emergency Program" in all states except

Alaska and Hawaii, the National Flood Insurance Program 3 / 4

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will insure a single-family residence for up to: - correct

answer- $35,000.

• Which of the following statements is true about the

Standard Fire Policy? - correct answer- Standard Fire Policy is no longer used in its original format

• Which of the following Commercial Property cause of loss

forms include the additional coverage for "Fungus, Wet Rot, Dry Rot, and Bacterial"? - correct answer- The basic, broad, and special cause of loss forms..

15. Homeowners policies cover all of the following, EXCEPT: -

correct answer- A 2-family dwelling occupied by tenants who are renting the covered premises from the named insured..

• Alec goes to an amusement park and rides a roller coaster

that was designed to flip the riders upside down. Alec is taller than the average person so when the roller coaster flips, he hits his head on the safety bar. After receiving medical care, Alec files a claim against the amusement park, seeking payment for his medical bills, pain and suffering. What defense against negligence would the amusement park most likely use to deny this claim? - correct answer- Assumption of Risk

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