NC ADJUSTER LICENSE PRACTICE EXAM

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NC ADJUSTER LICENSE PRACTICE EXAM

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -100 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: 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?

Answer:

Assumption of risk and contributory negligence on the part of the customer Question 2: 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:

Answer:

Is not liable to pay amounts beyond the actual cash value of the insured property at the time of the loss or damage Question 3: The condition "Legal Action Against Us" in a CGL policy requires the insured to:

Answer:

Comply with all of the terms of the policy

Question 4: The basic limit for Coverage F -- Medical Payments of the standard Homeowners

forms is:

Answer:

$1,000 per person Question 5: Torts that can be covered by insurance policies include all of the following,

EXCEPT:

Answer:

Intentional torts purposely committed to cause harm to another.Question 6: The insured carries a yacht policy. One of the crew members is injured while performing a work related task. What coverage must be added under the policy that would respond to cover the crew member's injuries?

Answer:

Jones Act Question 7: Oliver Dogwood was in an auto accident which destroyed his car. While investigating the accident, Adjuster Doright found 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?

Answer:

$2,150

Question 8: Which of the following statements defines a "bailee"?

Answer:

Someone, other than the insured, to whom the insured property is entrusted temporarily.Question 9: The retroactive date on a claims-made CGL form specifies:

Answer:

That losses occurring before the date will not be covered by the policy.Question 10: 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?

Answer:

Drive Other Car endorsement

Question 11: 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 Question 12: 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?

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 Question 13: Which of the following coverage endorsements under commercial crime and bonding would cover an ATM machine?

Answer:

Automated Teller Machine Coverage Question 14: 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?

Answer:

All insurance companies writing auto coverage must participate in this program Question 15: 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 Question 16: What coverage under the BOP automatically applies if a customer slips and falls on the named insured's premises, regardless of legal liability?

Answer:

Medical expense coverage

Question 17: The Insurance Information & Privacy Protection Act (IIPPA) requires insurers to

conform to all of the following standards, EXCEPT:

Answer:

Give reasonable notice for policy renewal and other policy changes..Question 18: The insured has a $1,000,000 personal umbrella policy with a $5,000 retention limit.For a $7,000 liability loss not covered under the insured's personal auto policy, but covered

under the umbrella policy, the insurance company would pay:

Answer:

$2,000

Question 19: A customer has eaten seafood in a restaurant and became very ill while still in the restaurant. What type of CGL claim is this?

Answer:

Products Liability Question 20: All of the following are excluded under the Commercial Building and Personal

Property form, EXCEPT:

Answer:

Furniture and fixtures Question 21: Underground gasoline tanks on an insured's property leak damaging the property next door. Which policy would pay for clean up?

Answer:

Pollution Liability endorsement Question 22: Which of the following is NOT a reason to purchase a Dwelling policy instead of a Homeowners policy?

Answer:

The Dwelling policy provides higher limits of liability than the Homeowners policy..Question 23: Public adjusters:

Answer:

Adjust first-party property loss claims.