NC ADJUSTER LICENSE EXAM AND PRACTICE EXAM LATEST ACTUAL EXAM 300 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+

NC ADJUSTER LICENSE EXAM AND PRACTICE EXAM

LATEST 2023-2024 ACTUAL EXAM 300 QUESTIONS AND

CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)

|ALREADY GRADED A+

Which of the following statements is TRUE regarding nonwaiver agreements and

reservation of rights letters? - 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: - 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: - 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? - 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? -

ANSWER- Guests property

Public adjusters: - ANSWER- Adjust first-party property loss claims.

The custom farming endorsement is usually attached to a farmowners policy when

receipts exceed: - 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? - 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? - 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? - 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? - 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? - ANSWER- Products Liability

All of the following statements are true regarding a Personal Umbrella policy,

EXCEPT: - 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? - ANSWER- Medical

expense and lost wages

Farm liability coverages include each of the following, EXCEPT: - ANSWERProfessional liability

Which of the following statements about the Standard Fire Policy is correct?

I. A covered fire must be hostile, not friendly.

II. Lightning includes artificially generated electrical current. - ANSWER- I only

Gavin operates a small manufacturing plant and is covered under a Commercial

Property Business Income form. Under which of the following scenarios will

Gavin be covered? - ANSWER- His loss of profit while out of business as a result

of a fire loss

The retroactive date on a claims-made CGL form specifies: - ANSWER- That

losses occurring before the date will not be covered by the policy.

A leased vehicle is considered to be a covered auto under the personal auto policy

(PAP) if it is a private passenger auto leased for at least: - ANSWER- 6

consecutive months

An insured's boat is struck by another boat. He and his family are injured. His boat

sinks because of the damage. An investigation determines that the party that caused

the accident is not insured. If the insured carries a watercraft policy, what

coverages would apply? - ANSWER- Uninsured boater's coverage and hull

insurance

Mark is injured at work in a state that provides a TTD benefit at 66 2/3%, the state

minimum is $40 and the state maximum is $540. The waiting period is 3 days and

the retroactive period is 15 days. Which of the following is Mark's TTD benefit if

he earns $20 per hour and usually works a 40-hour week. Mark is injured on July

14th and does not return to work until September 3rd. Which of the following is

the amount of TTD benefit he would have received? - ANSWER- $3,809.50.

Mr. Vickers lives close to a river that has, on occasion, flooded. On Friday

morning he is watching the weather station and notes that there is a flood warning

in his area. He calls his agent and asks the agent to bind flood coverage

immediately. Which of the following is true? - ANSWER- The application for

coverage requires a 30-day waiting period before coverage applies. .

What is an administrator's bond? - ANSWER- A bond required by the court of the

administrator of the estate of the deceased

Section II of the Business Auto policy provides the details of the insurer's "duty to

defend" the insured in a lawsuit. This duty is more broad than the insurer's

responsibility to pay any damages for which the insured is liable. Which of the

following describes this broadened duty on the BAP? - ANSWER- The BAP "duty

to defend" extends to providing a defense against fraudulent claims. .

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

A blanket employee dishonesty bond will: - ANSWER- Does not name the

individuals.