N.C. Claims Adjuster Exam Q&As Latest Update (329Qs with 100% CORRECT ANSWERs)
Question : Inception/Expiration Date
CORRECT ANSWER : an insurance policy covers the
insured starting at 12:01am on the day on which coverage
begins and expires at 12:01am on the expiration day of the
policy.
Question : Occurrence Date
CORRECT ANSWER : Date of which the loss occurred
Question : Identification of parties involved
CORRECT ANSWER : The loss report should include the
names and addresses of the parties involved in the loss, the names and addresses of any injured person(s) and the names and addresses of any witness(s).
Question : Policy Form/Number
CORRECT ANSWER : Identifies the type of coverage
purchased (policy form) and the policy number for the particular policy purchased by the insured.
Question : Description of the Loss
CORRECT ANSWER : Information concerning how, when
and where the accident or loss happened is an essential element in any loss report.
Question : Coverage
CORRECT ANSWER : Shows the type of coverage(s)
purchased as well as the limits of coverage purchased.
Question : Damages - Special Compensatory damages
CORRECT ANSWER : Are amounts paid to compensate the
plaintiff for direct expenses such as medical treatment, lost wages (both past and future), funeral expenses and rehabilitation expenses required because of bodily injury.Special damages are paid for losses that can be determined and documented. They are often referred to as "out-of-pocket" expenses.
Question : Damages - General Compensatory Damages
CORRECT ANSWER : Are paid for losses that cannot be
specifically measured and itemized in order to compensate the plaintiff for things such as pain and suffering, loss of the use of an arm or leg, loss of vision, physical disfigurement and/or loss of consortium.
Question : Damages - Punitive Damages
CORRECT ANSWER : Are typically awarded to the
plaintiff in addition to compensatory damages when the defendants conduct has been especially malicious. Punitive damages are awarded to punish the defendant and to deter others from engaging in similar actions.
Question : Unfair Claims Settlement Practices
CORRECT ANSWER : 1. Knowingly misrepresenting
relevant facts or policy provisions relating to the coverage at issue. 2. Failing to acknowledge with reasonable promptness communications pertaining to claims. 3. Failing to adopt and implement reasonable standards for the prompt investigation of claims. 4. Arbitrary and unreasonable refusal to pay claims.
- Failing to affirm or deny coverage of claims within a
reasonable time after proof of loss has been completed. 6. Not attempting in good faith to make prompt, fair and equitable claims settlement when the insurer's liability has become reasonably clear. 7. Compelling insureds to institute suits to recover amounts due under a policy by offering substantially less to settle immediately. 8. Attempting to settle claims for less than the amount for which a reasonable person would believe one was entitled based on written or printed advertising material accompanying or made a part of an application. I. Attempting settlement of claims on the basis of applications that were altered without notice to knowledge of or consent of insureds.
Question : Total Losses on Motor Vehicles/Miscellaneous
Provisions
CORRECT ANSWER : 1. If the insurer and the claimant are
unable to reach an agreement as to the value of the vehicle, the insurer shall base any further settlement offer not only on the published regional average value of similar vehicles, but also on the value of the vehicle in the local market. 2. Local market value shall be determined by using either the local price of a comparable vehicle or if no comparable vehicle can