N.C. Claims Adjuster Exam QAs Latest

N.C. Claims Adjuster Exam Q&As Latest Update (329Qs with 100% CORRECT ANSWERs)

Question 1: The most common method of risk management

is:

• The sharing of risk
• The assumption of risk
• The transfer of risk
• Risk avoidance

CORRECT ANSWER : C. The transfer of risk

Question 2: Which of the following types of risk is associated

with change is not insurable?

• Fundamental risk
• Particular risk
• Dynamic risk

• Static risk

CORRECT ANSWER : C. Dynamic risk

Question 3: Insurers are able to calculate their probable losses

and to establish the rates for premiums that will cover losses

and operating expenses, by using:

• Insurable interest
• Insurance
• The principle of indemnity
• The law of large numbers

CORRECT ANSWER : D. The law of large numbers

Question 4: The process by which an insurance company

selects certain types of risks that have historically produced a profit, and rejecting those risks that have historically

produced a loss, is known as:

• Underwriting
• Reinsurance
• Risk avoidance
• Risk control

CORRECT ANSWER : A. Underwriting

Question 5: Which of the following "hazards" arise out of an

insured's attitude of apathy toward causing or preventing a loss?

• A dynamic hazard
• A moral hazard
• A morale hazard
• A physical hazard

CORRECT ANSWER : C. A morale hazard

Question 6: Concealment

• Is the failure of the insured to reveal material facts when

applying for insurance

• Is an insurance company making untrue statements

regarding the provisions of an insurance policy

• Is making untrue statements on an application for

insurance

• Is lying when asked a direct question regarding an item on

an insurance policy

CORRECT ANSWER : A. Is the failure of the insured to

reveal material facts when applying for insurance

Question 7: All of the following are elements of a valid

contract, EXCEPT:

• Consideration
• Executory condition
• Offer and acceptance
• Competent parties