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UPDATED NC ADJUSTER LICENSE
PRACTICE EXAM QUESTI ONS
WITH CORRECT ANSWERS
ALREADY PASSED AND V ERIFIED
Question : Smith and Jones own a building equally with
an actual cash value of $100,000. It is insured for $100,000 in the name of Smith only, and burns to the ground.
- Smith gets all $100,000.
II. Smith and Jones share equally in the $100,000.III. Smith gets $50,000.IV. Jones gets nothing.A)I only.B)I and IV.C)III only.D)III and IV.
Correct Answer: D)III and IV.
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Question : Which of the following practices are
considered unfairly discriminatory?A)Refusal to issue property coverage due to the occupancy (use) of the structure.B)Adding a surcharge on automobile liability insurance due to the age of the operator.C)Placing coverage in a residual market due to information supplied by a consumer reporting service.D)Reducing rates for a specific class of insureds without reducing rates for all insureds.
Correct Answer: B)Adding a surcharge on automobile
liability insurance due to the age of the operator.
Question : Coverage under a vandalism and malicious
mischief endorsement added to the standard fire policy is
suspended if a building is left vacant for more than:
A)15 consecutive days B)30 consecutive days.C)60 consecutive days.D)90 consecutive days.
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Correct Answer: C)60 consecutive days.
Question : A peril can be defined as: A)The transfer of pure risk.B)The cause of a loss.C)A one-time event definite in time and place.D)A condition increasing the chance of loss.
Correct Answer: B)The cause of a loss.
Question : Which of the following statements is true?
A)Agents can bind coverage.B)Agents and brokers represent insurance companies.C)Brokers can bind coverage.D)Agents in the field of Property and Casualty insurance issue conditional receipts.
Correct Answer: A)Agents can bind coverage.
Question : Which of the following losses is covered under
a SFP with the VMM endorsement?
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- Theft of a TV set by vandals.
II. Vandalism on February 1st of a property that has been vacant since January 1st.III. Damage caused by an individual spray-painting graffiti on the dwelling.
Correct Answer: III. Damage caused by an individual
spray-painting graffiti on the dwelling.
Question : All of the following are essential elements in
an insurance contract EXCEPT:
A)Agreement.B)Consideration.C)Competent parties.D)Counter-offer.
Correct Answer: D)Counter-offer.
Question : The Standard Fire policy insuring agreement
covers: I. Lightning.II. Removal of contents from
endangered premises.III. Water damage caused by firemen putting out a fire at the insured premises.