NC INSURANCE ADJUSTERS EXAMS PACKAGE DEAL QUESTIONS AND ANSWERS WITH VERIFIED SOLUTIONS UPDATED 2025

STANDARD FIRE POLICY (SPF) - ANSWER -introduced in NY in 1873 as first standardized Property insurance policy -NC adopted in 1943 -basis for non-marine Property contract in NC and is attached to all Commercial Prop. insurance contracts SFP Covered Perils - ANSWER -originally written as 165 mono...

Company A has 5,000 policyholders. Company B has 25,000 policyholders. Company B is able to make more accurate predictions concerning the number of claims it will have to pay than Company A because: - ANSWER As the number of risks increases, the ability to make accurate predictions increases also. T...

Insurance Services Office - ANSWER Calculates rates and creates policy forms such as homeowners and auto for property and casualty insurers. National Association of Insurance Commissioners (NAIC) - ANSWER governing org. for all state insurance commissioners, directors. Works towards standardizati...

Insurance - ANSWER - a plan of spreading the risk of possible loss over a large number of people (Law of Large Numbers) - protects against the risk (uncertainty) of when a financial loss might occur Speculative Risk - ANSWER - when there is a chance of gain as well as a chance of loss (ex: buyin...

The standard Fire policy without endorsements covers accounts, bills, currency, deeds, evidence of debt, money or securities: Select one: a. While contained in building described in policy. b. Under no circumstances. c. For an amount not in excess of $100. d. For an amount not in excess of $500...

Liability Insurance PAP (Part A) - ANSWER Pays all the sums and insured must legally pay as damage due to BI/PD caused by an accident and resulting from the ownership, maintenance or use of a covered auto. Coverage Part A through F of a PAP - ANSWER A. Liability B. Medical Payments C. UM/UIM D...

Which of the following statements best describes subrogation? a. The insurance company may recover costs to make their insured "whole" from another party assuming the other party was responsible for the accident. b. An insured can collect for his loss from his own insurance company and als...

FIRE POLICY CLAUSE - ANSWER The insuring clause indicates that the insurer provides the named insured and legal representatives, to the extent of the insured's interest, with coverage on property described in the declarations for the policy term shown in the declarations FIRE POLICY COVERAGE -...