North Carolina Adjuster Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the North Carolina Adjuster Exam with confidence! Our quiz features multiple-choice questions, useful hints, and detailed explanations to ensure you are well-prepared for your upcoming exam.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

In order to be considered "fully insured" at 80% or more, how much coverage must Richard carry on his home valued at $300,000?

$300,000
$240,000
$180,000
$260,000

The correct answer is: $240,000

To determine the amount of coverage Richard must carry on his home to be considered "fully insured" at 80% or more, you need to calculate 80% of the home's value. The home's value is $300,000. To find 80% of this value, multiply $300,000 by 0.80: $300,000 x 0.80 = $240,000. This calculation shows that Richard must carry at least $240,000 in coverage. Carrying this amount ensures that he meets the 80% threshold necessary to avoid penalties in the event of a claim, ensuring he is adequately protected and can fully benefit from his policy if the need arises. This understanding is crucial for anyone in the insurance field, as it highlights the importance of maintaining appropriate coverage levels to safeguard against potential losses effectively.