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Free South Carolina Property, Casualty, Surety, And Marine Insurance Adjuster Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the South Carolina Property, Casualty, Surety, And Marine Insurance Adjuster practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1Who may issue bulletins, orders, or regulations needed to carry out South Carolina's adjuster chapter?

    1. A. The insurance director
    2. B. The Attorney General
    3. C. The Workers' Compensation Commission chair
    4. D. The clerk of the court of common pleas

    Answer: A

    Explanation: The current adjuster law states, "The director may issue bulletins or orders or promulgate regulations" as necessary or proper. The insurance director is therefore the authorized official.

    Reference: 2025-2026 Bill 196: Insurance Adjusters — Section 38-91-200

  2. 2A dwelling insured under a South Carolina fire policy is a total fire loss. Subject to the valued-policy statute, what amount may the insured recover?

    1. A. The full amount of insurance
    2. B. Only the property's post-loss market value
    3. C. Only fifty percent of the policy limit
    4. D. The repair estimate less the land value

    Answer: A

    Explanation: For a total fire loss, "the insured is entitled to recover the full amount of insurance." This is South Carolina's stated-value rule for the covered property.

    Reference: Code of Laws - Title 38 - Chapter 75- - INSURANCE — Section 38-75-20

  3. 3A covered building sustains only a partial fire loss. What is the maximum recovery under Section 38-75-20?

    1. A. The actual loss, not exceeding the stated insurance amount
    2. B. The full policy amount regardless of damage
    3. C. Twice the repair cost if replacement is delayed
    4. D. The property's assessed tax value

    Answer: A

    Explanation: For a partial loss, recovery is "the actual amount of the loss but in no event more than the amount of the insurance stated."

    Reference: Code of Laws - Title 38 - Chapter 75- - INSURANCE — Section 38-75-20

  4. 4What minimum uninsured-motorist bodily injury limits apply per person and per accident in South Carolina?

    1. A. 15/30
    2. B. 20/40
    3. C. 25/50
    4. D. 50/100

    Answer: C

    Explanation: The uninsured-motorist limits may be "no less than the requirements of Section 38-77-140," which sets bodily injury limits of $25,000 per person and $50,000 per accident.

    Reference: Code of Laws - Title 38 - Chapter 77- - INSURANCE — Sections 38-77-150(A) and 38-77-140

  5. 5Before meeting a homeowners adjuster, a claimant needs a record that identifies each damaged possession for the claim. Which record serves that purpose?

    1. A. A collection of scene photographs showing damaged rooms.
    2. B. A contractor's estimate for repairing the dwelling.
    3. C. An itemized inventory of damaged personal property.
    4. D. A sworn proof stating the total amount demanded.

    Answer: C

    Explanation: The NAIC advises, "Make a list of all your damaged property." An itemized inventory identifies the damaged possessions for the adjuster; scene photos, a dwelling repair estimate and a sworn total-amount proof serve other claim-documentation functions.

    Reference: NAIC What You Need to Know When Filing a Homeowners Claim — Here are the steps you'll need to take

  6. 6After finding an adjuster violated the Insurance Code, how much notice must the Director give before imposing penalties under Section 38-91-190?

    1. A. Five days
    2. B. Ten days
    3. C. Twenty days
    4. D. Thirty days

    Answer: B

    Explanation: The statute authorizes the director to impose the referenced penalties "upon ten days' notice." The required notice is ten days.

    Reference: 2025-2026 Bill 196: Insurance Adjusters — Section 38-91-190

  7. 7Which property is outside South Carolina's fire-policy valued-loss rule in Section 38-75-20?

    1. A. Chattels or personal property
    2. B. A dwelling building
    3. C. A permanently installed garage
    4. D. A covered fixed structure

    Answer: A

    Explanation: The section expressly says, "This section does not apply to insurance on chattels or personal property." The building-focused rule therefore does not control those items.

    Reference: Code of Laws - Title 38 - Chapter 75- - INSURANCE — Section 38-75-20

  8. 8An adjuster must verify the policy number, effective dates, insured property address, and stated coverage limits before assessing a homeowners claim. Which policy part ordinarily supplies those facts?

    1. A. Exclusions section
    2. B. General conditions section
    3. C. Declarations page
    4. D. Insuring agreement

    Answer: C

    Explanation: The NAIC says the declarations page "identifies the policy number, the effective dates, the address of the insured property" and lists coverage limits. Those are the policy-specific facts needed here; the insuring agreement, exclusions, and conditions address other contract functions.

    Reference: NAIC Understanding Your Homeowners or Renter's Policy — The Policy, declaration/information page

  9. 9What minimum uninsured-motorist property-damage coverage must a South Carolina automobile policy provide for one accident?

    1. A. $10,000
    2. B. $15,000
    3. C. $25,000
    4. D. $50,000

    Answer: C

    Explanation: The provision must provide "no less than twenty-five thousand dollars' coverage" for injury to or destruction of insured property in one accident.

    Reference: Code of Laws - Title 38 - Chapter 77- - INSURANCE — Section 38-77-150(A)

  10. 10A covered fire damages a restaurant's building and forces a temporary shutdown that reduces its income. How should the two losses be classified for valuation?

    1. A. Building damage is direct; lost income is indirect.
    2. B. Building damage is indirect; lost income is direct.
    3. C. Both building damage and lost income are direct.
    4. D. Both building damage and lost income are indirect.

    Answer: A

    Explanation: The NAIC defines "Direct Loss - damage to covered real or personal property caused by a covered peril" and "Business Interruption - loss of income as a result of property damage to a business facility." Physical building damage is direct; earnings lost because of the damage are consequential or indirect.

    Reference: NAIC Glossary of Insurance Terms — Direct Loss

Topics in this practice bank

These topics describe the available practice for South Carolina Property, Casualty, Surety, And Marine Insurance Adjuster. Review the examination outline and its sources for scope and allocation details.

  • SOUTH CAROLINA INSURANCE LAWS AND REGULATIONS PERTINENT TO ALL ADJUSTERS
    • Director’s general duties and powers
    • Licensing requirements
    • Licensing requirements > Qualifications
    • Licensing requirements > Nonresident
    • Licensing requirements > Emergency adjuster permit
    • Maintenance and duration
    • Maintenance and duration > Change of address
    • Disciplinary actions
    • Disciplinary actions > Cease and desist orders
    • Disciplinary actions > Hearings
    • Disciplinary actions > Penalties
    • Claim settlement laws and regulations
    • South Carolina law, regulations and required provisions
    • South Carolina law, regulations and required provisions > South Carolina Property and Casualty Insurance Guaranty Association
    • South Carolina law, regulations and required provisions > Cancellation, nonrenewal and renewal
    • South Carolina law, regulations and required provisions > Insurance fraud act
    • South Carolina law, regulations and required provisions > Arbitration of property damage liability claims
    • South Carolina law, regulations and required provisions > Federal Terrorism Insurance Program
    • South Carolina law, regulations and required provisions > South Carolina Wind and Hail Underwriting Association (SCWHUA)
  • PROPERTY AND CASUALTY INSURANCE TERMS AND RELATED CONCEPTS
    • Insurable interest
    • Peril (named vs open)
    • Hazard (physical, moral, morale)
    • Deductible
    • Indemnity
    • Actual cash value
    • Replacement cost
    • Limits of liability (per occurrence/person, aggregate, split, combined single)
    • Coinsurance
    • Staff/Independent vs public adjuster
    • Other insurance (primary and excess, contribution by equal shares)
    • Liberalization
    • Vacancy and unoccupancy
    • Salvage
    • Abandonment
    • Liability (absolute, strict, vicarious)
    • Negligence, and defenses against
    • Pro-rata liability clause
    • Waiver and Estoppel
    • Market/agreed value vs state amount
    • Territory
  • PROPERTY AND CASUALTY CONTRACT PROVISIONS
    • Declarations
    • Insuring agreement
    • Conditions
    • Exclusions
    • Definitions
    • Duties of the insured after a loss
    • Obligations of the insurance company
    • Mortgagee rights
    • Proof of loss
    • Notice of claim
    • Appraisal
    • Assignment
    • Subrogation
    • Elements of a legal contract
    • Additional (supplementary) payments
    • Loss settlement provisions including consent to settle a loss
    • Endorsements
    • Loss payable clause
    • No benefit to bailee
    • Representations and warranties
  • POLICY KNOWLEDGE PERTINENT TO ADJUSTERS
    • Dwelling
    • Dwelling > Characteristics and purpose
    • Dwelling > Coverage Forms (Basic, Broad, Special)
    • Dwelling > Property Coverages (A-E)
    • Dwelling > Conditions and Exclusions
    • Dwelling > Selected Endorsements
    • Dwelling > Selected Endorsements > Special Provisions – South Carolina
    • Dwelling > Selected Endorsements > Automatic increase in insurance
    • Dwelling > Selected Endorsements > Broad theft coverage
    • Dwelling > Selected Endorsements > Dwelling under construction
    • Dwelling > Personal Liability supplement
    • Homeowners
    • Homeowners > Coverage forms (HO-2 through HO-6 & HO-8)
    • Homeowners > Section I – Property coverages
    • Homeowners > Section II – Liability coverages
    • Homeowners > Exclusions, Conditions, and Endorsements
    • Commercial lines
    • Commercial lines > Commercial Package Policy (CPP)
    • Commercial lines > Commercial property
    • Commercial lines > Commercial property > Building and personal property form
    • Commercial lines > Commercial property > Condominium forms (association/unit-owners)
    • Commercial lines > Commercial property > Causes of loss forms
    • Commercial lines > Commercial property > Builders risk
    • Commercial lines > Commercial property > Business income
    • Commercial lines > Commercial property > Legal liability
    • Commercial lines > Commercial property > Extra expense
    • Commercial lines > Commercial property > Condominium
    • Commercial lines > Commercial property > Conditions and exclusions
    • Commercial lines > Commercial property > Legal Liability
    • Commercial lines > Commercial property > Selected Endorsements (ordinance or law, spoilage, peak season limit of insurance, value reporting form)
    • Commercial lines > Commercial general liability (CGL)
    • Commercial lines > Commercial general liability (CGL) > Bodily injury and property damage liability
    • Commercial lines > Commercial general liability (CGL) > Personal and Advertising injury
    • Commercial lines > Commercial general liability (CGL) > Medical payments
    • Commercial lines > Commercial general liability (CGL) > Premises and Operations
    • Commercial lines > Commercial general liability (CGL) > Products Completed Operations
    • Commercial lines > Commercial general liability (CGL) > Occurrence vs claims-made
    • Commercial lines > Commercial general liability (CGL) > Definitions, Conditions, Exclusions
    • Commercial lines > Equipment Breakdown
    • Commercial lines > Businessowners Policy (BOP)
    • Commercial lines > Businessowners Policy (BOP) > Sections I, II and III.
    • Commercial lines > Businessowners Policy (BOP) > Hired auto and non-owned auto liability
    • Commercial lines > Businessowners Policy (BOP) > Protective safeguards
    • Commercial lines > Businessowners Policy (BOP) > Utility services (direct damage/time element)
    • Commercial Inland marine
    • Commercial Inland marine > Nationwide definition
    • Commercial Inland marine > Commercial Inland marine conditions form
    • Commercial Inland marine > Coverage forms
    • Commercial Inland marine > Coverage forms > Accounts Receivable
    • Commercial Inland marine > Coverage forms > Bailee’s customer
    • Commercial Inland marine > Coverage forms > Commercial articles
    • Commercial Inland marine > Coverage forms > Contractors equipment floater
    • Commercial Inland marine > Coverage forms > Electronic data processing
    • Commercial Inland marine > Coverage forms > Equipment dealers
    • Commercial Inland marine > Coverage forms > Installation floater
    • Commercial Inland marine > Coverage forms > Jewelers block
    • Commercial Inland marine > Coverage forms > Signs
    • Commercial Inland marine > Coverage forms > Valuable papers and records
    • Commercial Inland marine > Transportation coverages
    • Commercial Inland marine > Transportation coverages > Common carrier cargo liability
    • Commercial Inland marine > Transportation coverages > Motor truck cargo forms
    • Commercial Inland marine > Transportation coverages > Transit coverage forms
    • Ocean Marine Insurance
    • Ocean Marine Insurance > Hull
    • Ocean Marine Insurance > Cargo
    • Ocean Marine Insurance > Protection and Indemnity
    • Other coverages and options
    • Other coverages and options > Umbrella/Excess liability (personal/commercial)
    • Other coverages and options > Specialty liability insurance
    • Other coverages and options > Specialty liability insurance > Errors and Omissions
    • Other coverages and options > Specialty liability insurance > Professional
    • Other coverages and options > Specialty liability insurance > Directors and officers
    • Other coverages and options > Specialty liability insurance > Fiduciary
    • Other coverages and options > Specialty liability insurance > Liquor
    • Other coverages and options > Specialty liability insurance > Employment practices
    • Other coverages and options > Surplus Lines (definition and requirements)
    • Other coverages and options > Aviation (aircraft hull and liability)
    • Other coverages and options > National Flood Insurance Program
    • Other coverages and options > Boatowners
    • Other coverages and options > Differences in conditions (DIC)
    • Auto: Personal and Commercial
    • Auto: Personal and Commercial > Liability coverage
    • Auto: Personal and Commercial > Medical Payments
    • Auto: Personal and Commercial > Physical damage (collision, other than collision, comprehensive)
    • Auto: Personal and Commercial > Uninsured/Underinsured motorists
    • Auto: Personal and Commercial > Commercial auto coverage forms (Business auto, Garage, Business auto physical damage, Truckers, Motor Carrier)
    • Auto: Personal and Commercial > Covered autos/insureds
    • Auto: Personal and Commercial > Garagekeepers coverage
    • Auto: Personal and Commercial > South Carolina Motor Vehicle Financial Responsibility Act
    • Auto: Personal and Commercial > Required limits of liability
    • Auto: Personal and Commercial > Selected Endorsements
    • Auto: Personal and Commercial > Selected Endorsements > Amendment of policy provisions — South Carolina
    • Auto: Personal and Commercial > Selected Endorsements > Towing and labor costs
    • Auto: Personal and Commercial > Selected Endorsements > Extended non-owned coverage
    • Auto: Personal and Commercial > Selected Endorsements > Miscellaneous type vehicle
    • Auto: Personal and Commercial > Selected Endorsements > Joint ownership coverage
    • Auto: Personal and Commercial > Selected Endorsements > Lessor — additional insured and loss payee
    • Auto: Personal and Commercial > Selected Endorsements > Mobile equipment
    • Auto: Personal and Commercial > Selected Endorsements > Auto medical payments coverage
    • Auto: Personal and Commercial > Selected Endorsements > Hired autos specified as covered autos you own
    • Auto: Personal and Commercial > Selected Endorsements > Individual named insured
    • Auto: Personal and Commercial > Selected Endorsements > Drive other car coverage (DOC)
    • Farm Coverage
    • Farm Coverage > Farm Property Forms (A-G)
    • Farm Coverage > Farm Liability Forms (H-J)
    • Farm Coverage > Livestock coverage form
    • Farm Coverage > Mobile agriculture machinery and equipment coverage form
    • Surety and Fidelity bonds
    • Surety and Fidelity bonds > Parties to surety bonds
    • Surety and Fidelity bonds > Surety bond versus insurance
    • Surety and Fidelity bonds > Surety bond types
    • Surety and Fidelity bonds > Surety bond types > contract
    • Surety and Fidelity bonds > Surety bond types > license and permit
    • Surety and Fidelity bonds > Surety bond types > public official
    • Surety and Fidelity bonds > Surety bond types > judicial
    • Surety and Fidelity bonds > Surety bond types > fiduciary
    • Surety and Fidelity bonds > Nature of Fidelity bonds
    • Surety and Fidelity bonds > Fidelity bond types
    • Surety and Fidelity bonds > Fidelity bond types > employee theft
    • Surety and Fidelity bonds > Fidelity bond types > financial institution
    • Surety and Fidelity bonds > Fidelity bond types > public employee
    • Commercial Crime coverage
    • Commercial Crime coverage > Burglary, theft, and robbery defined
    • Commercial Crime coverage > Commercial/Governmental crime coverage forms (discovery/loss sustained)
    • Commercial Crime coverage > Employee theft coverage
    • Commercial Crime coverage > Forgery or alteration coverage
    • Commercial Crime coverage > Inside the premises — theft of money and securities coverage
    • Commercial Crime coverage > Inside the premises — robbery or safe burglary of other property coverage
    • Commercial Crime coverage > Outside the premises
    • Commercial Crime coverage > Computer fraud
    • Commercial Crime coverage > Funds transfer fraud
    • Commercial Crime coverage > Money orders and counterfeit money
    • Commercial Crime coverage > Extortion – commercial entities
    • Worker’s Compensation
    • Worker’s Compensation > Monopolistic versus competitive
    • Worker’s Compensation > Compulsory versus elective
    • Worker’s Compensation > South Carolina Workers’ Compensation Law
    • Worker’s Compensation > South Carolina Workers’ Compensation Law > Exclusive remedy
    • Worker’s Compensation > South Carolina Workers’ Compensation Law > Employment covered (required, voluntary) .. Ref: RL 42-1-130–150, 310, 360
    • Worker’s Compensation > South Carolina Workers’ Compensation Law > Covered injuries
    • Worker’s Compensation > South Carolina Workers’ Compensation Law > Occupational disease
    • Worker’s Compensation > South Carolina Workers’ Compensation Law > Benefits provided
    • Worker’s Compensation > South Carolina Workers’ Compensation Law > South Carolina Workers' Compensation Uninsured Employers' Fund
    • Worker’s Compensation > Workers compensation and employers liability insurance policy
    • Worker’s Compensation > Workers compensation and employers liability insurance policy > Part One - Workers compensation insurance
    • Worker’s Compensation > Workers compensation and employers liability insurance policy > Part Two - Employers liability insurance
    • Worker’s Compensation > Workers compensation and employers liability insurance policy > Part Three - Other states insurance
    • Worker’s Compensation > Workers compensation and employers liability insurance policy > Part Four - Your duties if injury occurs
    • Worker’s Compensation > Workers compensation and employers liability insurance policy > Part Five - Premium
    • Worker’s Compensation > Workers compensation and employers liability insurance policy > Part Six - Conditions
    • Worker’s Compensation > Workers compensation and employers liability insurance policy > Voluntary compensation endorsement
    • Worker’s Compensation > Sources of coverage
    • Worker’s Compensation > Sources of coverage > Self-insured employers/funds
    • Worker’s Compensation > Sources of coverage > Voluntary market
    • Worker’s Compensation > Sources of coverage > Captive companies
  • ADJUSTER DUTIES AND RESPONSIBILITIES
    • Claim investigation
    • Claim investigation > Inception/Expiration Date
    • Claim investigation > Occurrence Date
    • Claim investigation > Identification of Parties Involved
    • Claim investigation > Policy Form/Number
    • Claim investigation > Description of Proof of Loss
    • Claim investigation > Coverages and deductibles
    • Claim investigation > Physical evidence and witness statements
    • Claim investigation > Production of books and records
    • Loss/Damage Valuation
    • Loss/Damage Valuation > Direct Loss vs. Indirect Loss
    • Loss/Damage Valuation > Damages (Compensatory, punitive)
    • Loss/Damage Valuation > Value of intangible damages
    • Loss/Damage Valuation > Estimates
    • Loss/Damage Valuation > Depreciation
    • Loss/Damage Valuation > Reports
    • Claim adjustment procedures
    • Claim adjustment procedures > Coverage dispute resolution
    • Claim adjustment procedures > Payment release

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