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The SC-ADJ exam has 105 questions and runs 2 hours.
These 10 free SC-ADJ questions are organized by exam domain, so you can see how each part of the South Carolina Property, Casualty, Surety and Marine Adjuster Exam blueprint is tested. Reveal the answer and explanation under each question.
After a hurricane, the South Carolina Director of Insurance declares an emergency. An insurer has used available South Carolina-licensed adjusters to the fullest extent and immediately appoints an otherwise unlicensed nonresident adjuster. Which action is required next?
Correct answer: B - File the appointment application within 48 hours after the appointment
Forty-five days before a commercial property policy expires, the insurer mails a notice of nonrenewal to the named insured's last known address and retains proof of mailing. The policy is subject to South Carolina's statutory notice rules. How should the notice be evaluated?
Correct answer: D - It is defective because nonrenewal requires at least 60 days' advance notice
In a partial-fire-loss adjustment, a commercial building has a replacement value of $600,000, an 80% coinsurance requirement, and a $360,000 limit. Replacement-cost coverage applies, the $120,000 repairs are completed, and the deductible is $2,000. The policy applies coinsurance before the deductible; the damaged property's actual cash value is $70,000. What amount is payable?
Correct answer: A - $88,000
The jury sets a South Carolina claimant's damages at $200,000 and assigns 35% of the fault to the claimant. Before insurance limits or other offsets, what recovery follows from South Carolina's modified comparative-negligence rule?
Correct answer: C - $130,000, reflecting a 35% reduction for the claimant's fault
Wind coverage and the damaged building components are undisputed. The parties disagree only about reasonable unit prices and the resulting amount of loss, and the policy contains an appraisal condition. Which mechanism most directly fits the dispute?
Correct answer: C - Appraisal under the policy's amount-of-loss condition
The named insured intentionally sets fire to a building, causing $250,000 in direct damage. Apart from the insured's act, fire is covered under the $300,000 policy. A mortgagee owed $180,000 had no knowledge of the act and satisfied every duty under the standard mortgage clause. Which statement best describes the mortgagee's position?
Correct answer: A - The mortgagee may recover up to $180,000 despite the insured's forfeiture
An unendorsed DP-3 policy covers a rental dwelling. A guest accidentally spills permanent dye, damaging an interior wall and the landlord's sofa. Assume no exclusion applies and that accidental dye staining is not a named peril under the form. What is the correct coverage result?
Correct answer: D - The wall is covered, but the sofa is not because Coverage C remains named-peril
Which homeowners form should a graduate student select when she leases a condominium unit, owns no part of the building, and wants coverage for furniture, clothing, additional living expense, and personal liability?
Correct answer: B - HO-4 Contents Broad Form
Following a covered fire that damages 40% of a commercial building, code enforcement requires demolition of the undamaged 60% and reconstruction of the entire building to modern standards. Which Ordinance or Law pairing addresses demolition of the undamaged portion and the increased cost of code-compliant construction?
Correct answer: A - Coverage B for demolition and Coverage C for increased construction cost
Production stops because of a covered equipment breakdown. During the covered period of restoration, the manufacturer would have earned $40,000 in net income and incurred $90,000 in continuing normal operating expenses, including covered payroll. Another $20,000 of expenses ceased, and $15,000 qualifies separately as Extra Expense. How much is Business Income before limits, coinsurance, or any deductible?
Correct answer: C - $130,000 excluding the separately covered Extra Expense
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