Accidental health and sickness module 5

J receives notification of a violation of the Insurance Code from the Commissioner. The notice indicates that a hearing will be held in ______ days to answer the charges. a. 10 b. 15 c. 20 d. 30

a 10

An insurance producer must disclose any convictions of criminal offenses (except minor traffic violations) to the Commissioner how soon after the conviction? a. 10 days b. 20 days c. 30 days d. 45 Days

a. 10 days

J has been a licensed insurance producer in North Carolina for five (5) years. Tomorrow she moves into a new house across town. Relative to her change of address, J must notify the Commissioner of her address change, in writing, within ______ days of the move or face a _______ administrative fee from the NCDOI. a. 10, $50.00 b. 15, $50.00 c. 30, $50.00 d. 45, $50.00

a. 10, $50.00

A licensee may request a ____________ extension of his or her normal compliance period from the NCDOI a. 30 day b. 60 day c. 10 day d. 90 day

a. 30 day

Insurance Producers who signs any blank contract or policy of insurance is guilty of a: a. Class 3 Misdemeanor b. Class 1 Misdemeanor c. Class 2 Misdemeanor d. Class H Felony

a. Class 3 Misdemeanor

Under North Carolina law, embezzlement of money is a felony. If the amount embezzled is $100,000 or more it is a ___________. a. Class C felony b. Class D felony c. Class H felony d. Class M felony

a. Class C felony

The North Carolina Insurance Commissioner may suspend, revoke, or refuse to renew a license for all of the following reasons EXCEPT: a. Having been charged with larceny. b. Having intentionally lied about the terms of an insurance policy. c. Converting premiums paid for an insurance policy for personal use. d. Forging a name on an insurance application.

a. Having been charged with larceny.

_______ is the term used to describe a producer that willfully fails to tell the truth to an applicant or insured about his or her insurance policy. a. Twisting b. Falsification c. Concealment d. Misconception

a. Twisting

Insurers must formally appoint a producer to act for the company. An insurer must report to the Commissioner the name of appointed insurance producers within __________ days of the first application for insurance. a. 10 b. 15 c. 30 d. 60

b. 15

When an insurer requires a written proof of loss, the proof of loss form must be furnished by the insurer to the insured within ___________ after the receipt from the insured having given notice of a pending claim. a. 10 days b. 15 days c. 20 days d. 30 days

b. 15 days

North Carolina resident insurance producers that change their state of residence are required to return his or her North Carolina residents producer's license within _________ days to the North Carolina Commissioner. a. 10 b. 30 c. 60 d. 90

b. 30

A North Carolina licensee has how long to return his or her license to the Commissioner after moving residency to Florida? a. 15 days b. 30 days c. 45 days d. 60 days

b. 30 days

Disclosure Authorization Forms, under Article 39, are good for a period of _________ if the application for insurance pertains to life insurance or health insurance. a. 2 years b. 30 months c. 1 year d. 5 years

b. 30 months

An applicant for insurance may request the collected information obtained by the insurance company by making a written request. The insurance company has how many days to provide the information to the consumer? a. 10 days b. 30 days c. 45 days d. 60 days

b. 30days

The Commissioner is required by statute to inspect the records of each Domestic Insurer at least once every _____. a. 3 years b. 5 years c. 7 years d. 9 years

b. 5 years

All licensed insurance producers and licensed insurance brokers are required to take which of the following continuing education courses in every compliance period? a. A 3 hour Flood b. A 3 hour Ethics course c. A 4 hour Rules & Regulations course d. A 4 hour Ethics course

b. A 3 hour Ethics course

Which of the following is the designated term for an insurance company that does business in North Carolina but is domiciled in another country? a. Foreign b. Alien c. Domestic d. Reciprocal

b. Alien

All insurers must pay an annual appointment renewal fee for their producers by _________. a. December 31st b. April 1st (correct) c. April 15th d. January 1st

b. April 1st

Insurers using public records to obtain information must provide the applicant for insurance a copy of the Notice of Information Practices no later than: a. At the time of application b. At policy delivery c. At the time of accessing the information d. The notification is not required since the information is public

b. At policy delivery

If any person either acts or pretends to act as a licensee and does not have a license, which is required by law, that person is deemed guilty of a _____________. a. Class 3 Misdemeanor b. Class 1 Misdemeanor c. Class 2 Misdemeanor d. Class H Felony

b. Class 1 Misdemeanor

If the amount of property obtained by false pretense is under $100,000 in value the criminal penalty is a: a. Class 3 Misdemeanor b. Class H Felony c. Class C Felony d. Class 1 Misdemeanor

b. Class H Felony

Which of the following statements by an insurance producer made to an applicant for insurance would NOT violate the rebating laws? a. If you purchase this insurance policy, I will split the commissions with you. b. If you purchase this policy, the company may issue you an annual dividend. c. I am offering a week-end at my beach condo to people buying a policy from me. d. If you purchase the policy, I will pay the first premium for you.

b. If you purchase this policy, the company may issue you an annual dividend.

Which of the following statements about the Insurance Information and Privacy Act is FALSE? a. The applicant for insurance has 90 days to request information from the insurer on the adverse decision. b. Insurance companies may base a current adverse underwriting solely on a past adverse underwriting decision. c. An insurer has 21 business days to answer a request for information regarding an adverse underwriting decision made by an applicant for insurance. d. The Disclosure Authorization Form required by the Insurance Information and Privacy Act will remain valid from the date signed for 30 months.

b. Insurance companies may base a current adverse underwriting solely on a past adverse underwriting decision.

If an insurance producer unknowingly represents an unauthorized insurer doing business in North Carolina, he or she is: a. Not liable in any manner. It is a problem for the insurance company. b. Liable for claims against the policies and guilty of a Class 1 misdemeanor. c. Liable for claims against the policies and guilty of a Class H Felony. d. Required to pay only claims that arise within 2 years of the policy issue date.

b. Liable for claims against the policies and guilty of a Class 1 misdemeanor.

Which of the following would allow a licensee a one year extension on his or her CE requirements? a. Military service b. Military deployment c. Overseas residence d. Government foreign service

b. Military deployment

The Insurance Information and Privacy Protection Act (Article 39) allows "Pretext" interviews under which of the following circumstances? a. The insurance company wishes to do a credit history on the applicant. b. The insurance company is investigating criminal action with regards to an insurance claim. c. An insurance producer is looking for prospects. d. Pretext interviews are never legal.

b. The insurance company is investigating criminal action with regards to an insurance claim.

. Producer J tells an applicant for insurance coverage that the policy will cover a risk that it doesn't cover. Producer J has likely practiced what illegal activity forbidden by the North Carolina insurance code? a. Malpractice b. Twisting c. Misrepresentation d. Concealment

b. Twisting

Regarding an unfair trade practice the maximum fine for the violation of a cease and desist order from the Commissioner is ________. a. $10,000 b. $500 c. $5,000 d. $2,000

c. $5,000

The minimum age to obtain a producers license in North Carolina is: a. 16 b. 21 c. 18 d. 24

c. 18

Under North Carolina law, embezzlement of money is a felony. If the amount embezzled is less than $100,000 it is a ___________. a. Class C felony b. Class D felony c. Class H felony d. Class M felony

c. Class H felony

The ABC Insurance Agency receives premium payments for insurance policies. ABC needs to protect the money until it transfers the premiums to the insurance companies. Which of the following actions would be legal? a. Deposit the premium money into a personal account. b. Deposit the premium money into the agency manager's personal account. c. Create an account specified for the premiums only. d. As long as the premium money is transferred to the insurance company it may be comingled with other money.

c. Create an account specified for the premiums only.

All of the following are considered unfair trade practices EXCEPT: a. Misrepresentation b. Rebating c. Life insurance replacement d. Coercion

c. Life insurance replacement

All of the following would NOT be required to take a licensing course or state exam EXCEPT: a. Dental Services agent b. Credit Insurance agent c. Medicare Supplement/Long-term Care agent d. Prearrangement Insurance agent

c. Medicare Supplement/Long-term Care agent

The head of the North Carolina Department of Insurance is officially known as: a. The Superintendent b. The Director c. The Commissioner d. The Chief Executive

c. The Commissioner

If the Commissioner of Insurance cannot fulfill his or her term the which of the following will occur? a. The General Assembly will appoint a successor. b. The Chief Deputy Commissioner will assume the office. c. The Governor will appoint a successor. d. A special election will be held to elect a new Commissioner

c. The Governor will appoint a successor.

Licensees are required to complete 24-hours of continuing education credits by the end of his or her compliance period. Failure to do so may result in cancellation of the license. The licensee can reinstate his or her license by completing the required continuing education within ________ days of the end of the compliance period and paying a __________ reinstatement fee. a. 30 / $75 b. 60 / $50 c. 90 / $25 d. 120 / $75

d. 120 / $75

The Commissioner must examine each domestic insurer at least every _________. a. year b. 2 years c. 3 years d. 5 years

d. 5 years

The "Notice of Information Practices" under Article 39 must be provided to an applicant for insurance at what point? a. At the time of policy delivery b. At the time the insurance company accepts the risk c. At the time a consumer investigative agency contacts the applicant d. At the time of the application

d. At the time of the application

Any person who obtains information about an individual from an insurer, insurance producer or ISO under false pretenses will, upon conviction, be guilty of a: a. Class 3 Misdemeanor b. Class H Felony c. Class C Felony d. Class 1 Misdemeanor

d. Class 1 Misdemeanor

Which of the following statements about a temporary insurance license is true? a. The temporary license can be issued to anyone. b. The temporary license is good for 120 days. c. The temporary license is generally used by nonresident individuals. d. The temporary license immediately expires if the licensee fails the state exam.

d. The temporary license immediately expires if the licensee fails the state exam.