NC Casualty

if an individual obtains an insurance license and the commissioner determines the the license is primarily used by that individual to write controlled business, the commissioner may revoke the license. The test determining controlled business is when commissions in a 12 month period exceed.

50% of the aggregate of all commissions.

When a licensee is accused of any act, ommission, or misconduct that would subject the licensee to a license suspension or revocation, the licenses , with the approval of the commissioner may surrender the license for a period

6 months

If you are called upon to handle the estate of a deceased, the court will require you to post which bond?

Administrator

A liability policy that covers all claims arising out of incidents occurring during the policy period regardless of whether or not the policy still in effect at the time of the claim is known as?

An occurrence policy

The garage coverage form is used to insure?

Auto business, such as auto dealers, service stations, and auto repair shops.

The bankruptcy provision found in the personal auto policy states that:

Bankruptcy of the insured will not relieve the insurer of its policy obligations.

Employee theft coverage may be written as

Blanket coverage, name schedule coverage, position schedule coverage.

What is in a commercial Package policy?

Common policy Conditions, common policy declarations , two or more coverage parts

Stacy is riding as a passenger in Connie's car and is injured. Which of the following statements would apply if both Stacey and Connie had medical payments coverage under a personal auto policy

Connie's policy would pay

Zachary is the proud owner of a 1998 sports car to which he has added a high performance engine costing several thousand dollars. Zachary has added an endorsement to his auto policy which will provide coverage against loss or damage to the engine. his type of endorsement is known as ?

Damage to your auto (customized equipment)

Other then collision would cover financial losses due to

Damage to your car caused by wind or hail

Who assumes control over an insurance company's funds and management if it becomes insolvent?

Department of Insurance

an insurance institution or agent shall clearly specify those questions____________from an individual in connection with an insurance transaction

Designed to obtain information soley for marketing or research purposes.

What term means direct, physical damage to buildings or personal property?

Direct Loss

A business policy may be written on which of the following coverage forms?

Either Standard or special coverage form.

Bonds for administrators and trustees are examples of?

Fiduciary Bonds

An insurer devised an intimidation strategy in order to corner a large portion of the insurance market. which of the following best describes this practice

Illegal

Which of the following is the most precise synonym for an "authorized" insurer?

Legal

which of the following personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss

Liability coverage

Subrogation rights under a personal auto policy apply to all coverage

Liability, physical damage, uninsured motorist.

Mary has a contract with Joe's Janitorial Service. Joe uses poor equipment. One day his vacuum shorts out and starts a fire damaging Mary's building. Mary feels sorry for Joe and says "don't worry, I'm fully covered. My insurance will take care of all the damages." During the investigation Mary's insurer finds our Mary told Joe that and refuses to pay the claim. Why?

Mary took away their Subrogative rights

fire is an example of

Peril

Medical payments coverage applies per person, per accident under what policy

Personal Auto policy

The commissioner is empowered to make and promulgate reasonable rules and regulations governing the transactions of all the following except

Policyholders

A faulty packaging of a cereal caused spoilage that resulted in someone getting sick is an example of what?

Product Liability claim

Under the claims -made CGL the supplemental extended reporting period.

Provides an unlimited extenstion for losses that occurred during the policy period, but the insured must pay an addtional premium.

The risk of loss may be classified as

Pure Risk and speculative Risk

The policies and practices of the insurance institution or agent with respect to disclosing nonpublic personal information to nonaffiliated third parties, other then agents of the insurance institution or agent, consistent with public law, includes which of the following

The categories of persons to whom the information is or may be disclosed, other then the persons to whom the information may be provided.

When an umbrella policy is boarder then underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays?

The excess over the Self-insured retention

The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following exept

The insured is injured while exiting a friend's mobile home.

The garage coverage form provides liability protection for?

The insured's income losses due to personal injury and inability to work.

A liability policy that provides increased limits and expanded coverage over underlying casualty coverages is called?

Umbrella liability policy

An insured with limits lower then required by law, a teenager who has not purchased coverage for his car, one insured by a company who has become insolvent, and hit and run when driver can't be found are all considered to be.

Uninsured motorist.

A provision found in most claims-made liability policy forms that provide a specified period of time following the policy expiration, during which claims arising out of occurrences during the policy period may be made against the policy at no extra cost is called?

basic extended reporting period

A pickup or van, under 10,000 pounds that is used to deliver persons or property for a fee.

does not fit the criteria for eligibility requirements for coverage under a personal auto policy.

All of the following are true regarding deposit premium

it is 50% of the actual premium

An employer/insured is not responsible for?

making voluntary payment for treatment of the worker that was injured.

A "ceded@ motor vehicle insurance can be cancelled for what reason

non-payment of premium, Agency contract with the company is terminated or the named insured becomes a non resident