NC Casualty

After appointing an agent, how long does an insurer have to file with the Commissioner a notice of appointment? a)15 days b)30 days c)45 days d)60 days

15 days

If a PAP is terminated for nonpayment of the premium, the effective date may be how many days from the date the notice is mailed? a)15 days b)30 days c)7 days d)10 days

15 days

Coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period? a)90 days b)1 year c)3 years d)5 years

3 years

The Commissioner must examine every domestic insurer at least once every a)Year. b)2 years. c)3 years. d)5 years.

5 years.

When other insurance is written on the same basis as a commercial property policy, the obligation of the insurer is to cover a)All of the loss. b)The loss on an excess basis. c)The loss on a primary basis. d)A share of the loss.

A share of the loss.

In a personal auto policy, the medical payments coverage is similar to a)Accident insurance, because it has the same limits. b)Bodily injury coverage, because it pays the insured's doctor bills. c)Bodily injury coverage, because it provides legal protection if the insured causes injuries to others. d)Accident insurance, because it pays medical expenses regardless of fault.

Accident insurance, because it pays medical expenses regardless of fault.

Any agent, broker or limited representative who acts for a person other than himself negotiating a contract of insurance, for the purpose of receiving the premium, is deemed to be a)A managing partner of the insured. b)In violation of the free credit act. c)An agent of the company. d)A designated representative of the agent.

An agent of the company.

If the ocean marine contract pays the ACV of the property just prior to the loss, it is a)A demurrage contract. b)A valued contract c)An indemnity contract. d)A replacement cost contract.

An indemnity contract.

Under the examinations of books and records condition, the insurance company has the right to examine and audit the insured's books and records related to the policy a)During the policy period and for up to 5 years after the termination of the policy. b)Only after the policy period. c)During the policy period and for up to 3 years after the termination of the policy. d)Only during the policy period.

During the policy period and for up to 3 years after the termination of the policy.

Events or conditions that increase the chances of an insured loss occurring are referred to as a)Hazards. b)Exposures. c)Risks. d)Perils.

Hazards

All of the following are conditions commonly found in the insurance policy, EXCEPT a)Insuring agreement b)Cancellation and non-renewal c)Subrogation d)Appraisal

Insuring agreement

Which of the following is TRUE regarding business liability and medical payments coverage?a)Nonowned watercraft less than 60 feet long are covered. b)Mobile equipment may be covered, as long as it is attached to an insured auto. c)Loss of electronic data is excluded under a business liability policy. d)Liability arising from alcohol intoxication is only covered for alcohol distributors.

Loss of electronic data is excluded under a business liability policy.

A private investigator has been hired by an insurance company to obtain a character report on an insurance applicant. The investigator contacts the applicant and requests an interview stating that he is conducting a research for a publication. The applicant permits the interview and unknowingly gives information that will be used in the underwriting decision. Which of the following does this scenario describe? a)Insurance information investigation b)Misrepresentation c)Pretext interview d)Investigative consumer report

Pretext interview

Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is a)Shared on a pro rata basis. b)Provided by the insured's policy on a primary basis. c)Provided by the insured's policy on an excess basis. d)Not covered.

Provided by the insured's policy on an excess basis.

Surety bonds are written for a definite limit called a)The bond penalty. b)Indemnity limit. c)The limit of liability. d)Loss costs.

The bond penalty.

When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays A percentage of the loss as described on the declarations. b)The excess over the self-insured retention. c)The amount specified in the policy under the additional coverage provisions. d)The amount in excess of the policy's limits of liability.

The excess over the self-insured retention.

Which of the following circumstances would be EXCLUDED under medical payments coverage of a personal auto policy? a)The insured is injured while driving his motorcycle on his resident premises. b)The insured's friend is injured in an accident while riding as a passenger in the insured's car. c)The insured's mother is injured while exiting from the insured vehicle. d)The insured is struck by another vehicle while crossing the street.

The insured is injured while driving his motorcycle on his resident premises.

Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy? a)The insured would have to pay the self-insured retention limit. b)The insured would be responsible for the amount required as underlying limits in the event of a claim. c)It would have no effect on the umbrella policy. d)The policy will be cancelled.

The insured would be responsible for the amount required as underlying limits in the event of a claim.

Under which of the following circumstances would a pretext interview be permissible? a)A third party is conducting the interview. b)The insurer needs to obtain confidential information. c)The insurer suspects criminal activity and fraud. d)The applicant for insurance fails to provide pertinent information to underwriters.

The insurer suspects criminal activity and fraud.

All of the following are true regarding physical damage coverage EXCEPT a)The limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle. b)Losses to nonowned autos will be covered the same as the broadest coverage available for any covered auto, except nonowned trailers are limited to $1,500. c)The policy will pay up to $20 per day up to a maximum of $600 for rental transportation. d)The insurer will pay for direct and accidental loss to a covered auto minus any applicable deductible.

The limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle.

All of the following statements concerning liability coverage are true EXCEPT a)Liability policies defend the insured against claims, real or alleged. b)The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met. c)The insurer cannot refuse to pay a claim even if the insured is bankrupt. d)Liability policies normally include supplementary payment provisions.

The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met.

Who has the rights to veto the repair facility for a vessel? a)The owner b)The assured c)The underwriter d)The captain

The underwriter

All of the following are true regarding notice of cancellation of an auto policy EXCEPT a)Notice of cancellation for a reason other than nonpayment of premium must be sent at least 60 days in advance. b)The written notice of cancellation does not have to include a statement advising the insured of the penalties for operating a vehicle without insurance. c)The insurer must provide written notice to the insured by first class mail at the insured's last known address. d)Notice of cancellation due to nonpayment of premium must be sent at least 15 days in advance of the effective date.

The written notice of cancellation does not have to include a statement advising the insured of the penalties for operating a vehicle without insurance.

The other insurances clause of an ocean marine policy allows coverage for which reasons? a)To obtain coverage for war, strikes, and related risks not covered by the policy b)To replace an existing policy c)To add endorsements d)To expand existing coverages such as earthquake, fire, and hail

To obtain coverage for war, strikes, and related risks not covered by the policy

An Insured with limits lower than required by law, a teenager who has not purchased coverage for his car, one insured by a company who has become insolvent, and a hit and run when driver can't be found are all considered to be a)Insureds. b)In compliance with the automobile financial law. c)Uninsured motorists. d)Underinsured motorists.

Uninsured motorists.

Which of the following is NOT true if ownership changes, voluntary or otherwise? a)If involuntary temporary transfer occurs without prior written agreement by the assured, automatic termination shall occur 15 days after transfer. b)If the vessel already has sailed from her loading port, automatic termination may be deferred until 15 days after arrival at final port of discharge. c)The ocean marine policy shall terminate automatically at the time of ownership change. d)If the vessel already has sailed from her loading port, automatic termination may be deferred until arrival at the final port of discharge.

b)If the vessel already has sailed from her loading port, automatic termination may be deferred until 15 days after arrival at final port of discharge.

An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the second passenger. How much will the policy pay under medical payments coverage? a)$5,000 minus the policy deductible b)$14,000 c)$15,000 d)$5,000 maximum for the accident

$14,000

Transportation expenses are covered under a Personal Auto Policy for a)$25 per day, for a maximum of $500. b)$50 per day, for a maximum of $500. c)$50 per day, for a maximum of $750. d)$15 per day, for a maximum of $450.

$15 per day, for a maximum of $450.