Law

Embezzlement is a Class C felony if the amount of the money embezzled is ______ or more

$100,000

The MAXIMUM coverage limits for Medical Payments in the NC Reinsurance Facility is:

$2,000

What are the minimum limits of liability required by NC Motor Vehicle Law?

$30,000/$60,000/$25,000

The North Carolina Post Assessment INsurance Guaranty Association (Guaranty Fund) will not pay covered claims for less than ________ or more than __________.

$50/$300,000

The minimum age for an individual to be licensed as an agent is:

18

A person who holds one or more licenses must obtain ____ ICEC's every 24 months?

24

A person licensed as an insurance producer in another state who moves to North Carolina and who wants to be licensed as a resident must apply within ____ days after establishing legal residence:

30

The Commissioner of Insurance serves a term of:

4 years

The Rate Bureau files for an increase in automobile rates. If the Commissioner does not disapprove the filing, the new rates will take effect after _______ days.

50

Which of the following is not considered an unfair trade practice?

A. A willful, material misrepresentation of an insurance contract whereby an insured is deceived and cancels or terminates his/her insurance in force to such insured's detriment B. Rebate of premiums on credit life and credit accident and health insurance, C. CANCELING A CONTRACT MID-TERM AND REPLACING WITH A POLICY PROVIDING GREATER LIMITS AND BROADER COVERAGE D. Refusing to pay a claim without making a thorough investigation based on available information

Which of the following actions by an insurance company would not be considered an "adverse underwriting decision"?

A. Cancellation of a policy B. CHARGING A HIGHER RATE BECAUSE OF INFORMATION FURNISHED BY THE APPLICANT C. Placing the coverage with a residual market D. Declining to issue a policy

A license may be denied, suspended, revoked, or non-renewed for any of the following reasons EXCEPT:

A. MAKING A FALSE STATEMENT ON THE LICENSE APPLICATION WHICH IS NOT MATERIAL B. violation of the insurance laws of another state C. willfully over-insuring property D. conviction of a fleony

All of the following are true regarding the North Carolina Insurance Underwriting Association (Beach Plan/Coastal Property Insurance Pool) EXCEPT:

A. any person having an insurable interest in the insurable property may apply B. AN AGENT MUST BE APPOINTED BY THE NCIUA TO WRITE POLICIES THROUGH THEM C. a broker or agent authorized by the applicant may apply on the applicant's behalf D. any agent who is licensed as an agent of a member company may write insurance through the NCIUA

All of the following must take a written examination when applying for a license, EXCEPT:

A. surplus line brokers B. adjuster C.someone who works for a company and must be licensed D. SOMEONE WITH A CLU OR CPCU DESIGNATION

Which of the following coverages is NOT available through the North Carolina Motor Vehicle Reinsurance Facility?

Physical Damage

What is the purpose of the Insurance Information and Privacy Protection Act?

To establish standards for the collection, use, and disclosure of information gathered in connection with insurance transactions by insurance institutions, agents, or insurance-support organizations

When is a pretext interview permissible under the Insurance Information and Privacy Protection Act?

When there is a reasonable basis for suspecting criminal activity

Any person committing perjury with respect to the reporting of a claim will be punished as:

a felony

An insurance company incorporated or organized under laws of the U.S. or any jurisdiction within the U.S. other than this state is called:

a foreign company

Agent Jones sold a homeowners policy and told the client that the policy covered flood. Agent Jones has committed:

an unfair trade practice

IN order to obtain a broker's license in North Carolina a person must:

be a licensed North Carolina agent and post a bond

A motor vehicle risk which is assigned to N.C. Reinsurance Facility is said to be:

ceded

The Commissioner may do all of the following EXCEPT:

change state insurance laws at will for the good of the general public

Agent Jones is on the board of a local bank. He told Joe Smith if the did not buy insurance from him, he would see that Joe did not get the loan he needed to build his building. Agent Jones is guilty of:

coercion

Agnet Jones has always felt that Japanese were unsafe drivers. When Mr. Tojo purchased auto insurance from Agent Jones, he intentionally overcharged Mr. Tojo by misclassifying him. Agent Jones is guilty of:

discrimination

An insurance company domiciled in North Carolina is:

domestic company

The Insurance Commissioner is put in his/her position by:

election by the people

To keep monies that are actually the insurance company's monies means the agent is guilty of :

embezzlement

The North Carolina INsurance Underwriting Association provides:

essential property insurance for beach area property

An agent who converts money received in an insurance transaction to his or her own use is guilty of:

false pretenses

Which of the following does not require approval as to its form by the Commissioner of INsurance

internal office forms of the insurer

Jim Smith, Independent Insurance agent, has been advertising in his local paper that his Homeowners policies "covered everything". He was called on the carpet by the Commissioner for unfair trade practices. The Commissioner would pro ably:

issue a cease & desist order

The Post Assessment Insurance Guaranty Association (Guaranty Fund) was formed to:

provide a fund from which claims are paid if an admitted insurance company becomes insolvent

Agent Jones sold Joe Smith a homeowners policy. In order to induce joe to buy, Agent Jones gives Joe half his commission. Agent Jones is guilty of:

rebating

A license issued to a relative or personal representative of a deceased or disabled agent is known as:

temporary license

In the event of an admitted company insolvency in N.C., the Post Assessment Insurance Guaranty Association (Guaranty Fund) was developed to provide assistance for potential unprotected insureds until coverage can be placed. If a claim is filed, the maximum amount that will be paid is:

the amount of loss up to a $300,000

The purpose of the North Carolina Beach Plan is:

to provide an adequate market for essential property insurance in the beach areas of N.C.

Agent Jones convinces Joe Smith to cancel his homeowner's policy and buy Agent Jones's policy. In making this change Joe suffers a financial loss. Agent Jones is guilty of:

twisting

An agent, while offering a new policy, misrepresents an existing policy owned by the prospect. The prospect is induced to lapse the existing policy to his detriment. The agent is thereby guilty of:

twisting

A licensee holding one license may carry over a maximum of _____ CE hours from one biennium period to the next.

unlimited

All of the areas listed below are areas regulated by the state EXCEPT:

A. licensing of insurance companies B. examination of the companies C.checking on the soundness of loss reserves and unearned premium D. APPROVING DIVIDENDS PAID TO POLICYHOLDERS OR STOCKHOLDERS

When the N.C. Rate Bureau was created to administer policy forms and rates for all the following lines of insurance EXCEPT:

A. private passenger auto liability and physical damage insurance B. Workers Compensation insurance C. residential property coverages including Dwelling Policies and Homeowners D. PERSONAL INLAND MARINE COVERAGE

Which of the following would be considered ethical conduct by an agent of an insurer:

A. purchasing salvage from a claimant B. accepting a gratuity from a provider of services in exchange for recommending that provider to claimants C. Discouraging a claimant from seeking legal advice D. NONE OF THE ABOVE

The North Carolina Rate INsurance Bureau establishes rates for all of the following lines of insurance EXCEPT:

A. workers compensation B. Dwelling fire C. TITLE D. physical damage to private passenger motor vehicles

The term "twisting" refers to:

willful, material misrepresentation of an insurance contract whereby an insured is deceived into canceling an in-force policy to the insured's detriment