PROPERTY INSURANCE- (ICAP-Property-IV)

A N.C. agent's license can be issued temporarily, not to exceed? A)100 days. B)180 days. C)One year. D)30 days.

B)180 days.

How many hours of CE does a Life agent have to take? A)24. B)18. C)12. D)None, the hours are met when the Accident and Health hours are met.

A)24.

When an insured incurs a loss, the named insured must submit a sworn proof of loss within what time frame listed below? A)60 days. B)90 days. C)120 days. D)180 days.

A)60 days.

A temporary contract of insurance is known as a(n)? A)Binder. B)Rider. C)Warranty. D)Endorsement.

A)Binder.

When an agent signs a blank application for a client s/he is guilty of what? A)Misdemeanor. B)Felony. C)Rebating. D)Breaking the Privacy Protection Act.

A)Misdemeanor.

All statements or descriptions in an application for insurance are considered? A)Representations. B)Relevant. C)Material. D)Warranties.

A)Representations.

What is the purpose of the Insurance Information and Privacy Protection Act? A)To establish standards for the collection, use, and disclosure of information gathered in connection with insurance transactions by insurance institutions. B)To prevent insurance institutions from collecting information on persons applying for insurance. C)To prevent insurance applicants and policyholders from learning the reasons for adverse underwriting decisions. D)To prevent individuals from accessing any information that is collected about them in connection with insurance transactions.

A)To establish standards for the collection, use, and disclosure of information gathered in connection with insurance transactions by insurance institutions.

If an agent's appointment or license is cancelled by an insurer, the insurer must give written notice to the Commissioner within: A)10 days. B)30 days. C)60 days. D)90 days.

B)30 days.

Jane borrows $2,000 to pay her mortgage from the bank account where she keeps her client's premium payments. In essence she's stealing, what's she legally guilty of? A)A misdemeanor. B)A felony. C)Borrowing money. D)Fraud.

B)A felony.

Which of the following practices are considered unfairly discriminatory? A)Refusal to issue property coverage due to the occupancy (use) of the structure. B)Adding a surcharge on automobile liability insurance due to the age of the operator. C)Placing coverage in a residual market due to information supplied by a consumer reporting service. D)Reducing rates for a specific class of insureds without reducing rates for all insureds.

B)Adding a surcharge on automobile liability insurance due to the age of the operator.

All of the following can write business for the beach plan EXCEPT? A)A North Carolina licensed broker/agent. B)An adjuster. C)An agent licensed in North Carolina but does not have an appointment with an insurer. D)A non-resident agent.

B)An adjuster.

Which of the following is NOT an insurance company adverse underwriting decision under the "Insurance Information and Privacy Protection Act"? A)Canceling a policy. B)Charging a higher rate because of changing loss exposure at the insured's property. C)Declining an application for insurance coverage. D)Placing coverage in a residual market mechanism.

B)Charging a higher rate because of changing loss exposure at the insured's property.

What law gives consumers recourse if they are denied insurance on the basis of information contained in their credit reports? A)Assigned Risk Law. B)Fair Credit Reporting Act. C)Contributory Negligence Act. D)Absolute Liability Law.

B)Fair Credit Reporting Act.

When does the Commissioner's term of office begin? A)As soon as elected. B)January 1st following the year of election. C)April 15th following the year of election. D)As soon as possible.

B)January 1st following the year of election.

Obtaining information through a personal interview where the agent does not accurately identify themselves is known as a(n)? A)Consumer report. B)Pretext interview. C)Survey scam. D)Investigative consumer report.

B)Pretext interview.

Tim gave Bob a $75 gift certificate for buying insurance from him this is called? A)Twisting. B)Rebating. C)Defamation. D)Good Business.

B)Rebating.

Which of the following is responsible for licensing insurance agents? A)NAIC. B)State Insurance Departments. C)Better Business Bureau. D)FAIR Bureau.

B)State Insurance Departments.

Every broker who negotiates an application for insurance is considered to be representing? A)The beneficiary. B)The insured. C)The policyowner. D)The insurer.

B)The insured.

All of the following are FALSE about the Postassessment Insurance Guarantee Association EXCEPT? A)They assist policyowners to assess the value of their property after an accident. B)They help avoid financial loss to claimants because of the insolvency of an insurer. C)They assess the validity of an insurer after a negative claim has been filed. D)They guarantee to the Department of Insurance a true assessment about the value of claims after they have been made.

B)They help avoid financial loss to claimants because of the insolvency of an insurer.

The Notice of Information Practices indicates that the applicant has all of the following rights EXCEPT? A)To know the reason for any adverse underwriting decision. B)To have access to the underwriting standards of the company. C)To dispute any information felt to be incorrect. D)To know from whom pertinent information was gathered.

B)To have access to the underwriting standards of the company.

To become a Broker in North Carolina requires a bond of? A)$25,000. B)$20,000. C)$15,000. D)$10,000.

C)$15,000.

All of the following are true about the Notice of Information Practices EXCEPT? A)Pre-notification is required for all investigative reports. B)Post-notification is required whenever insurance is adversely affected by a consumer credit report. C)An agent who obtains information can have incorrect information removed. D)Information can never be removed.

C)An agent who obtains information can have incorrect information removed.

Making maliciously, derogatory statements about an insurer with the intent of causing injury is an illegal practice known as? A)Coercion. B)Intimidation. C)Defamation. D)Boycott.

C)Defamation.

Which statement below best describes the practice of twisting? A)Is perfectly legal in this state. B)Involves writing insurance that is unacceptable by the company an agent is associated with. C)Involves an agent coercing an insured to purchase insurance from them and that decision is to the detriment of the insured. D)Occurs when an agent gives directly or indirectly to an insurance buyer any rebate of premiums as an inducement for the purchase of insurance.

C)Involves an agent coercing an insured to purchase insurance from them and that decision is to the detriment of the insured.

The Commissioner of Insurance has the power to? A)Set Fire and Liability rates charged in North Carolina. B)Revoke an agent's license(s) before a hearing. C)Issue subpoenas on behalf of individuals in order to conduct a hearing. D)Issue verbal Cease and Desist orders.

C)Issue subpoenas on behalf of individuals in order to conduct a hearing. The North Carolina Rate Bureau sets the rates and the Commissioner of Insurance approves or disapproves the rates. The Commissioner can suspend before a hearing but must wait until after a hearing to revoke a license. Cease and Desist orders must be in writing NOT verbally communicated. The Commissioner may issue subpoenas.

A potential agent must have satisfied all of the following requirements prior to effectuating insurance coverage in this state EXCEPT: A)Received an appointment from an admitted insurer. B)Completed an educational course from an approved school. C)Posted a $50,000 surety bond. D)Received an insurance license from the Department of Insurance.

C)Posted a $50,000 surety bond.

Company A has 5,000 policyholders. Company B has 25,000 policyholders. Company B is able to make more accurate predictions concerning the number of claims it will have to pay than Company A because of which principle idea listed below? A)Principle of Information. B)Quantity accumulation principle. C)Principle of law of large numbers . D)Principle of statistical analysis of insurance.

C)Principle of law of large numbers .

All of the following is true about the North Carolina Insurance Guaranty Association EXCEPT? A)Property and Casualty insurance companies are protected by the Association. B)The Association allocates claims and expenses and assesses members for their share . C)The Association aids in the detection and prevention of insurer insolvencies. D)All insurers writing coverages which may be covered by the Association are required to be members.

C)The Association aids in the detection and prevention of insurer insolvencies.

The Fair Access to Insurance Requirements Article applies to all geographic areas of the State EXCEPT? A)Areas of the State with average property values over a specified limit. B)Areas with urban renewal efforts underway. C)The beach area. D)Areas of the State with average property values under a specified limit.

C)The beach area.

All of the following statements about the North Carolina FAIR plan are true EXCEPT? A)Most insurers writing basic property insurance in this state are required to be members. B)Member insurers share losses, expenses and income resulting from FAIR plan business. C)The plan applies to insurable property in all geographic areas of the state. D)The plan is administered by an underwriting association which follows a formal plan of operations.

C)The plan applies to insurable property in all geographic areas of the state.

All of the following statements concerning property, casualty and personal lines insurance agents are true EXCEPT? A)They act on behalf of the insurer. B)They are authorized by contract to solicit insurance policies. C)They act on behalf of the insured. D)Their actions and knowledge are binding on the insurance company.

C)They act on behalf of the insured.

All of the following are misrepresentation and concealment and prevent recovery under an insurance contract if? A)Fraud is involved. B)They are material to the acceptance of the risk. C)They are not material to the acceptance of the risk. D)The insurer would have declined the application had the facts been known.

C)They are not material to the acceptance of the risk.

To qualify for a license as an insurance agent, an applicant must do all of the following EXCEPT? A)Make application on the form prescribed by the Commissioner. B)Be deemed by the Commissioner to be competent, trustworthy and financially responsible. C)Willfully violate the insurance laws of this or any other state. D)Be at least 18 years of age.

C)Willfully violate the insurance laws of this or any other state.

The NCIUA covers which of the following? A)Manufacturing risks. B)Farm risks. C)Motor vehicles risks. D)Beach risks.

D)Beach risks.

All of the following are true about a binder EXCEPT? A)Temporary insurance. B)Proof of coverage. C)It is no longer needed once the policy has been issued. D)Coverage is guaranteed.

D)Coverage is guaranteed.

The North Carolina Insurance Underwriting Association provides which of the following? A)Protection for North Carolina residents against insolvencies of property insurers. B)Basic property insurance in urban areas C)Motor vehicle liability insurance for hard-to-insure individuals. D)Essential property insurance for beach area property.

D)Essential property insurance for beach area property.

All of the following are true statements about a Broker EXCEPT? A)Must have agent's license. B)Must have a bond payable to the State of N.C. C)Is considered to represent the insured if there is a dispute. D)Is considered to represent the insurance company if there is a dispute.

D)Is considered to represent the insurance company if there is a dispute.

The Rate Bureau promulgates rates for all of the following EXCEPT? A)Real property. B)Worker's Compensation. C)Auto. D)N.C.J.U.A.

D)N.C.J.U.A.

Joe's Financial Institutions let Janice borrow $25, 000 to purchase a new auto. Joe required her to get the auto insurance through him before he gave her the loan. What statute allows him to do that? A)Unfair Trade Practices. B)Consumer Report. C)Adverse Underwriting Decisions. D)None, he cannot require her to purchase insurance to obtain the loan.

D)None, he cannot require her to purchase insurance to obtain the loan.