ExamFX NC Chapter North Carolina Statues and Regulations Pertinent to Personal Lines Quiz

Insurance companies are required to provide proof of loss forms to the claimant within how many days after receipt of notice of loss? a. 15 b 30 c. 31 c. 45

a. 15

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. 10 days b. 15 days c. 30 days d. 7 days

b. 15 days

All of the following would be considered rebating Except a. An agent offers tickets to a baseball game as an inducement to buy insurance b. An agent misrepresents policy benefits to convince a policy owner to replace policies c. An agent offers the use of his lake house to a client as an inducement to buy an insurance policy from him d. An agent offers to share his commission with a policyholder.

b. An agent misrepresents policy benefits to convince a policy owner to replace policies

If an insurer accepts premium payments by credit card, who is responsible for paying the fees charged by a credit card company? a. Credit card company b. Insurer accepting payment c. Policyowners, as part of their premium d. Insured making payment

b. Insurer accepting payment

Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another? a. rebating b. Twisting c. Switching d. False advertising

b. Twisting

By what date must agents complete the required continuing education? a. By March 1st every even-numbered year b. By the first day of the licensee's birth month every year c. By the last day of the licensee's birth month every 2 years d. By December 31st each year

c. By the last day of the licensee's birth month every 2 years

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

c. 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 North Carolina Insurance Underwriting Association has all of the following powers EXCEPT a. To assume reinsurance from its members b. To cede reinsurance to it members and to purchase reinsurance in behalf of its members c. To engage in writing policies of insurance for town and county mutual insurance associations d. To issue policies of insurance

c. To engage in writing policies of insurance for town and county mutual insurance associations

What is the minimum limits for uninsured motorist auto coverage in this state? a. 15/25/30 b. 20/50/25 c. 10/1010 d. 30/60/25

d. 30/60/25

If a licensee is convicted of a criminal violation, ,the licensee's insurance license is a. Suspended after a hearing b. Automatically suspended c. Automatically revoked d. Not affected

d. Automatically suspended

All of the following could be considered rebated if offered to an insured in the sale of insurance EXCEPT a. An offer of employment b. Stocks, securities, or bonds c. An offer to share in commissions generated by the sale d. Dividends from a mutual insurer

d. Dividends from a mutual insurer

The Commissioner is empowered to adopt rules and regulations governing the transactions by all of the following individuals and entities EXCEPT a. Agents b. Brokers c. Insurers d. Policyholders

d. Policyholders

If the applicant has not fully met the requirements for licensing, the Commissioner will a. Issue a temporary license for 90 days to allow time to complete prelicensing education b. License that candidate as a "solicitor" for the insurer until all requirements are met c. Prohibit the candidate from future licensing d. Refuse to issue the license and notify the applicant in writing

d. Refuse to issue the license and notify the applicant in writing

Whenever an insurer knows what a person has violated wither the fraudulent claims or embezzlement provisions, it is the insurer's duty to notify which of the following? a. The department of justices b. The policyowner c. The attorney general d. The insurance commissioner

d. The insurance commissioner