LifeCoach

An individual's personal information includes all the following, EXCEPT:

"Personal information" includes an individual's name and address and medical record information, but does not include privileged information. The correct answer is: Privileged information

Insurance advertisements must not be: Select one: a. Incomplete, deceptive, or hard to follow b. Untrue, comparative, or incomplete c. Untrue, deceptive, or misleading d. Uninteresting, deceptive, or misleading

A person may not make, publish or circulate an advertisement, announcement, or statement containing a statement with respect to the business of insurance, which is untrue, deceptive, or misleading. The correct answer is: Untrue, deceptive, or misleading

Insurers must keep records of all complaints for at least: Select one: a. 2 years b. 3 years c. 4 years d. 5 years

Each insurer or its agents will maintain an itemization register or log of every written complaint including the final disposition of the complaint. These records will be retained for at least 5 years after the final disposition of the complaint. The correct answer is: 5 years

Every society authorized to do business in North Carolina will be subject to: Select one: a. Unfair methods of competition b. Deceptive acts laws c. Deceptive practices laws d. All of the above

Every society authorized to do business in North Carolina will be subject to the unfair methods of competition and deceptive acts and practices laws in which insurance producers are subject. The correct answer is: All of the above

Which of the following is correct? Select one: a. A lender may always require the purchase of insurance as a condition to a loan. b. A lender may require the purchase of insurance as a condition to a loan in rare circumstances. c. A lender may sometimes require the purchase of insurance as a condition to a loan. d. A lender may never require the purchase of insurance as a condition to a loan.

No lender will require the purchase of insurance from such lender or subsidiary or affiliate of such lender as a condition to the making, renewing or refinancing of any loan or to the establishing of any of the terms or conditions of such loan. The correct answer is: A lender may never require the purchase of insurance as a condition to a loan.

What is the only instance when blank insurance policies can be countersigned? Select one: a. When the agent will be out of town for an extended amount of time b. When the agent is going on duty with the U.S. armed forces c. When the policies are for less than $10,000 d. When they are sold through coin operated machines

Transportation ticket policies of accident insurance and baggage insurance policies may be countersigned in blank for issuance only through coin operated machines. The correct answer is: When they are sold through coin operated machines

In which case can an unlicensed individual receive commission, consideration or compensation? Select one: a. An unlicensed agent may accept commissions from an indirect sale of insurance. b. A licensed insurance producer may pay commissions to a partnership of which the person is a member or agent. c. A licensed insurer may pay commissions to an unlicensed individual who only solicited insurance. d. All of the above

Unlicensed employees cannot receive commissions for either the indirect sale of insurance nor solicitation of insurance. The correct answer is: A licensed insurance producer may pay commissions to a partnership of which the person is a member or agent.

Who created the "Uniform Business Entity Application"? Select one: a. Insurers b. Commissioner c. NAIC d. FINRA

"Uniform Business Entity Application" means the current version of the NAIC Uniform Business Entity Application for resident and nonresident business entities. The correct answer is: NAIC

In North Carolina, if a licensee is convicted of a crime, how soon must the Commissioner be notified? Select one: a. Immediately b. Within 10 days of the change c. Within 30 days of the change d. Within 45 days of the change

In North Carolina, if a licensee is convicted in any court of competent jurisdiction for any crime or offense other than a motor vehicle infraction, the licensee is required to notify the Commissioner in writing of the conviction within 10 days after the date of the conviction. The correct answer is: Within 10 days of the change

What is the requirement for a licensed resident agent countersigning an application on behalf of a nonresident agent? Select one: a. A licensed resident agent must always countersign on behalf of a nonresident agent b. A licensed resident agent may need to countersign on behalf of a nonresident agent, dependent on the amount of the policy c. A licensed resident agent may need to countersign on behalf of a nonresident agent, dependent on the age of the applicant d. A licensed resident agent never has to countersign on behalf of a nonresident agent

There is no requirement that a licensed resident agent or broker must countersign an application, policy, contract, or any other form of insurance on behalf of a nonresident agent. The correct answer is: A licensed resident agent never has to countersign on behalf of a nonresident agent

What is the act of conferring directly with a purchaser of a particular contract of insurance concerning any of the substantive benefits, terms, or conditions of the contract? Select one: a. Negotiate b. Sell c. Solicit d. Counsel

"Negotiate" means the act of conferring directly with, or offering advice directly to, a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms, or conditions of the contract, only if the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers. The correct answer is: Negotiate

If the Commissioner finds a person has intentionally misstated financial information, what is the minimum penalty? Select one: a. $500 b. $1,000 c. $2,000 d. $2,500

If any person in any financial or other statement intentionally misstates information, that person making oath to or subscribing the statement, the entity on whose behalf the person made the oath or subscribed the statement is subject to a fine imposed by the court of not less than $2,000, nor more than $10,000. The correct answer is: $2,000

Who represents a life insurance company domiciled in North Carolina in a foreign country or territory and either on a United States military installation or with United States military personnel? Select one: a. Foreign broker b. Alien agent c. Military personnel agent d. Foreign military sales agent

An individual may be licensed by the Commissioner as a foreign military sales agent to represent a life insurance company domiciled in North Carolina, provided the agent represents the insurance company only in a foreign country or territory and either on a United States military installation or with United States military personnel. The Commissioner may issue a license with such restrictions. The correct answer is: Foreign military sales agent

What is the maximum penalty for willfully violating a cease and desist order of the Commissioner? Select one: a. $1,500 b. $2,000 c. $2,500 d. $5,000

Any person who willfully violates a cease and desist order of the Commissioner after it has become final, and while the order is in effect, must forfeit and pay to the Commissioner the sum of between $1,000 and $5,000 for each violation. The correct answer is: $5,000

Any producer knowingly procuring by fraudulent representations premium will be guilty of a: Select one: a. Class 1 misdemeanor b. Class 2 misdemeanor c. Class A felony d. Class B felony

Any producer knowingly procuring by fraudulent representations premium will be guilty of a Class 1 misdemeanor. The correct answer is: Class 1 misdemeanor

If an applicant disagrees with the outcome of the review, how much time do they have to request a hearing with the Commissioner? Select one: a. 15 days b. 21 days c. 30 days d. 31 days

If an applicant disagrees with the outcome of the review, he or she must make a written request for a hearing to the Commissioner within 30 days after service upon the applicant of notice of the outcome. The correct answer is: 30 days

All of the following are true regarding nonresident producer licensing, EXCEPT: Select one: a. Nonresident licensees' home state is not North Carolina. b. Nonresident licensees are not required to pass the North Carolina licensing exam. c. Nonresident licensees must hold a valid producer license in their home state. d. Nonresident licensees must plan on moving to North Carolina within 6 months.

Nonresidents may receive a nonresident producer license in North Carolina even if they have no plans for moving. The correct answer is: Nonresident licensees must plan on moving to North Carolina within 6 months.

What is the maximum amount that the North Carolina Life and Health Guaranty Association will pay for an unallocated annuity contract from an insolvent insurer? Select one: a. $1,000,000 b. $2,000,000 c. $4,000,000 d. $5,000,000

The North Carolina Life and Health Guaranty Association will pay with respect to any one contract holder covered by any unallocated annuity contract, $5,000,000 in benefits, regardless of the number of such contracts held by that contract holder. The correct answer is: $5,000,000

All of the following are business entities, EXCEPT: Select one: a. A corporation b. A sole proprietorship c. An association d. A limited liability company

"Business entity" means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity. "Business entity" does not mean a sole proprietorship. The correct answer is: A sole proprietorship

What happens if a person reports an incidence of insurance fraud, without actual malice, and the information is proven to be false? Select one: a. They are not subject to civil liability. b. They are subject to civil liability. c. They are subject to criminal prosecution. d. They are subject to loss of license.

A person who merely reports an incidence of insurance fraud, without actual malice, is not subject to civil liability for the reported action. The correct answer is: They are not subject to civil liability.

An agent must provide to all applicants and policyholders federal privacy disclosure notices: Select one: a. In oral or written form b. In written or electronic form c. Within 60 days of the policy's cancellation d. Within 60 days of the policy's termination

An agent must provide to all applicants and policyholders federal privacy disclosure notices in written or electronic form. The correct answer is: In written or electronic form

A person who is licensed as an agent represents: Select one: a. The insurer b. The insured c. The policyowner d. The Commissioner

An agent represents the insurer. The correct answer is: The insurer

In North Carolina, a "person" can be: Select one: a. An individual only b. An individual or a partnership c. An individual or a corporation d. An individual, a partnership or a corporation

In North Carolina, "person" means an individual, partnership, firm, association, corporation, joint stock company, trust, any similar entity, or any combination of the foregoing acting in concert. The correct answer is: An individual, a partnership or a corporation

No person shall provide, present, or instruct any continuing education course unless that person has been qualified and possesses a license from: Select one: a. The Commissioner b. The administrator c. The Commissioner or administrator d. The NAIC

No person shall provide, present, or instruct any continuing education course unless that person has been qualified and possesses a license from the Commissioner or administrator. The correct answer is: The Commissioner or administrator

Resident agents may sell variable annuity products if they have met what other requirements? Select one: a. NAIC b. FINRA c. SEC d. PPACA

Resident agents may sell variable annuity products if they have met the FINRA requirements for North Carolina. The correct answer is: FINRA

An insurance producer inquired with what company a prospective client had a Medicare Supplement policy. When she told him, the producer was silent. Concerned by his silence, the woman asked if the company was a reliable company. The producer asked, "Have you received any financial statements regarding their solvency?" This producer: Select one: a. Was acting appropriately by refusing to comment personally on the competing insurance company b. Was engaging in misrepresentation c. Was engaging in defamation d. Was engaging in churning

The agent did not have to state literally that the company was possibly weak. He implied that within the context of the conversation. The correct answer is: Was engaging in defamation

Who pays agent appointment fees? Select one: a. The insurer b. The producer c. Policyholders d. NAIC

The insurer appointing the agent pays the appointment fee. The correct answer is: The insurer

How much time does an insurer have to give a blank proof of loss form to an insured after the receipt of notice? Select one: a. 15 days b. 21 days c. 30 days d. 31 days

When any company under any insurance policy requires a written proof of loss after notice of such loss has been given by the insured or beneficiary, the company or its representative will furnish a blank to be used for that purpose within 15 days after the receipt of notice. The correct answer is: 15 days

What must a limited representative licensee do to keep their license in force? Select one: a. Pay an annual renewal fee b. Renew it every 2 years c. Renew it every 4 years d. Meet continuing education requirements

A broker's or limited representative's license must be renewed by April 1 of each year, and renewal fees must be paid. The correct answer is: Pay an annual renewal fee

A person who submits a statement containing false or misleading information concerning a fact or matter material to the claim is guilty of a: Select one: a. Class C felony b. Class D felony c. Class G felony d. Class H felony

Any person who, with the intent to injure, defraud, or deceive an insurer or insurance claimant, presents a written or oral statement in support of a claim or other insurance policy benefit, statement contains false or misleading information concerning a fact or matter material to the claim is guilty of a Class H felony. The correct answer is: Class H felony

An agent offering to waive a prospective client's first life insurance premium is engaging in which of the following unfair practices? Select one: a. Misrepresentation b. Unfair discrimination c. Rebating d. Defamation

The agent is engaging in rebating. No producer will give, directly or indirectly, as an inducement to insurance, any rebate, discount, abatement, credit, or reduction of the premium in a policy of insurance, not specified in the policy of insurance. The correct answer is: Rebating

A business entity selling, soliciting, or negotiating insurance must obtain: Select one: a. Permission from the NAIC b. A Certificate of Insurance c. An insurance producer license d. Authorization from the Commissioner's designee

A business entity selling, soliciting, or negotiating insurance must obtain an insurance producer license. The correct answer is: An insurance producer license

In a contract of insurance, what is the insurer bound to do for the destruction, loss, or injury of something in which the other party has an interest? Select one: a. Pay money only b. Pay money or its equivalent c. Pay money or do some act of value d. Pay money or its equivalent or do some act of value

A contract of insurance is an agreement by which the insurer is bound to pay money or its equivalent or to do some act of value to the insured upon, and as an indemnity or reimbursement for the destruction, loss, or injury of something in which the other party has an interest. The correct answer is: Pay money or its equivalent or do some act of value

What is an incorporated society, order or supreme lodge, without capital stock, conducted solely for the benefit of its members and their beneficiaries and not for profit, operated on a lodge system with ritualistic form of work, having a representative form of government, and which provides benefits to its members? Select one: a. Masonic lodge b. Fraternal benefit society c. Limited liability partnership d. Limited liability corporation

A fraternal benefit society is any incorporated society, order or supreme lodge, without capital stock, whether incorporated or not, conducted solely for the benefit of its members and their beneficiaries and not for profit, operated on a lodge system with ritualistic form of work, having a representative form of government, and which provides benefits to its members. The correct answer is: Fraternal benefit society

In addition to a broker's license, a broker must hold what other license? Select one: a. Agent b. Insurer c. Limited representative d. Solicitor

An applicant for a broker's license must hold a valid agent's license upon application and throughout the duration of the broker's license. The correct answer is: Agent

Who provides funding for the North Carolina Life and Health Insurance Guaranty Association? Select one: a. Federal government b. State government c. Reinsurers d. Member companies

An association of insurers is created to pay benefits and to continue coverages through assessment imposed on insurers. The correct answer is: Member companies

What unfair trade practice manipulates through the threat of a negative result? Select one: a. Twisting b. Churning c. Coercion d. Intimidation

Intimidation manipulates through the threat of a negative result. The correct answer is: Intimidation

The Commissioner performs all of the following duties, EXCEPT: Select one: a. Issues certificates of authority and licenses b. Examines insurance companies c. Investigates insurers d. Amends insurance statutes

Legislators, not the Commissioner, write and amend statutes and laws. The correct answer is: Amends insurance statutes

When must producers notify the Commissioner of using an assumed named? Select one: a. Prior to use b. Within 5 days of use c. Within 10 days of use d. Not required

Producers must notify the Commissioner prior to using an assumed name. The correct answer is: Prior to use

All of the following acts are considered unfair trade practices, EXCEPT: Select one: a. Misrepresentation b. Replacement c. Rebating d. Coercion

Replacement is not, in itself, an illegal practice. It occurs when a new life insurance policy is written to take the place of an existing policy. It can rise to the level of twisting if a producer or insurer induces an insured through misrepresentation to lapse or surrender a policy in order to buy a similar policy from the selling producer or insurer. The correct answer is: Replacement

If the Commissioner believes a person has violated any insurance law, he may apply to a court to: Select one: a. Issue an arrest warrant b. Issue a cease and desist order c. Issue a restraining order d. Conduct an investigation

Whenever it appears to the Commissioner that any person has violated any insurance law, he may apply to the superior court of any county in which the violation has occurred for a restraining order and injunction to restrain such violation. If upon application the court finds that any insurance law has been violated the court will issue an order restraining and enjoining such violations. The correct answer is: Issue a restraining order