NC Accident and Health or Sickness Exam Prep (Group 4)
Which term applies to an insurance company domiciled in one state but operating in another, from the perspective of the state in which it operates?
foreign company
Abby lives in Maryland, where she is licensed as an insurance agent. She wants to apply for a nonresident license in North Carolina. Which of the following conditions must she satisfy?
he must show her license to be in good standing in Maryland.
Emil, an agent licensed in North Carolina, moves to a new home on April 30. He is required to notify the North Carolina Department of Insurance by what date?
May 10
Anthony becomes an agent for Acme Insurance Company. Acme has not filed the notice of appointment with the Commissioner. It must do so within how many days?
15
Terry is licensed in North Carolina as a life and health insurance agent. To maintain his license, how many hours of continuing education must he complete every two years?
24
What is the difference between a representation and a warranty in an insurance contract?
A representation is believed to be true, while a warranty is guaranteed to be true.
Agent Smith knows that his best friend, Agent Thomas, is embezzling money from clients. However, Agent Smith does not notify the Commissioner in order to protect his friend. What is the result?
Agent Smith's license will be revoked.
Emily solicits policies and accepts premiums from the public but is not licensed as an agent. She then turns over the applications and premiums to her husband, who is licensed. Which statement is correct?
Emily has committed a Class 1 misdemeanor.
Zelda, a producer selling health insurance, assures a prospective applicant that the insurance company she represents is backed by the protections of the North Carolina Life and Health Insurance Guaranty Association. Which of the following statements is correct regarding this kind of assurance?
It is prohibited at all times.
Which condition must exist for a risk to be considered insurable?
The loss must be ascertainable.
When an insurer employs field agents, who is responsible for delivering a new policy to a policyholder?
agent
During the application process, ABC Insurers receives personal and confidential information about Tom, who is applying for a life insurance policy. In which of the following circumstances must ABC Insurers obtain Tom's written authorization before disclosing this information?
before disclosing information to third parties for telemarketing and sales purposes
An insurable risk is not:
catastrophic
Beatrice is a member of the Supreme Lodge fraternal benefit society. What must Beatrice do before she can sell insurance on its behalf?
comply with the same general licensing requirements that apply to resident agents
Which of the following is NOT an unfair claims settlement practice if committed by an insurance company in North Carolina?
failing to promptly settle a claim for which liability is uncertain What considered an unfair claims settlement practice: * failing to promptly acknowledge communications about claims * offering to settle claims for less than due to encourage litigation * raising policy defenses to reduce a claim
While reviewing a life insurance policy issued by her home office, Angela notices that the premium is much higher than she quoted her client. The policy also has features that the client did not request. What should Angela do?
not present the policy to the insured until the home office reviews the policy and recalculates the premium
Statewide Insurers wants to obtain an investigative consumer report about an applicant because of questions it has regarding the individual's credit history. What must Statewide do before it can obtain a report?
notify the applicant that he has the right to be interviewed in connection with the report
Why would a business self-insure instead of buying an insurance policy?
to insure against frequent low-severity losses
When does an insurance policy take effect?
when the first premium is paid