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NC Casualty exam with verified answers
Which |!|of |!|the |!|following |!|is |!|eligible |!|to |!|receive |!|CGL |!|payments |!|for |!|medical |!| expenses |!|in |!|the |!|event |!|of |!|injury |!|at |!|the |!|insured's |!|premises? A. |!|The |!|named |!|insured B. |!|An |!|employee |!|injured |!|while |!|playing |!|basketball |!|for |!|a |!|company-sponsored |!| team C. |!|A |!|customer |!|who |!|attended |!|a |!|promotional |!|dinner |!|party D. |!|A |!|contractor |!|who |!|was |!|hired |!|to |!|perform |!|work |!|for |!|the |!|insured |!|- |!|correct |!| answer |!| ✔ C. |!|A |!|customer |!|who |!|attended |!|a |!|promotional |!|dinner |!|party When |!|Martha |!|returned |!|to |!|her |!|car |!|after |!|class, |!|another |!|driver |!|who |!|left |!|no |!| name |!|or |!|phone |!|number |!|had |!|damaged |!|the |!|rear |!|bumper. |!|Damage |!|to |!|the |!|car |!|was |!|$400. |!|Under |!|what |!|coverage |!|under |!|her |!|PAP |!|could |!|she |!|collect? |!|- |!| correct |!|answer |!| ✔ Property |!|Damage In |!|NC, |!|employers |!|have |!|several |!|options |!|to |!|choose |!|from |!|in |!|purchasing |!| Workers |!|comp |!|insurance. |!|This |!|is |!|utilizing |!|what |!|method? |!|- |!|correct |!|answer |!| ✔ Competition The |!|liberalization |!|clause |!|of |!|a |!|Businessowner's |!|policy |!|automatically |!|applies |!| favorable |!|expansions |!|of |!|coverage, |!|for |!|which |!|a |!|premium |!|is |!|not |!|charged, |!|if |!| the |!|changes |!|are |!|made |!|during |!|the |!|policy |!|period |!|or |!|within |!|what |!|time |!| period? |!|- |!|correct |!|answer |!| ✔ 45 |!|days |!|prior |!|to |!|the |!|effective |!|date To |!|become |!|a |!|broker |!|in |!|NC |!|requires |!|a |!|bond |!|of |!|what |!|amount? |!|- |!|correct |!| answer |!| ✔ $15,
If |!|an |!|agent's |!|appointment |!|or |!|license |!|is |!|cancelled |!|by |!|an |!|insurer, |!|the |!|insurer |!|must |!|give |!|written |!|notice |!|to |!|the |!|Commissioner |!|within |!|- |!|correct |!|answer |!| ✔ 30 |!|days Each |!|of |!|the |!|following |!|classes |!|of |!|employment |!|are |!|exempt |!|from |!|compulsory |!| Workers |!|Comp |!|requirements |!|EXCEPT: A. |!|Agricultural |!|workers B. |!|Domestic |!|workers C. |!|Farm |!|workers D. |!|Clerical |!|workers |!|- |!|correct |!|answer |!| ✔ D. |!|Clerical |!|workers The |!|Commissioner |!|may |!|do |!|all |!|of |!|the |!|following |!|EXCEPT: A. |!|Examine |!|the |!|books |!|and |!|records |!|of |!|agents |!|and |!|insurers B. |!|Make |!|insurance |!|regulations |!|(law) C. |!|Promulgate |!|insurance |!|law D. |!|Administer |!|oath |!|- |!|correct |!|answer |!| ✔ B. |!|Make |!|insurance |!|regulations |!|(law) When |!|insurance |!|rates |!|come |!|under |!|the |!|jurisdiction |!|of |!|North |!|Carolina |!|Rate |!| Bureau |!|and |!|an |!|insurer |!|wishes |!|to |!|change |!|those |!|rates, |!|the |!|insured |!|must |!|be |!| given |!|written |!|notice |!|of |!|this |!|change |!|at |!|least |!|how |!|many |!|days |!|in |!|advance? |!|- |!| correct |!|answer |!| ✔ 15 When |!|an |!|insurer |!|cancels |!|a |!|Commercial |!|Package |!|policy, |!|it |!|must |!|give |!|the |!| insured |!|- |!|correct |!|answer |!| ✔ 10 |!|days |!|advance |!|notice |!|for |!|nonpayment |!|of |!| premium, |!| 30 |!|days |!|notice |!|for |!|other |!|reasons
A. |!|Receiving |!|certifications |!|of |!|self-insurance |!|by |!|depositing |!|assets |!|with |!|the |!| Department |!|of |!|Motor |!|Vehicles B. |!|Filing |!|a |!|bond |!|acceptable |!|to |!|the |!|DMV C. |!|Providing |!|evidence |!|of |!|a |!|valid |!|automobile |!|policy D. |!|Honor |!|the |!|request |!|of |!|the |!|Reinsurance |!|Facility |!|- |!|correct |!|answer |!| ✔ D. |!| Honor |!|the |!|request |!|of |!|the |!|Reinsurance |!|Facility Which |!|definition |!|below |!|best |!|describes |!|an |!|Intermediate |!|accident? A. |!|Property |!|damage |!|is |!|between |!|$1,800 |!|and |!|less |!|than |!|$3, B. |!|Property |!|damage |!|greater |!|than |!|$3,000 |!|or |!|BI C. |!|Property |!|damage |!|less |!|than |!|$1, D. |!|Property |!|damage |!|between |!|$1,000 |!|and |!|$2,000 |!|- |!|correct |!|answer |!| ✔ A. |!| Property |!|damage |!|is |!|between |!|$1,800 |!|and |!|less |!|than |!|$3, Proof |!|of |!|Loss |!|- |!|correct |!|answer |!| ✔ Documentation |!|required |!|by |!|an |!|insurer |!| from |!|an |!|insured |!|to |!|substantiate |!|the |!|specifics |!|of |!|a |!|claim Which |!|one |!|of |!|the |!|following |!|is |!|NOT |!|one |!|of |!|the |!|components |!|that |!|required |!| in |!|all |!|Commercial |!|Package |!|policies? A. |!|Coverage |!|Parts B. |!|Object |!|Definitions |!|Form C. |!|Common |!|Policy |!|Conditions D. |!|Common |!|Policy |!|Declarations |!|- |!|correct |!|answer |!| ✔ B. |!|Object |!|Definitions |!| Form
When |!|does |!|the |!|Commissioner's |!|term |!|of |!|office |!|begin? |!|- |!|correct |!|answer |!| ✔ January |!|1st |!|following |!|the |!|year |!|of |!|election Representations |!|- |!|correct |!|answer |!| ✔ All |!|statements |!|or |!|descriptions |!|in |!|an |!| application |!|for |!|insurance Membership |!|in |!|the |!|NC |!|Motor |!|Vehicle |!|Reinsurance |!|Facility |!|is? |!|- |!|correct |!| answer |!| ✔ Required |!|for |!|all |!|insurers |!|writing |!|auto |!|insurance |!|in |!|NC, |!|including |!| domestic |!|companies Under |!|the |!|PAP, |!|supplementary |!|payments |!|could |!|provide |!|payment |!|for |!|all |!|of |!| the |!|following |!|EXCEPT: A. |!|court |!|costs |!|if |!|a |!|civil |!|lawsuit |!|is |!|defended B. |!|Charges |!|incurred |!|for |!|renting |!|a |!|car |!|when |!|the |!|insured's |!|vehicle |!|was |!| disabled |!|in |!|a |!|wreck C. |!|A |!|parking |!|garage |!|fee |!|that |!|the |!|insured |!|incurs |!|while |!|attending |!|a |!| deposition |!|at |!|an |!|attorney's |!|office D. |!|lost |!|wages |!|the |!|insured |!|might |!|suffer |!|by |!|attending |!|court |!|proceedings |!|- |!| correct |!|answer |!| ✔ B. |!|Charges |!|incurred |!|for |!|renting |!|a |!|car |!|when |!|the |!|insured's |!| vehicle |!|was |!|disabled |!|in |!|a |!|wreck All |!|of |!|the |!|following |!|violations |!|could |!|result |!|in |!|surcharges |!|under |!|the |!|Safe |!| Driver |!|Incentive |!|Plan |!|EXCEPT: A. |!|Driving |!|while |!|impaired B. |!|Illegal |!|parking |!|in |!|a |!|fire |!|lane C. |!|Speeding |!|in |!|excess |!|of |!| 15 |!|mph |!|over |!|the |!|limit D. |!|Death |!|by |!|vehicle |!|- |!|correct |!|answer |!| ✔ B. |!|Illegal |!|parking |!|in |!|a |!|fire |!|lane
Under |!|the |!|PAP, |!|all |!|of |!|the |!|following |!|could |!|be |!|covered |!|EXCEPT: A. |!|Property |!|damage |!|to |!|the |!|named |!|insured's |!|residence |!|if |!|struck |!|by |!|the |!| insured's |!|vehicle B. |!|Medical |!|payments |!|to |!|an |!|insured |!|person |!|if |!|struck |!|as |!|a |!|pedestrian C. |!|Repair |!|of |!|a |!|window |!|broken |!|by |!|a |!|falling |!|object D. |!|Theft |!|of |!|a |!|vehicle |!|- |!|correct |!|answer |!| ✔ A. |!|Property |!|damage |!|to |!|the |!|named |!|insured's |!|residence |!|if |!|struck |!|by |!|the |!|insured's |!|vehicle Occurrence |!|- |!|correct |!|answer |!| ✔ type |!|of |!|Commercial |!|Crime |!|form |!|covers |!| losses |!|that |!|are |!|sustained |!|during |!|the |!|policy |!|period |!|and |!|discovered |!|either |!| during |!|the |!|policy |!|period |!|or |!|up |!|to |!|one |!|year |!|after |!|the |!|policy |!|expires Replacement |!|cost |!|- |!|correct |!|answer |!| ✔ amount |!|it |!|would |!|take |!|to |!|replace |!| property |!|without |!|deducting |!|for |!|depreciation Actual |!|Cash |!|Value |!|(ACV) |!|- |!|correct |!|answer |!| ✔ Cost |!|to |!|replace |!|property |!|with |!| new |!|property |!|of |!|like |!|kind |!|and |!|quality |!|with |!|depreciation. Coinsurance |!|- |!|correct |!|answer |!| ✔ Prevents |!|payment |!|for |!|all |!|of |!|a |!|partial |!|loss Minimum |!|amount |!|of |!|insurance |!|required |!|to |!|avoid |!|coinsurance |!|- |!|correct |!| answer |!| ✔ 80% Business |!|Interruption |!|- |!|correct |!|answer |!| ✔ Covers |!|loss |!|of |!|earnings |!|of |!|the |!| business |!|due |!|to |!|damage |!|or |!|destruction |!|of |!|property
Builder's |!|Risk |!|- |!|correct |!|answer |!| ✔ Covers |!|buildings |!|in |!|the |!|course |!|of |!| construction Fidelity |!|Bond |!|- |!|correct |!|answer |!| ✔ Covers |!|losses |!|due |!|to |!|dishonest |!|acts |!|by |!| employees Commercial |!|General |!|Liability |!|(CGL) |!|- |!|correct |!|answer |!| ✔ Protects |!|the |!|business |!|from |!|financial |!|loss |!|due |!|to |!|damages |!|caused |!|by |!|products, |!|operations, |!|or |!| employees Surety |!|Bond |!|- |!|correct |!|answer |!| ✔ A |!|financial |!|guarantee |!|of |!|your |!|performance |!| of |!|a |!|specific |!|action Umbrella |!|Coverage |!|- |!|correct |!|answer |!| ✔ provides |!|protection |!|above |!|the |!|basic |!| limits |!|of |!|liability |!|coverage Which |!|of |!|the |!|following |!|losses |!|is |!|not |!|excluded |!|on |!|a |!|BOP? A. |!|The |!|power |!|plant |!|suffered |!|a |!|mechanical |!|breakdown |!|of |!|equipment |!|and |!| the |!|insured |!|premises |!|lost |!|power B. |!|A |!|truck |!|crashed |!|into |!|a |!|utility |!|pole |!|on |!|the |!|other |!|side |!|of |!|town |!|and |!|the |!| insured |!|premises |!|lost |!|power C. |!|A |!|tree |!|fell |!|down |!|on |!|the |!|insured |!|building, |!|taking |!|down |!|the |!|utility |!|pole |!| and |!|interrupting |!|power D. |!|A |!|neighboring |!|business |!|was |!|destroyed |!|in |!|a |!|fire |!|that |!|interrupted |!|the |!| insured's |!|power |!|- |!|correct |!|answer |!| ✔ C. |!|A |!|tree |!|fell |!|down |!|on |!|the |!|insured |!| building, |!|taking |!|down |!|the |!|utility |!|pole |!|and |!|interrupting |!|power
What |!|term |!|is |!|used |!|to |!|describe |!|a |!|peril |!|such |!|as |!|a |!|fire |!|or |!|explosion? A.Hazard B. |!|Exposure C. |!|Risk D. |!|Cause |!|of |!|loss |!|- |!|correct |!|answer |!| ✔ D. |!|Cause |!|of |!|loss The |!|terms |!|'named |!|insured' |!|and |!|'insured' |!|have |!|distinct |!|meanings. |!|Which |!|of |!| the |!|following |!|would |!|not |!|qualify |!|as |!|an |!|insured |!|under |!|an |!|insurance |!|policy? A.Employees |!|of |!|an |!|insured |!|business |!|while |!|in |!|the |!|course |!|and |!|scope |!|of |!|their |!|employment. B. |!|A |!|teenage |!|girl |!|with |!|a |!|driver's |!|license |!|who |!|lives |!|with |!|her |!|parents. C. |!|A |!|trespasser |!|who |!|removes |!|apples |!|from |!|a |!|tree |!|in |!|the |!|named |!|insured's |!| back |!|yard. D. |!|A |!|person |!|who |!|drives |!|the |!|insured |!|auto |!|with |!|permission |!|of |!|the |!|named |!| insured. |!|- |!|correct |!|answer |!| ✔ C. |!|A |!|trespasser |!|who |!|removes |!|apples |!|from |!|a |!| tree |!|in |!|the |!|named |!|insured's |!|back |!|yard. The |!|North |!|Carolina |!|Rate |!|Bureau |!|establishes |!|property |!|insurance |!|rates |!|for A. |!|Farm |!|real |!|property B. |!|Farm |!|personal |!|property C. |!|Residential |!|real |!|property |!|with |!|up |!|to |!| 4 |!|housing |!|units D. |!|Residential |!|real |!|property |!|with |!|more |!|than |!| 4 |!|housing |!|units |!|- |!|correct |!| answer |!| ✔ C. |!|Residential |!|real |!|property |!|with |!|up |!|to |!| 4 |!|housing |!|units
Tom |!|bought |!|a |!|tractor-trailer |!|and |!|operates |!|as |!|a |!|carrier-for-hire. |!|He |!| transports |!|cargo |!|for |!|several |!|companies |!|and |!|is |!|paid |!|a |!|fee |!|for |!|his |!|services. |!| Which |!|type |!|of |!|commercial |!|auto |!|form |!|would |!|be |!|most |!|appropriate |!|for |!|his |!| business? A. |!|Truckers |!|policy |!|or |!|motor |!|carrier |!|policy B. |!|Truckers |!|policy C. |!|Motor |!|carrier |!|policy D. |!|Neither |!|a |!|truckers |!|policy |!|nor |!|a |!|motor |!|carrier |!|policy |!|- |!|correct |!|answer |!| ✔ A. |!|Truckers |!|policy |!|or |!|motor |!|carrier |!|policy Emil, |!|an |!|agent |!|licensed |!|in |!|North |!|Carolina, |!|moves |!|to |!|a |!|new |!|home |!|on |!|April |!|
- |!|He |!|is |!|required |!|to |!|notify |!|the |!|North |!|Carolina |!|Department |!|of |!|Insurance |!|by |!|what |!|date? A. |!|May |!| 7 B. |!|May |!| 10 C. |!|May |!| 30 D. |!|October |!| 31 |!|- |!|correct |!|answer |!| ✔ B. |!|May |!| 10 The |!|garagekeepers |!|exclusions |!|preclude |!|coverage |!|for |!|contractually |!|assumed |!| liability |!|for |!|all |!|of |!|the |!|following |!|EXCEPT: A. |!|Improper |!|brake |!|replacement |!|performed |!|by |!|an |!|auto |!|repair |!|shop B. |!|Scratches |!|on |!|a |!|customer's |!|car |!|caused |!|by |!|an |!|employee |!|of |!|an |!|auto |!| detailing |!|business C. |!|Repainting |!|of |!|a |!|customer's |!|car |!|by |!|a |!|body |!|shop |!|after |!|it |!|applied |!|the |!| wrong |!|color D. |!|Damage |!|to |!|customer's |!|car |!|caused |!|by |!|a |!|fire |!|while |!|it |!|was |!|stored |!|in |!|a |!| garage |!|awaiting |!|repairs |!|- |!|correct |!|answer |!| ✔ D. |!|Damage |!|to |!|customer's |!|car |!| caused |!|by |!|a |!|fire |!|while |!|it |!|was |!|stored |!|in |!|a |!|garage |!|awaiting |!|repairs
The |!|Extended |!|Transportation |!|Expenses |!|Coverage |!|(PP |!| 03 |!|02) |!|endorsement |!| provides |!|additional |!|coverage |!|for |!|transportation |!|expenses |!|and |!|loss |!|of |!|use |!| expenses. |!|What |!|is |!|the |!|maximum |!|amount |!|the |!|insurer |!|typically |!|will |!|pay? A. |!|$ B. |!|$ C. |!|$ D. |!|$600 |!|- |!|correct |!|answer |!| ✔ B. |!|$ If |!|an |!|agent |!|unknowingly |!|sells |!|insurance |!|on |!|behalf |!|of |!|an |!|unauthorized |!| insurer, |!|the |!|agent |!|has |!|committed |!|a A. |!|Class |!| 1 |!|misdemeanor B. |!|Class |!| 2 |!|misdemeanor C. |!|Class |!|C |!|felony D. |!|Class |!|H |!|felony |!|- |!|correct |!|answer |!| ✔ A. |!|Class |!| 1 |!|misdemeanor Murphy's |!|Pub |!|is |!|a |!|small |!|business |!|in |!|a |!|rural |!|town. |!|It |!|is |!|open |!|for |!|business |!| from |!| 2 |!|p.m. |!|to |!|midnight |!|every |!|day. |!|The |!|building |!|is |!|10,000 |!|square |!|feet |!|and |!|the |!|business |!|has |!|$600,000 |!|in |!|annual |!|gross |!|sales. |!|For |!|what |!|reason |!|is |!| Murphy's |!|Pub |!|not |!|eligible |!|for |!|a |!|business |!|owners |!|policy? A. |!|It's |!|open |!|every |!|day B. |!|Its |!|annual |!|gross |!|sales |!|are |!|too |!|high C. |!|Bars |!|and |!|pubs |!|are |!|ineligible D. |!|Buildings |!|under |!|100,000 |!|square |!|feet |!|are |!|ineligible |!|- |!|correct |!|answer |!| ✔ C. |!| Bars |!|and |!|pubs |!|are |!|ineligible
Patricia |!|was |!|involved |!|in |!|a |!|car |!|accident |!|and |!|is |!|accused |!|of |!|being |!|negligent. |!| She |!|alleges |!|the |!|other |!|party |!|contributed |!|equally |!|to |!|the |!|accident. |!|What |!|is |!| Patricia's |!|allegation |!|called? A. |!|Gross |!|negligence B. |!|Defense |!|against |!|negligence C. |!|Proximate |!|cause D. |!|General |!|damages |!|- |!|correct |!|answer |!| ✔ B. |!|Defense |!|against |!|negligence The |!|Gramm-Leach-Bliley |!|Act, |!|the |!|Federal |!|Trade |!|Commission |!|Act, |!|and |!|the |!| Health |!|Insurance |!|Portability |!|and |!|Accountability |!|Act |!|were |!|enacted |!|to A. |!|keep |!|insurance |!|rates |!|affordable |!|for |!|consumers B. |!|protect |!|the |!|privacy |!|of |!|consumers' |!|information C. |!|identify |!|and |!|punish |!|insurers' |!|fraudulent |!|practices D. |!|provide |!|consumers |!|and |!|insurers |!|a |!|means |!|to |!|settle |!|disputes |!|without |!| litigation |!|- |!|correct |!|answer |!| ✔ B. |!|protect |!|the |!|privacy |!|of |!|consumers' |!| information While |!|visiting |!|Archon |!|Corporation, |!|a |!|prospective |!|customer |!|slips |!|and |!|falls |!|in |!|the |!|lobby |!|and |!|breaks |!|his |!|arm. |!|He |!|files |!|a |!|claim |!|against |!|Archon. |!|Which |!|loss |!|exposure |!|covered |!|under |!|the |!|commercial |!|general |!|liability |!|policy |!|is |!|involved |!| in |!|this |!|claim? A. |!|Products |!|and |!|completed |!|operations |!|liability B. |!|Independent |!|contractor |!|liability C. |!|Contractual |!|liability D. |!|Premises |!|and |!|operations |!|liability |!|- |!|correct |!|answer |!| ✔ D. |!|Premises |!|and |!| operations |!|liability
The |!|Insurance |!|Commissioner |!|cannot |!|suspend |!|or |!|revoke |!|an |!|agent's |!|license |!| for |!|which |!|of |!|the |!|following |!|reasons? A. |!|Failing |!|to |!|meet |!|projected |!|sales |!|goals B. |!|Having |!|an |!|agent's |!|license |!|denied |!|or |!|suspended |!|in |!|another |!|state C. |!|Forging |!|an |!|individual's |!|name |!|on |!|an |!|insurance |!|application D. |!|Accepting |!|insurance |!|from |!|an |!|unlicensed |!|individual |!|- |!|correct |!|answer |!| ✔ A. |!| Failing |!|to |!|meet |!|projected |!|sales |!|goals Workers |!|compensation |!|in |!|North |!|Carolina |!|is |!|administered |!|through |!|the A. |!|North |!|Carolina |!|Rate |!|Bureau B. |!|North |!|Carolina |!|Insurance |!|Underwriting |!|Association C. |!|North |!|Carolina |!|Industrial |!|Commission D. |!|North |!|Carolina |!|Department |!|of |!|Insurance |!|- |!|correct |!|answer |!| ✔ C. |!|North |!| Carolina |!|Industrial |!|Commission Cassy |!|wants |!|to |!|avoid |!|the |!|risk |!|of |!|being |!|sued |!|because |!|her |!|dog |!|bit |!|someone. |!|What |!|might |!|she |!|do |!|to |!|avoid |!|this |!|risk? A. |!|Own |!|a |!|Golden |!|Retriever B. |!|Not |!|own |!|a |!|dog C. |!|Send |!|her |!|dog |!|to |!|obedience |!|school D. |!|Muzzle |!|her |!|dog |!|- |!|correct |!|answer |!| ✔ B. |!|Not |!|own |!|a |!|dog Norbert |!|Brothers |!|Accounting |!|submits |!|a |!|claim |!|under |!|its |!|commercial |!|crime |!| policy. |!|It |!|seems |!|that |!|one |!|of |!|the |!|owners, |!|Bob |!|Norbert, |!|embezzled |!|company |!| funds |!|and |!|fled |!|to |!|the |!|Caribbean. |!|How |!|does |!|the |!|crime |!|policy |!|respond? A. |!|It |!|denies |!|the |!|claim |!|under |!|the |!|Confidential |!|Information |!|exclusion
B. |!|It |!|denies |!|the |!|claim |!|under |!|the |!|exclusion |!|for |!|Dishonest |!|Acts |!|of |!|the |!| Named |!|Insured, |!|Partners, |!|or |!|members C. |!|It |!|pays |!|the |!|claim |!|under |!|Employee |!|Theft |!|coverage D. |!|It |!|pays |!|the |!|claim |!|under |!|Embezzlement |!|coverage |!|- |!|correct |!|answer |!| ✔ B. |!|It |!|denies |!|the |!|claim |!|under |!|the |!|exclusion |!|for |!|Dishonest |!|Acts |!|of |!|the |!|Named |!| Insured, |!|Partners, |!|or |!|members Jane's |!|insurance |!|policy |!|contains |!|a |!|stated |!|amount |!|valuation |!|provision. |!|This |!| provision |!|states |!|that |!|she |!|will |!|receive |!|the |!|lowest |!|of |!|three |!|amounts |!|if |!|her |!| covered |!|property |!|is |!|stolen |!|or |!|destroyed. |!|Which |!|of |!|the |!|following |!|is |!|not |!|one |!|of |!|those |!|three |!|amounts? A. |!|The |!|property's |!|actual |!|cash |!|value |!|at |!|the |!|time |!|of |!|the |!|loss B. |!|The |!|property's |!|actual |!|cash |!|value |!|at |!|the |!|time |!|of |!|the |!|loss, |!|minus |!| depreciation C. |!|The |!|cost |!|to |!|repair |!|or |!|replace |!|the |!|property |!|with |!|similar |!|property D. |!|The |!|dollar |!|amount |!|of |!|insurance |!|specified |!|in |!|the |!|policy |!|schedule |!|- |!|correct |!|answer |!| ✔ B. |!|The |!|property's |!|actual |!|cash |!|value |!|at |!|the |!|time |!|of |!|the |!|loss, |!| minus |!|depreciation Which |!|of |!|the |!|following |!|is |!|directly |!|responsible |!|for |!|regulating |!|the |!|insurance |!| industry |!|in |!|North |!|Carolina? A. |!|Insurance |!|companies B. |!|Attorney |!|General C. |!|Governor D. |!|Insurance |!|Commissioner |!|- |!|correct |!|answer |!| ✔ D. |!|Insurance |!|Commissioner An |!|uninsured, |!|distracted |!|driver |!|crashes |!|into |!|the |!|two |!|cars |!|parked |!|in |!|Kate's |!| driveway. |!|When |!|the |!|driver |!|backs |!|away |!|from |!|the |!|damaged |!|cars, |!|she |!|rips |!|
Stuart |!|is |!|involved |!|in |!|a |!|relationship |!|whereby |!|he |!|arranges |!|for |!|ABC |!|Insurance |!| Company |!|to |!|guarantee |!|his |!|performance |!|to |!|Timothy. |!|What |!|term |!|describes |!| Stuart's |!|relationship |!|with |!|ABC |!|and |!|Timothy? A. |!|Suretyship B. |!|Receivership C. |!|Fidelity D. |!|Reinsurance |!|- |!|correct |!|answer |!| ✔ A. |!|Suretyship It |!|is |!|an |!|unfair |!|method |!|of |!|competition |!|for |!|a |!|producer |!|to |!|portray |!|the |!|terms |!| and |!|benefits |!|of |!|an |!|insurance |!|policy |!|inaccurately |!|to |!|a |!|prospective |!|purchaser. |!|This |!|deceptive |!|practice |!|is |!|called A. |!|False |!|advertising B. |!|Rebating C. |!|Misrepresentation D. |!|Defamation |!|- |!|correct |!|answer |!| ✔ C. |!|Misrepresentation Sean |!|posts |!|a |!|notice |!|on |!|the |!|bulletin |!|board |!|at |!|his |!|apartment |!|complex |!|to |!| advertise |!|the |!|sale |!|of |!|his |!|car. |!|He |!|notes |!|that |!|he |!|will |!|transfer |!|the |!|remaining |!| eight |!|months |!|of |!|his |!|auto |!|insurance |!|policy |!|to |!|the |!|new |!|owner. |!|How |!|may |!| Sean |!|assign |!|his |!|auto |!|insurance |!|policy? A. |!|Only |!|with |!|the |!|written |!|consent |!|of |!|the |!|insurer B. |!|Only |!|if |!|the |!|purchaser |!|agrees |!|to |!|this |!|transfer C. |!|Only |!|if |!|the |!|purchaser |!|pays |!|additional |!|consideration |!|for |!|this |!|assignment D. |!|Only |!|if |!|the |!|seller |!|purchases |!|eight |!|months |!|of |!|coverage |!|for |!|the |!|buyer |!|- |!| correct |!|answer |!| ✔ A. |!|Only |!|with |!|the |!|written |!|consent |!|of |!|the |!|insurer
To |!|qualify |!|for |!|an |!|insurance |!|agent's |!|license, |!|a |!|person |!|must |!|have |!|all |!|of |!|the |!| following |!|EXCEPT: A. |!|College |!|degree B. |!|Good |!|reputation |!|and |!|character C. |!|Licensing |!|fee D. |!| 18 |!|years |!|of |!|age |!|- |!|correct |!|answer |!| ✔ A. |!|College |!|degree When |!|Joe |!|began |!|working |!|for |!|Excelsior |!|Tool |!|& |!|Die |!|Company, |!|he |!|became |!| eligible |!|for |!|workers |!|compensation |!|benefits. |!|Having |!|such |!|benefits |!|meant |!| that |!|Joe |!|gave |!|up |!|his |!|right |!|to |!|sue |!|Excelsior |!|for |!|work-related |!|injuries. |!|Which |!| provision |!|in |!|the |!|state's |!|workers |!|compensation |!|laws |!|removes |!|this |!|right |!|to |!| sue? A. |!|Covered |!|employments |!|provision B. |!|Exclusive |!|remedy |!|provision C. |!|Penalties |!|for |!|failure |!|to |!|insure |!|provision D. |!|Independent |!|contractors |!|provision |!|- |!|correct |!|answer |!| ✔ B. |!|Exclusive |!| remedy |!|provision Alhambra |!|Construction |!|Corp's |!|workers |!|compensation |!|insurance |!|policy |!|has |!| an |!|experience |!|modification |!|factor |!|of |!|1.8. |!|What |!|effect |!|will |!|this |!|mod |!|have |!| on |!|Alhambra's |!|premium |!|for |!|workers |!|compensation |!|insurance? A. |!|It |!|indicates |!|average |!|loss |!|experience |!|and |!|will |!|not |!|affect |!|the |!|premium. B. |!|It |!|indicates |!|a |!|less |!|than |!|average |!|loss |!|experience |!|and |!|will |!|reduce |!|the |!| premium. C. |!|It |!|indicates |!|no |!|losses |!|and |!|will |!|allow |!|for |!|a |!|minimum |!|premium. D. |!|It |!|indicates |!|a |!|higher |!|than |!|average |!|loss |!|experience |!|and |!|will |!|increase |!|the |!| premium. |!|- |!|correct |!|answer |!| ✔ D. |!|It |!|indicates |!|a |!|higher |!|than |!|average |!|loss |!| experience |!|and |!|will |!|increase |!|the |!|premium.
