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PERSONAL LINES EVERYTHING YOU NEED IS HERE 100%
PASS GUARANTEED LATEST UPDATE
The Commissioner is elected to serve a _______ year term during each general election. There are no limits on the number of terms the Commissioner may seek office. - Answer 4 years
The commissioner is empowered to investigate what? Answer: to investigate and conduct hearings on any insurance matter in the state including conducting an oral examination and investigation of persons suspected to be involved in unfair competition or deceptive practices.
The NCDOI must examine the records of each Domestic Insurer at least once every ___ years. Answer 5 years
In the event a licensee is convicted of any crime, other than a motor vehicle infraction, the licensee shall notify the Commissioner within _____ days after the conviction. - Answer 10 days
Each Licensee must also, in writing, notify the NCDOI of any change of his or her residential address or e-mail address within ______days of such address change. If the information is not provided, the Licensee shall have to pay a $ ______Administrative fee to the NCDOI. -Answer -10 Days
-$50.
Persons suspected of violations of North Carolina insurance law must be given _____days notice prior to the date of any hearing. The notice must state the reason for the hearing and the charges under investigation by the Commissioner. - Answer 10 Days
Embezzlement of money received is punishable as a FELONY. If the amount embezzled is $100,000 or more it is a Class __ felony. If the amount is under $100,000 it is a Class ___ felony. The - Answer -Class C
-Class H
Any person who knowingly makes a false statement in a financial statement required by law is guilty of perjury. The person or entity making the false statement is guilty of a fine of between $_____and $_____. - Answer $2,000 and $10,
A license may be suspended for a period of to months for a first offense and ____ year for any further offenses. - Answer -1 to 6 Months
-1 Year
Complaint Records:
These shall be maintained at least ____years after the final disposition of the complaint. -Answer 5 years
No insurer shall decline to insure or refuse to continue to insure any individual, limit the amount, extent or kind of coverage available to an individual, or charge an individual a differential rate for the same coverage, SOLELY because of blindness or partial blindness or deafness or partial deafness. True or False. - Answer True
If an insurer requires a written proof of loss, the proof of loss form must be furnished by the insurer to the insured within _____days after the receipt from the insured having given notice of a pending claim. - Answer 15 days
If any person assumes to act either as principal or licensee without license as required by law the person is deemed guilty of a _______. - Answer Class 1 Misdemeanor
Can insurers or insurance producers offer insurance products through a credit card facility? - Answer No they can not
The Commission must meet at least ____times per year. - Answer 4 times
The Commissioner may issue a learner's permit authorizing the applicant to act as an adjuster for a learning period of _____days without a requirement of any other license. Not more than one learner's permit may ever be issued to one individual. - Answer 90 days
Any person who knowingly or willfully makes any false or fraudulent statement on any application for insurance, or who knowingly or willfully makes any such statement for the purpose of obtaining any monetary benefit from any company engaged in the business of insurance in North Carolina, is guilty of a ______ - Answer Class 1 Misdemeanor.
Insurance producers who signs any blank contract or policy of insurance is guilty of a Class 3 Misdemeanor and, upon conviction, will be punished by a fine of $______ to $_____. - Answer $1,000 to $5,
A Class 1 Misdemeanor has a penalty of $1,000 - $5,000 and/or an imprisonment for _____days but no more than ___ year. - Answer -30 days
-1 year
An insurer or insurance producer shall provide a "_______________" to all applicants or insureds involved with the insurance transactions at the time of application. - Answer Notice of Insurance Information Practices
What did the Federal Fair Credit Reporting Act of 1971 Establish? - Answer established the right of a consumer to know what information has been collected on him or her.
What did the Federal Privacy Act establish? -Answer established the requirement that personal information collected by the insurance industry could not be given to any other party without the consent of the affected party.
The Disclosure Authorization Form will remain valid from the date signed for ____ months for Property or Casualty Insurance applications. -Answer 12 months
The insurer shall, within ___________ business days from the date when the written request was received from an individual to correct recorded personal information, correct, amend or delete the recorded personal information in dispute; or notify the individual of the refusal to make the requested changes. - Answer 30 business days
Within ___________ days of the notice date from the insurer of an adverse underwriting decision, the applicant may request the insurer furnish within _____ business days the specific reason for the adverse decision if not initially furnished in writing and specific items of personal and privileged information that support those reasons. - Answer 90 days
21 business days
Any person who violates a Cease and Desist Order issued by the Commissioner is subject to a fine of $______ for each violation with a maximum of $_______.Also, the violator's license may be suspended or revoked by the Commissioner. - Answer -$10,
-$50,
Any person who, with intent to defraud, knowingly and willfully obtains from an insurer, insurance producer or ISO, information concerning any individual shall, upon conviction, be guilty of a _______. - Answer Class 1 Misdemeanor
Any person who willfully violates a Cease and Desist Order of the Commissioner after it has become final and while such order is in effect will forfeit and pay a fine for the use of PUBLIC SCHOOLS of the violation a sum of $_____to$_____. - Answer $1,000 to $5,
A person who attempts to obtain anything of value from another by false pretenses with intent to cheat, embezzle or defraud is guilty of ________ - Answer Class H felony
All licensees are required to complete _________ hours of NCDOI approved CE every ___ years - Answer 24 hours and 2 years
CE is due by the LAST DAY of the MONTH OF THE LICENSEE' BIRTHDAY in each compliance period. True or False - Answer True
An insurer may cancel a deviation only if the deviation has been in effect for at least ____ months prior to the effective date of the cancellation and the insurer gives the Commissioner notice of the cancellation at least ____ days before the effective date of the cancellation. Answer -6 Months
-15 days
No policy form applying to insurance on risks or operations covered by the Rate Bureau may be delivered or issued for delivery unless it has been filed with the Commissioner by the Rate Bureau and either he has approved it, or _____ days have elapsed and it has not disapproved. - Answer 90 days
Driving record premium surcharges are applied to policies for ___ years. A surcharge will be applied to individuals who have less than ___ years driving experience. - Answer 3 years
At-Fault Major Accidents are those resulting in bodily injury or death and/or property damage of $_____ or more - Answer $3,
At-Fault Intermediate Accidents are those resulting in property damage of more than $____ but less than $___ - Answer -$1,850 but less than $3,
At-Fault Minor Accidents are those resulting in property damage of $__or less. - Answer $
An "At-Fault Minor Accident" involving property damage ONLY does not receive a surcharge so long as no licensed operator in the household has any other chargeable accidents or convictions for moving traffic violations during the experience period. You may have heard this referred to as "accident forgiveness." True or False - Answer True
Property Damage" means damage or loss to a rented vehicle in excess of two hundred fifty dollars ($250.00), including loss of use and any costs or expenses incident to the damage or loss, for which the renter is legally obligated to pay; and "rented" means rented on a daily rate basis for a period of ___ consecutive days or less. - Answer 21 consecutive days
The North Carolina Motor Vehicle Reinsurance Facility AKA "The Facility" was developed to offer auto insurance to people that otherwise would not be able to get coverage through the voluntary market. It is called an "involuntary market" because the insurers would normally decline the applicant due to the applicants driving record. True or False - Answer True
Motor Vehicle insurance placed through the Facility is classified as what type of risk? Answer Substandard Risk
No licensed insurance producer of an insurer authorized to solicit and accept premiums for motor vehicle insurance for the company he represents may refuse on behalf of said company to accept any application from an eligible risk for such insurance and to immediately bind the coverage applied for and for a period of not less than ___ months. - Answer 6 Months
No insurance company or insurance producer may knowingly issue any fire insurance policy on property in North Carolina for an amount which, together with any existing insurance, exceeds the fair value of the property and not for a term exceeding ____ years. - Answer 7 Years
The NCIUA will have the power on behalf of its members:
(1) To cause to be issued policies of insurance to applicants.
(2) To assume reinsurance from its members.
(3) To cede reinsurance to its members and to purchase reinsurance in behalf of its members.
True or False. - Answer True
No licensee may solicit a power-of-attorney from a consumer that authorizes the licensee to sign insurance-related forms. True or False - Answer True
The Personal Auto Policy sold in North Carolina is a policy designed to provide no less
- Property Damage (PD) to a third party vehicle,
- Supplementary Payments on behalf of an insured.
Are supplementary Payments (that pay for legal defense cost) part of coverage A? - Yes
Supplementary payments will pay up to $ ___ for bail bonds if an insured is arrested - $
Supplementary payments will pay up to $____a day for loss of earnings by the insured because of attendance at hearings or trials and other reasonable expenses - Answer $
Supplementary payments will pay up to $_____for expenses incurred by an insured for emergency first aid to others performed at the scene of an accident that involved an insured vehicle under the policy. - Answer $
Part A is third party liability Coverage. True or False. -Answer True
Who is insured under Part A Liability Coverage? -Answer 1. Named insured for the ownership, maintenance or use of any auto or trailer;
- Spouse of the named insured, living in the same household, if not specifically named on the Declarations page;
- Any relative who shares the named insured's household, including any child or student away from your household but still dependent on the named insured for support;
- Anyone using the covered auto and who has express or implied permission to use the vehicle from the named insured.
Part A Liability Coverage follows the auto, not the driver. True or False.-Answer True
The PAP liability coverage does not apply to. - Answer 1. Bodily injury or property damage intended by an insured
- Property damage to property owned or being transported by an insured including property rented to, used by or in the care of an insured;
- To bodily injury to an employee of any insured while acting within the scope of his employment
- If an individual is covered under a Nuclear Energy Liability policy
- Ownership, maintenance or use of a motorized vehicle with less than four (4) wheels
- Any vehicle used to deliver persons (taxi) or property (livery) for hire.
If the auto is used in another state, the PAP amends to the minimum requirements of that state, but not less than the amount carried under the policy. True or False. - Answer True
As noted above, North Carolina does require that owner of a vehicle carry at least $________/$_________/$_______ PAP split limits of liability coverage. - Answer $30,000/$60,000/$25,
For example, J has a PAP with limits of 30/60/25 and causes an at-fault accident in which he injuries B and K. He causes $16,000 BI to B, $14,000 BI to K, and $18,000 PD to B's vehicle. How much will J's PAP pay?
Answer: Under this fact pattern the PAP will pay $16,000 to B for his BI, $18,000 to B for the PD to his vehicle and $14,000 to K for her BI.
Another example could be if J has a PAP with limits of 30/60/25 and he causes an at-fault accident in which he injuries C and K. He causes $26,000 BI to C and $34,000 BI to K along with $15,000 PD to C's vehicle. What does J's policy pay
Answer: $26,000 to C for BI, $15,000 to C for PD, and $30,000 to K for BI. The above example shows that the PAP will not pay more than $30,000 for one BI. Even though the policy had a $60,000 limit for BI the policy would not pay more than $30,000 for K's injuries.
Personal Auto Policy PAP Part A Minimum Limits of Liability Required in North Carolina:
The first number, $______, is for bodily injury BI, which reflects the maximum that will be paid for any ONE person suffering a BI in an occurrence accident. Answer $30,
- The insured and family members if struck as pedestrians by an auto.
Personal Auto Policy (PAP) Part B Our Right to Recover:
The insurer has the right of subrogation on all claims. True or False. - Answer True
PERSONAL AUTO POLICY (PAP) PART C
UNINSURED/UNDERINSURED MOTORISTS (UM/UIM):
This coverage part is sometimes referred to as "Combined Uninsured and Underinsured Motorist". Is this coverage MANDATORY in North Carolina? - Answer Yes
Your insurer will pay compensatory damages which you are legally entitled to recover from the owner or operator of an uninsured or underinsured motor vehicle because of bodily injury sustained by you and caused by an accident with an uninsured motorist. True or False. - Answer True
Any judgment against damages arising out of a suit is not binding on the insurer unless the insurer has been given a copy of what? - Answer the summons, complaint or other process against the uninsured motorist
Who does Part C insure? - Named insured or any family member or any other person occupying the covered auto, or any other auto operated by the insured. Besides those individuals previously mentioned, the following are also considered insureds under Part C: named insured or any family member struck by an uninsured vehicle as a pedestrian.
One of the following policy definitions of an uninsured/underinsured vehicle must be met by the vehicle involved before UM/UIM can apply: 1. A vehicle for which no auto liability policy, bond or security deposit has been filed with the Insurance Commissioner's office;
- A vehicle which has coverage but not sufficient to meet the minimum liability limits of North Carolina;
- A vehicle that has coverage, but the insuring company denies coverage or is or becomes insolvent;
- A "hit and run" vehicle that cannot be identified or located. This situation is classified as an Uninsured Motorist. In this situation the policy pays only for bodily injury only. It does not pay for property losses.
Uninsured Motor Vehicle means any motor vehicle or equipment except. 1. Owned by the named insured,
- Owned or operated by a self-insurer under any applicable motor vehicle law except a self-insurer who is or becomes insolvent,
- Owned by any government entity,
- Operated on rails or crawler treads,
- Farm tractor or equipment designed mainly for use off public roads unless being used on public roads
- While utilized for residing or premises.
Insurance Information Institute
If the insured (you) and the insurance company to which the UM/UIM applies do not agree on the amount of the claim, or if Part C applies, the insured (you) may make a written demand for arbitration. Arbitration only applies to what part of the PAP? - Answer Part C
An insured may not bring a suit until __________days after that person notifies the insurer of his belief that the prospective defendant is an uninsured motorist. - Answer 60 days
PAP PART D - COVERAGE FOR DAMAGE TO YOUR AUTO (AUTO PHYSICAL DAMAGE):
This section of the PAP is NOT mandatory coverage. However most lending institutions will require this coverages as long as the auto is being financed or leased. True or False. -Answer True
Personal Auto Policy (PAP) Collision Coverage:
Personal Auto Policy (PAP) Part D Transportation Expense (Theft):
- Transportation expenses incurred by the insured in the event of a total theft of a covered auto
- Loss of use expenses for which the insured becomes legally responsible in the event of the total theft of a non-owned auto.
The insurer will pay only expenses incurred during the period beginning _________ hours after the theft and ending when the covered auto or the non-owned auto is returned to use or the insurer pays for the loss of the vehicle loss. - Answer 48 hours
Personal Auto Policy - PAP Part D Salvage Charges:
In addition, the company will pay for general average and salvage charges for which an INSURED or any of the INSURED's FAMILY MEMBERS are legally liable in the transportation of an auto. True or False. - Answer True
Personal Auto Policy - PAP Part D Limits of Liability
Under Part D of the PAP, recovery is paid as the actual cash value of the stolen or damaged property or the amount necessary to repair or replace the property with other property of like kind and quality.
What is the most the policy will pay for, for any "non-owned" Trailer? - Answer $1,
Personal Auto Policy (PAP) Part D Limits of Liability:
What's the most the policy will pay for loss to personal effects? -fire and lightning losses only Answer $
Personal Auto Policy (PAP) Part D Limits of Liability:
What's the most the policy will pay for FACTORY INSTALLED electronic equipment in the vehicle? -Answer Unlimited Coverage
Personal Auto Policy (PAP) Part D Limits of Liability:
What's the most the policy will pay for Permanently installed electronic equipment designed for reproduction of sound, NOT FACTORY INSTALLED and including accessories. - Answer $1,
There is a $_____ deductible for items installed by other than the vehicle manufacturer. - Answer $1,
If the policyholder and insurance company cannot agree on the amount of the insurer's liability, either party has the right to request "appraisal" of the loss.
Each party pays their own APPRAISER and JOINTLY employ an "UMPIRE" who is neutral. Each appraiser arrives at a value for the claim. In the event of disagreement, the claim is submitted to the umpire. The agreement of any TWO PARTIES settles the claim. True or False - Answer True
If this coverage is cancelled or non-renewed, the insurer will provide coverage for up to ________days to protect the Loss Payee's interest. - Answer 10 days
Does the Personal Auto Policy provide coverage in Mexico. - Answer NO
True or False:
The Personal Auto Policy may NOT be assigned(transferred) without the insurance company's consent to another person or entity. - Answer True
Insurers may cancel the liability, medical payments and UM or combined UM/UIM during the policy period by mailing the notice by first class mail to the insured shown in the Declarations to the last known address at least _____ days notice prior to cancellation for non-payment of premiums and ____ days notice for all other reasons.
This endorsement pays a benefit if an insured is killed or dismembered while in or struck by a vehicle. The death or dismemberment must occur within ____ days of the accident. - Answer 90 Days
Personal Auto Policy Audio, Visual, and Data Electronic, and Tapes and Records, Discs and Other Media:
This endorsement covers items previously excluded under Part D such as audio, visual and electronic equipment. Coverage may be scheduled for each item. The coverage has a $___ deductible. Additionally, coverage can be provided for tapes, discs and records used in the devices up to $___. - Answer $
Driving Record - The driving record will have the largest impact on insurance premiums. North Carolina insurance points are charged for at-fault accidents and convictions for moving violations that occur within the experience period. The experience period is the ____ years immediately preceding the date of application or the preparation of the policy renewal. - Answer 3 years
Coverage Loss of Use:
The MH (C) form pays $__ per day to a maximum of ____ days reasonable additional living expenses. - Answer -$
-60 days
When purchased for an additional premium, the policies include coverage while moving the mobile home. True or False. - Answer True
The following perils are insured under both forms of the Mobile Homeowners policy - Answer 1. Fire or lightning-not scorching,
- Windstorm or hail,
- Explosion, smoke or smudge,
- Aircraft and vehicles,
- Flood and rising water,
- Theft including vandalism and malicious mischief (VMM),
- Falling objects,
- Breaking glass or safety glazing material.
Additional Perils for MH (C)
What are the additional perils covered? - Answer 1. Sinking
- Burning
- Collision
- Derailment of any conveyance transporting the mobile home.
Additional Perils for MH (F)
What are the additional perils covered? - Answer 1. Collapse of a building;
- Sudden and accidental tearing apart of a steam or hot water heating system, air conditioning system or an appliance for heating water;
- Sudden and accidental damage from artificially generated electrical current;
- Freezing from plumbing, heating or air conditioning system or household appliance;
- Weight of ice, snow or sleet;
- Accidental discharge or overflow of water from a plumbing, heating or air-conditioning system or within a household appliance.
an appliance kept at home
The National Flood Insurance Program belongs to whom?-Answer: FEMA and the FEMA belongs to Department of Homeland Security
The NFIP defines a flood as a general and temporary condition of partial or complete inundation of TWO OR MORE ACRES of normally dry land area or of two (2) or more properties from: - Answer 1. Overflow of inland or tidal waters,
- Unusual and rapid accumulation or runoff of surface waters from any source
- Mudflow - Mudflow is defined as, "A river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water.
