North Carolina General Regulations Chapter 8- Exam Questions With Fully Solved Answers 2024.
National Association of Insurance Commissioners - Answer The acronym NAIC stands for:
The acronym NAIC stands for National Association of Insurance Commissioners.
Asking for further information - Answer Which of the following is NOT an unfair claim practice?
Any of the following acts, if committed without just cause and performed frequently, constitute improper and unfair claim practices: knowingly misrepresenting to claimants pertinent facts, failing to affirm or deny coverage of claims, offering to settle claims for an amount less than the amount reasonably due and many others.
Coercion - Answer What unfair trade practice manipulates through the prospect of something desirable?
Coercion generally manipulates through the prospect of something desirable.
Failure to pay child support - Answer The Commissioner may suspend, revoke or refuse to issue or renew an agent license for which of the following reasons?
The Commissioner may place on probation, suspend, revoke, or refuse to renew any license for failing to comply with an administrative or court order imposing a child support obligation or failing to pay STATE income tax.
Agents can never retain a portion of funds received for the payment of losses. - Answer In North Carolina, what is the rule on agents retaining any portion of funds received for the payment of losses? It shall be unlawful for any insurance carrier, or officer, agent or representative of an insurance company writing credit life and credit accident and health insurance to permit any agent or representative of such company to retain any portion of funds received for the payment of losses incurred.
A contract of insurance - Answer What is an agreement by which the insurer is bound to pay money as reimbursement for the destruction, loss, or injury of something in which the other party has an interest?
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.
An agent - Answer An unlicensed person who solicits or negotiates insurance is considered:
An unlicensed person who solicits or negotiates insurance is also an agent, meaning that the agent and the insurer he represents takes on the same liability.
The licensee is at least 65 years old. - Answer Which of the following will exempt a licensee from needing to complete the continuing education courses requirement?
A licensee is exempt from needing to complete the 24-hour continuing education courses requirement if the licensee is at least 65 years old and has been continuously licensed for at least 25 years.
15 days - Answer If an insurer terminates an appointment with a producer, how much time does it have to notify the producer?
Within 15 days after making the notification, the insurer will mail a copy of the notification to the producer at the producer's last known address.
$15,000 - Answer Brokers must put forth a bond of at least how much?
Broker applicants must put forth a bond of at least $15,000 for the use of aggrieved parties before the broker's license will be issued. Variable life insurance - Answer Limited line credit insurance includes all the following, EXCEPT:
"Limited line credit insurance" includes any type of credit insurance, mortgage life, mortgage guaranty, mortgage disability, automobile dealer gap insurance, and any other form of insurance offered in connection with an extension of credit that is limited to partially or wholly extinguishing that credit obligation and that the Commissioner determines should be designated a form of limited line credit insurance.
$1,000 - Answer What is the minimum penalty for willfully violating a cease and desist order of the Commissioner?
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.
Yes - Answer May an individual who holds a producer license in Texas qualify for a nonresident license in North Carolina?
An individual may qualify for a nonresident license if he holds a similar license in another state or territory of the United States.
$5,000 - Answer Any agent who signs a blank contract or policy of insurance will be fined a maximum of:
Any agent who signs a blank contract or policy of insurance is guilty of a Class 3 misdemeanor and, upon conviction, will be punished by a fine of at least $1,000, but no more than $5,000.
Defamation - Answer If an agent were to publish literature that is false or maliciously critical of another insurer calculated to injure a person engaged in the business of insurance, the agent would be committing:
Defamation is circulating of any oral or written statement or any pamphlet, circular, article, or literature which is false or maliciously critical of or substantially misrepresents the financial condition of an insurer and which is calculated to injure any person engaged in the business of insurance. They are not subject to civil liability. - Answer What happens if a person reports an incidence of insurance fraud, without actual malice, and the information is proven to be false?
A person who merely reports an incidence of insurance fraud, without actual malice, is not subject to civil liability for the reported action.
a. Mortgage disability insurance
b. Mortgage life insurance
d. Automobile dealer gap insurance - Answer Limited line credit insurance includes all the following.
$50 - Answer Violating the law regarding a licensee's change of address results in a fee of:
A licensee who violates this law shall pay an administrative fee of $50 to the Commissioner.
Class I felony - Answer A person who intentionally misstates financial information is guilty of a:
If any person in any financial or other statement intentionally misstates information, that person making oath to or subscribing the statement is guilty of a Class I felony.
18 - Answer The minimum age requirement to become a licensed insurance producer in North Carolina is:
An applicant for a producer's license must be at least 18 years of age.
Insurance Information and Privacy Protection Act - Answer Which act limits the disclosure of information collected in connection with insurance transactions and enables insurance applicants and policyholders to obtain the reasons for any adverse underwriting decision?
