North Carolina Insurance Statutes and Regulations Practice Test

These questions are part of the practice quiz. Start practicing

• What happens if an insurer cannot comply with the notice requirement for cancellation?
• Does the Commissioner of Insurance have the authority to arrest individuals?
• What is a "certificate of insurance"?
• In terms of motor insurance policies, what does the term 'non-renewal' refer to?
• What type of coverage does the North Carolina Insurance Guaranty Association provide?
• What is the minimum age requirement to apply for an insurance license in North Carolina?
• What type of property can the NCIUA insure?
• What is “rebating” in the context of insurance?
• What is the implication of cancellation for a customer?
• What must insurers in North Carolina include in their advertising materials?
• Under N.C. law, what is the minimum bodily injury liability coverage required for vehicles?
• Which action is prohibited in relation to other insurers according to unfair trade practices?
• What are “exclusions” in an insurance policy?
• Whose responsibility is it to enforce the provisions of insurance law in North Carolina?
• What is the purpose of the postassessment insurance guaranty association?
• What does the term "market conduct" refer to in the insurance industry?
• What additional coverage is mandated under the North Carolina Flood Insurance Act?
• For how long is the Commissioner of Insurance elected in North Carolina?
• What is considered defamation in the context of insurance?
• How does North Carolina define “agent” in the insurance context?
• What does “underwriting” mean in insurance?
• What is a potential penalty for an insurance company that violates the North Carolina Insurance Code?
• Which of the following entities can utilize a limited license?
• What must insurers disclose when providing a policy quote in North Carolina?
• What is the limitation of scope regarding the NC Rate Bureau?
• What is excluded from the NCIUA's insurable property criteria?
• How does North Carolina law treat agents who are affiliated with multiple insurers?
• Which of the following practices is considered an "unfair trade practice"?
• What essential information must insurance producers maintain records of?
• Under what circumstance can a temporary insurance producer license be issued to a spouse?
• In North Carolina, what is the required continuing education for insurance agents?
• What role do actuaries play in insurance?
• Why is it important for an insurer to provide the consumer with information following an adverse decision?
• What is a major consequence of failing to pay an insurance premium?
• Under North Carolina law, how must claims be settled?
• Which of the following covers both bodily injury and uninsured motorists?
• Under North Carolina law, what is “pre-existing condition” in health insurance?
• To whom must the NC Rate Bureau report its findings on insurance rates?
• How long does an individual have to notify authorities after moving their residency?
• What is an insurance policy’s “declaration page”?
• How should insurers handle consumer privacy according to regulations?
• What is the primary duty of members in the NC Rate Bureau?
• Is physical damage coverage required if requested by the facility?
• What is the maximum limit for bodily injury coverage under a motor vehicle policy?
• What is the required number of prelicensure hours for applicants of Medicare supplement insurance?
• What is the statute of limitations for filing a lawsuit for uninsured motorist benefits in North Carolina?
• What criteria must individuals meet to be eligible for NCJUA?
• Which of the following is NOT a responsibility of the North Carolina Department of Insurance?
• What is the definition of “insurance fraud” under North Carolina law?
• Which factor can cause an adverse underwriting decision?
• What is the consequence for an agent selling insurance without a license in North Carolina?
• How often must an insurance agent in North Carolina renew their license?
• Which type of policy does the NCJUA specifically exclude?
• Which of the following is typically covered under a standard homeowners insurance policy?
• What does the term "unfair trade practices" refer to in insurance regulations?
• Is it mandatory for everyone seeking an insurance license to take exams?
• What is the purpose of the safe driver incentive plan filed by the bureau?
• What does a liability insurance policy primarily cover?
• What are surplus lines insurance?
• Are insurance agents allowed to accept gratuity or remuneration from outside parties?
• Who is defined as an insurance producer?
• Is it permissible to sign blank insurance policies?
• When must an insurance producer maintain full records of business transacted?
• For how long does the NC Rate Bureau bind coverage when a workers' compensation risk is called to their attention?
• What is a "premium" in the context of insurance?
• For how long can someone hold a temporary insurance producer license?
• How can policyholders appeal a claim denial in North Carolina?
• What is the significance of an insurance policy's "deductible"?
• Which of the following is covered by motor vehicle insurance through the facility?
• What is the primary purpose of the Privacy Protection Act in insurance?
• How many prelicensure hours are required for applicants seeking a license in life, health, property, or liability insurance?
• What is the primary obligation of the insurer in a contract of insurance?
• What is the definition of "subrogation" in the insurance context?
• How many Continuing Education Credit Hours (ICECs) must license holders obtain during each two-year period?
• How often does the DMV obtain records of convictions?
• How is a property considered insurable under NCIUA?
• What is the primary purpose of liability insurance?
• How long does an insurer have to provide information after a request is made regarding an adverse underwriting decision?
• After receiving notice of an adverse underwriting decision, how long does an individual have to request additional information?
• When you are an agent, whom do you represent?
• What is the maximum amount of fire insurance that can be issued in North Carolina?
• What is encompassed within property and liability insurance?
• What agency oversees insurance regulations in North Carolina?
• What is the primary role of an insurance company representative?
• Can insurance agents accept rebates or kickbacks?
• What is a primary focus of property and liability insurance?
• Who holds the authority to enforce insurance regulations in North Carolina?
• What criteria must a health insurer meet under North Carolina law when deciding to cancel a policy?
• What is the maximum amount that workers' compensation will pay for the return of unearned premium?
• Which type of insurance policy is exempt from having a contestability period in North Carolina?
• What is the primary role of an insurance agent in North Carolina?
• What is the required notice period for cancellation of liability insurance due to non-payment of premium?
• What must an insurance provider do before canceling a policy in North Carolina?
• What amount of property damage indicates a major accident?
• Which of the following is a qualification under the safe driver plan?
• How are insurance rates for private passenger motor vehicles managed by the bureau?
• What is a factor that prohibits someone from being licensed as an agent?
• The general public has what type of access to the fair plan?
• What notice period is required for the cancellation of liability insurance for reasons other than non-payment?
• What is the purpose of the North Carolina Insurance Guaranty Association?
• What does the NC motor vehicle reinsurance facility primarily offer?
• If a licensed insurance agent moves to a new state, how long do they have to apply for a license in that state?
• Under what circumstances can insurers refuse to renew a policy in North Carolina?
• How is a minor accident defined in the context of insurance?
• What does it mean when an insurance policy is deemed "non-renewable"?
• What constitutes an "insurance policy" according to North Carolina law?
• What authority does the Commissioner of Insurance have in terms of making laws?
• What happens if an individual commits a misdemeanor in regard to insurance regulation?
• What is one common exclusion found in many insurance policies?
• Who is responsible for paying premiums in a life insurance policy?
• What is the standard for determining if an insurance policy is void in North Carolina?
• What is the primary purpose of insurance regulation in North Carolina?
• What constitutes a consumer report in the context of insurance?
• What is one of the qualifications to become an insurance agent?
• Who is the chief officer of the North Carolina Department of Insurance?
• When an insurer changes the coverage or premium rate, they are required to provide written notice within how many days?
• What document outlines the terms and conditions of an insurance policy?
• Which category of insurance is specifically related to coverage for human life?
• Under what condition might an insurance claim be denied?
• At what time does coverage typically bind when a policy is issued?
• What is required for an individual to obtain a resident insurance producer license in North Carolina?
• What must be included in the plan of operation adopted by the NCJUA?
• What is the main requirement for an insurance advertisement in North Carolina?
• Which agency is responsible for regulating insurance in North Carolina?
• What is required for a business entity to obtain an insurance license in North Carolina?
• Whom does a broker represent in an insurance transaction?
• What does the NCJUA provide insurance for?
• What is a Medicare supplement insurance policy designed to do?
• What is "coinsurance" in a health insurance policy?
• Which of the following is NOT one of the three parts of the NC Rate Bureau?
• What is one possible outcome of an adverse underwriting decision?
• What type of property qualifies for coverage under the NC insurance underwriting association?
• Which of the following is a mandatory benefit that must be offered by health insurers in North Carolina?
• What is the legal consequence for a person intending to fraudulently deceive an insurer?
• What does “duty to defend” imply in liability insurance contracts?
• What is the purpose of regulations concerning unfair trade practices in insurance?
• Can health insurance issuers deny coverage for pre-existing conditions after the implementation of the Affordable Care Act?
• What does the NC joint underwriters association (NCJUA) aim to provide?
• What must a person report to the Commissioner of Insurance?
• What is a common requirement for obtaining an insurance license in North Carolina?
• What is a major focus of the NC Rate Bureau when making insurance rate recommendations?
• What is meant by the term "group health insurance"?
• What authority does the Commissioner have regarding examinations?
• What can the Commissioner of Insurance do to enforce insurance laws?
• What is the consequence of failing to provide the required cancellation notice?
• What is the purpose of a risk retention group?
• What does the NC Rate Bureau do to promote fair insurance rates?
• How long does an insurer have to respond to a claim in North Carolina?
• What is the primary function of the North Carolina Department of Insurance's Consumer Assistance Division?
• How many days notice is required for the cancellation of non-liability (physical damage) coverage for any reason?
• What is the minimum aggregate amount in property damage required to classify an incident as an intermediate accident?
• Under what condition can the Commissioner suspend or revoke a license?
• How many days must an insurer provide notice of cancellation for non-renewal?
• What can happen if an insurance producer fails to report violations?
• What is a characteristic of a whole life insurance policy?
• What is the effective date of an insurance policy?
• At what age must an individual be to qualify as an insurance agent?
• Are there limitations on how insurers can use consumer credit information?
• What is a key factor that insurers consider when determining premiums?
• Which type of coverage typically includes protection against injuries to others?
• How is liability assessed in a car accident in North Carolina?
• What action does the governor take if a vacancy occurs in the office of the Commissioner of Insurance?
• Which of the following insurance types does the NC Rate Bureau NOT oversee?
• Can a North Carolina insurance agent charge a fee to clients for services rendered?
• What is the insurer responsible for in a motor vehicle liability policy?
• What obligations does the postassessment insurance guaranty association have regarding claims?
• What is the primary purpose of the North Carolina Insurance Code?
• How often must insurers report their financial status to the NCDOI?
• Which of the following is NOT a reason an insurer can cancel a motor policy?
• What is one requirement for an individual to become a broker?
• What is the purpose of licensure requirements for insurance agents?
• What is an insurance policy's "deductible"?
• Which entity oversees the insurance industry in terms of licensing and regulations?
• What is the consequence for refusing to provide information to the insurance commissioner when requested?
• What does obtaining property by false pretense entail?
• What is the minimum bond requirement for someone to be a broker?
• What does the term ‘lapse’ refer to in the context of insurance?
• How often does the bureau report information on non-fleet private passenger motor vehicles to the commissioner?
• Which regulation applies to credit accident and health insurance?
• How long after an insurer's insolvency can claims arise and still be covered?
• If a licensee changes their residential address, how long do they have to notify the Commissioner?
• If an insurer wants to cancel a policy for any reason other than non-payment, how many days’ notice must they provide?
• Which types of properties is NCJUA most commonly associated with?
• The North Carolina Department of Insurance is responsible for overseeing which of the following?
• What term describes the mixing of client and personal funds?
• What factors cannot be used by an insurer to cancel or refuse a motor insurance policy?
• Can an insurer disclose a client's personal information without consent?
• What does life and health insurance primarily cover?
• Which notice period is the shortest required for policy cancellation?
• Which coverage is mandatory for vehicles registered in North Carolina?
• What does coverage provision mean in an insurance policy?
• When can the Commissioner of Insurance conduct an examination?
• What is the function of the North Carolina Insurance Commissioner?
• What is the main goal of the Fair Access to Insurance Requirements under NCJUA?
• Who is responsible for maintaining the database for license status in the insurance industry?