6 - Regulations Specific to Casualty

Question 1

Failure to comply with the North Carolina Workers’ Compensation Act can subject an employer to a minimum fine of _____ per day.

Answer 1

-$50

Question 2

The North Carolina Rate Bureau (NCRB) considers rates for Workers’ Compensation insurance losses for a period of the past _______.

Answer 2

-3 years

Question 3

J has a claim from an injury on his job. His employer carries a Workers’ Compensation policy. Unfortunately the employer has just learned that his insurer is insolvent and cannot pay the claim. How much of the claim will be paid by the North Carolina Post Assessment Insurance Guaranty Association?

Answer 3

-100% of the claim

Question 4

Insurers may cancel Liability, Medical Payments, and Uninsured Motorists or Underinsured Motorists during the policy period due to NON-PAYMENT of premium if they have given ________notice prior to cancellation.

Answer 4

-15 days

Question 5

Which of the following Ag employers would be required to purchase Workers’ Compensation insurance?

Answer 5

-Ag Employers w/ more than 10 employees

Question 6

If an insurer wishes to cancel collision coverage on the PAP, the company must give the insured how much notice?

Answer 6

-10 days

Question 7

All of the following are benefits required by Workers’ Compensation laws EXCEPT:

a. Wage replacement
b. medical costs
c. unemployment benefits
d. disability benefits

Answer 7

-c. unemployment benefits

Question 8

In North Carolina, Workers’ Compensation insurance may be sold or arranged by all of the following EXCEPT:

a. an insurance company
b. an employer
c. a self-employed fund
d. a trust

Answer 8

-d. a trust

Question 9

New policy forms from the North Carolina Rate Bureau (NCRB) must be submitted to the Commissioner for approval before they may be used. If the Commissioner does not disapprove the form within _________, the new policy form may be used.

Answer 9

-90 days

Question 10

The North Carolina Commissioner of Insurance may deny a request for a rate increase within how many days after the rate filing?

Answer 10

-50 days unless for Workers’ Comp., then 60 days is allowed

Question 11

What percentage of insurance companies writing automobile insurance must participate in the North Carolina Motor Vehicle Reinsurance Facility?

Answer 11

-100%

Question 12

The Commissioner may give notice to the North Carolina Rate Bureau (NCRB) within ______________of the filing of workers compensation insurance rates if the Commissioner deems the rates are not within the regulations of the State.

Answer 12

-60 days

Question 13

An “At-fault Intermediate Accident” as defined by the Safe Driver Incentive Plan (SDIP) is an accident with the following losses:

Answer 13

-property damage of more than $1,850 but less than $3,085

Question 14

When a vehicle is insured through the North Carolina Motor Vehicle Reinsurance Facility (Facility) the business is referred to as placed in the ___________.

Answer 14

-Involuntary Market

Question 15

The North Carolina Rate Bureau (NCRB) sets rates for all of the following EXCEPT:

a. Residential Property
b. Auto Insurance
c. Workers’ Comp
d. Commercial Property

Answer 15

-d. Commercial Property

Question 16

What is the minimum amount that the North Carolina Post Assessment Guaranty Association will pay on any claim?

Answer 16

-$50

Question 17

The North Carolina Motor Vehicle Reinsurance Facility can provide which of the following maximum auto liability coverage amounts?

Answer 17

-250/500/100

Question 18

Which of the following is mandatory coverage in the personal auto policy?

Answer 18

-Liability

Question 19

Which of the following risks would not be covered by the North Carolina Post Assessment Guaranty Association?

a. Workers’ Comp Insurance
b. Surety Bond
c. Automobile Insurance
d. Homeowners Insurance

Answer 19

-Surety Bond

Question 20

In NC, the auto policy split limits must be at least:

Answer 20

-30/65/25

Question 21

When business is written through he NC Motor Vehicle Reinsurance Facility, it is referred to as having been ______.

Answer 21

-Ceded

Question 22

The North Carolina Rate Bureau (NCRB) will cover residential property that contains no more than _____ units

Answer 22

-4

Question 23

If the NC Commissioner initial denies a request for a rate increase filed by the NCRB, he or she must hold a hearing on the rate request within how many days?

Answer 23

-30 days

Question 24

If an insurance company wishes to cancel an auto policy for a reason other than nonpayment of premiums, a notice of the intent to cancel the policy must be provided to the insured at least how many days before the effective date of cancellation?

Answer 24

-60 days