Chapter 11 NC Statutes and Limitations

Question 1

Contract of Insurance

Answer 1

agreement that binds the insurer to pay money or equivalent or reimbursement for destruction, loss, or injury of something

Question 2

North Carolina Commissioner of Insurance

Answer 2

Heads state department of insurance. responsible for fair rate making , injury prevention efforts, and close regulation of insurance company solvency and industry practices

Question 3

True or False

When licensee is accused of any act, omission, or misconduct subject to suspension they must surrender license for a period of time established by commissioner

Answer 3

True

Question 4

Deceiving an insurer or claimant by knowingly presenting a false statement is a Class__ felony

Answer 4

H

Question 5

It is a class ___ felony to willfully misstate information in any statement required by the commissioner

Answer 5

I

Question 6

Insurers and agents have to maintain a written log of each written complaint … how long must these records be retained

Answer 6

5 years

Question 7

you cannot deal any kind of insurance in NC unless you are licensed for that kind of insurance. Violation would result in a Class ___ Misdemeanor

Answer 7

1

Question 8

Can you accept payment of premium by credit or debit card?

Answer 8

Yes, if the insurer pays the fees charged by the credit card or debit card company

Question 9

If there is a controversy between insurer and the insured who does the agent represent?

Answer 9

The insurer

Question 10

In how many days must a licensee surrender his license after moving out of the state?

Answer 10

30 days

Question 11

Can an agent accept a gratuity for a repair service for recommending their service to a claimant?

Answer 11

NO

Question 12

What must every agent do when conducting business with public

Answer 12

Identify self and occupation
provide national producer #
provide departments web address and phone #

Question 13

The Insurance Information and Privacy Act has been adopted in NC to…

Answer 13

protect personal information of consumer

Question 14

Unfair Trade Practices Include

Answer 14

fraudulent and unethical activities, misrepresentation, false advertisement, twisting, misappropriation of a policy holders money

Question 15

Life Insurance License holders must obtain ____ Insurance Continuing Credits (ICEC’s) during each biennial compliance period.

Life Agents must complete ____ ICEC’s ethics course every biennial compliance period

Answer 15

24

3

Question 16

In NC a Life Insurance Company is….

Answer 16

any corp or association whose business in the state involves payment of money or other thing of value to families or their representatives on condition of continuance or cessation of life.

Question 17

True or False:

All minors in NC age 15 or older have full power and authority to make contracts of insurance.

Answer 17

True

Question 18

True or False:
Life insurance companies may not make any contract with an NC resident that does not distinctly state the amount of benefits payable and the manner of payment

Answer 18

True

Question 19

Viatical Settlement

Answer 19

sale of life insurance policy before the policy matures

typically involve insured people with short life expectancy

Question 20

Department

Answer 20

The department of insurance of NC

Question 21

NAIC

Answer 21

National Association of Insurance Commissioners

Question 22

FINRA

Answer 22

Financial Industry Regulatory Authority

Question 23

Insurance Producer

Answer 23

person required to be licensed to sell, solicit, or negotiate insurance. includes agent, broker, and limited representative

Question 24

Uniform Business Entity Application

Answer 24

current application for resident and non resident business entities

Question 25

Uniform Application

Answer 25

current application for resident and non resident producer licensing