Missed Exam Questions

Question 1

The insured can request the following initial information be added to a property policy issued in North Carolina, except:
Claim surcharge
Property improvement credits
Basis rate
Deficiency charge

Answer 1

Claim surcharge

Upon request from the insured, the basis rate, deficiency charge, property improvement credits, and the rate at which the policy was written must be added to a property policy and provided upon request after any changes to the policy.

Question 2

The principle of _______ requires the insured to transfer its right of recovery against any party causing a loss to the insurer, after it accepts payment from the insurer for a loss. ______ allows the insurer to recover from the third party that caused a loss any amounts paid to an insured. It also prevents the insured from collecting twice for the same loss. It does not allow the insurer to sue the insured.

Answer 2

subrogation

Question 3

A policyholder has a Special Form Dwelling policy. Personal property is valued on an ________ basis

Answer 3

actual cash value

Question 4

The rules and procedures to be followed by the insurer and insured throughout the policy period are found in the _______.

Answer 4

Conditions

Question 5

With a the Homeowners Policy First Aid Expenses ______ apply to the insured or resident of the household.

Answer 5

do not

Question 6

An agent who has adverse administrative action taken against them in another jurisdiction must report the adverse action to the Commissioner within how many days after the final disposition? and convictions must be reported within ___ days of the conviction.

Answer 6

30 days, 10

Question 7

An insured in North Carolina has a mortgage on their home, which is covered by a standard fire policy. If loss is payable to the mortgagee, the mortgagee may submit proof of loss within ___ days of the insured’s failure to furnish it. The insured may submit proof of loss within ___ days after the loss, unless that time is extended by the insurer.

Answer 7

60

Question 8

The Boatowners Policy does not cover which of the following? _______ Property

Answer 8

Personal

Question 9

Physical damage coverage is ____ provided by the Facility.

Answer 9

not

Question 10

The Safe Driver Incentive Plan charges points during the experience period, which is: The experience period is the _-year period preceding either the date an individual applies for coverage or the date the insurer prepares to renew an existing policy.

Answer 10

3

Question 11

Underinsured Motorist coverage only covers ____ injury, not property damage. UIM coverage is required only when Part A of the policy exceeds the minimum required limits of 30/60/25

Answer 11

bodily

Question 12

According to North Carolina’s Insurance Information and Privacy Protection Act, an adverse underwriting decision for an individual insurance policy would include any of the following, except:
Terminating coverage on a specific policy
Policy rescission
Offering to insure at a rate that is higher than standard
An agent declining to make an application with the specific insurer the applicant requested

Answer 12

Policy rescission

Question 13

Construction material having a fire-resistance rating between 1 and 2 hours for walls, floors, and roofs is classified as: _______ Fire-Resistive

Answer 13

Modified

Question 14

Which of the following best describes short-rate cancellation?
The insured will receive none of the unearned premium
The insured will receive exactly half of the unearned premium
The insured will receive less than the full amount of the unearned premium
The premium is fully earned by the insurance company

Answer 14

The insured will receive less than the full amount of the unearned premium

Question 15

Water damage, even water damage that occurs only because of the existence of a fire (the proximate cause), is considered a ____ physical loss to the property. Indirect losses, or consequential losses, are nonphysical losses that emerge because of the direct damage.

Answer 15

direct

Question 16

A binder ____ ____ specify the premium amount. The Declarations of an actual policy would include the premium.

Answer 16

does not

Question 17

The rules and procedures to be followed by the insured and the insurer are found in which section of an insurance policy?

Answer 17

Conditions

Question 18

Losses caused by an explosion or riot are ______ under the standard fire policy. However, if the explosion ignites a fire that causes a loss, that loss will be covered.

Answer 18

not covered

Question 19

The _____ list the general rules and duties in the event of a loss under the policy.

Answer 19

Conditions

Question 20

Which of the following is stated in the Insuring Agreement? The ____ insured against

Answer 20

perils

Question 21

Which of the following is stated in the Insuring Agreement? The ____ insured against

Answer 21

perils

Question 22

Additional Coverages are automatically included without an ______ ______.

Answer 22

additional premium

Question 23

the Insuring Agreement is the ______ to indemnify an insured for a covered cause of loss

Answer 23

promise

Question 24

The loss of property when the cause of loss is not known is considered:

Answer 24

mysterious disappearance

Question 25

All of the following perils are covered by the DP-1 with Extended Coverage, except:
Windstorm
Vehicles
Falling objects
Volcanic eruption

Answer 25

Falling objects

Question 26

Which Dwelling form does not cover losses resulting from frozen plumbing?
None of the Dwelling policies cover frozen systems or appliances
Broad Form
Special Form
Basic Form

Answer 26

Basic Form - Freezing of plumbing systems or household appliances is covered only in the Broad Form (DP-2) and Special Form (DP-3).

Question 27

The Limited Theft Coverage Endorsement must be used if the dwelling is _____ _____. No VMM coverage applies if the dwelling was vacant for more than 60 consecutive days immediately before the loss. There is no off-premises coverage under this endorsement.

Answer 27

tenant occupied

Question 28

Under which Dwelling form is the Coverage B limit included in the overall policy limit represented by Coverage A? DP-__

Answer 28

DP-1

Question 29

Under a Broad Form Dwelling policy (DP-2), which peril is not included for coverage without an endorsement?

Answer 29

Theft coverage for the DP-2 is available only through attachment of the Limited Theft Endorsement or the Broad Theft Endorsement.

Question 30

Damaged household and personal property in transit between the insured’s old and new residences is covered by the DP-1 for up to: 10% of the Coverage __ limit of insurance to apply to personal property while it is away from the premises.

Answer 30

C

Question 31

Damage from power failure that takes place away from the insured premises is _____ under the Dwelling forms.

Answer 31

excluded

Question 32

If an insurer nonrenews Part D of an insured’s Personal Auto Policy, what is the minimum number of days’ notice that must be provided to the insured?

Answer 32

10

Question 33

_______ payments are provided for particular expenses related to the defense provided by the insurer under the Part A Insuring Agreement. Expenses covered as supplementary payments include up to $250 for the cost of bail bonds, premiums on appeal bonds, interest accrued after a judgment is rendered, and up to $200 a day for the insured’s loss of income due to trial or hearing attendance

Answer 33

Supplementary

Question 34

Coverage C on the HO-3 would cover which of the following losses? ______ loss to property the insured borrows from a neighbor

Answer 34

Vandalism

Question 35

Coverage through the Facility may be terminated if the named insured is an _____ _______. A nonresident with a vehicle principally garaged in North Carolina is still eligible for coverage, so coverage may not be terminated on the basis of the insured’s nonresident status.

Answer 35

ineligible nonresident

Question 36

An insured who has coverage under the NFIP with a $1,000 deductible for the dwelling and contents sustains flood damage to both their home and personal property. What is the maximum the insured will have to pay for damages assuming the loss is under the policy limits?

Answer 36

The deductible applies separately for the dwelling and the contents, so the insured is responsible for $2,000 in deductibles.

Question 37

An insurer must provide claim forms to a claimant within _____ days of receiving notice of loss.

Answer 37

15

Question 38

Though fire loss is covered under Comprehensive coverage, normally subject to a deductible, losses due to fire, lightning, certain circumstances involving smoke, and damage while being transported in a conveyance are ___ _____ to any deductible.

Answer 38

not subject

Question 39

No notice is required if a privacy information notice has been provided to the insured within the previous ___ months.

Answer 39

24

Question 40

The Insuring Agreement of Part ___ states that the insurer will pay for loss to the covered auto, including its equipment, minus any applicable deductible.

Answer 40

D

Question 41

An auto insurer discovers that B made a material misrepresentation regarding the driving record of one of B’s children, who is an insured on B’s Personal Auto Policy. To cancel Liability coverage, the insurer must provide notice at least how many days in advance of cancellation?

Answer 41

60