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Life > NC Statues & Regulations Pertinent to Life > Flashcards

NC Statues & Regulations Pertinent to Life Flashcards

1
Q

Which of the following would not have to comply with the Insurance Information and Privacy Protection Act?

A

The insurance regulators

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2
Q

If an agent offers to give the prospect part of the commission as an incentive to buy the policy, the agent is engaging in an illegal act known as

A

rebating

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3
Q

If the insurance company is going to use information from public records, such as DMV records, when must the Notice of Information Practices be provided by the prospect?

A

No later than the delivery of the policy

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4
Q

How many days does a person have to request the reason for an adverse underwriting decision

A

90 business days

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5
Q

The commissioner of insurance

A

approves insurance rates

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6
Q

If an individual sends in a written request concerning disputed information, how long does the insurance company have to report their findings to him/her

A

30 business days

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7
Q

An insurance company can base rates on all of the following except

A

race

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8
Q

The insurer cannot refuse to issue or charge a higher premium in which of the following circumstances?

A

A person who possesses the sickle cell anemia

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9
Q

All statements in the application and the policy are deemed to be

A

representations

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10
Q

Which of the following actions could be completed without an insurance agent’s license

A

accepting premiums and or applications

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11
Q

Under the Insurance Information and Privacy Protection Act when must a prospect be notified that information will be obtained from nonpublic records

A

at the time the information is gathered

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12
Q

Which of the following statements is not true regarding adverse underwriting decisions

A

the insurer can base an adverse underwriting decision solely on the basis of a previous adverse underwriting decision

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13
Q

If the company issues a policy based on an incomplete application, and the insured suffers a loss after the policy goes into effect, the company

A

is obligated to pay full benefits

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14
Q

An insurance company whose home office is located in NC could be referred as

A

domestic

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15
Q

Any change of residency within the state must be reported to the Department of Insurance within how many days10

A

10

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16
Q

At what time would an insured most likely be given information concerning his/her rights under the Insurance Information and Privacy Protection Act

A

When the company makes an adverse determination

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17
Q

The commissioner’s powers include all of the following except

A

Enacting laws

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18
Q

Untrue statements about a competitor or his/her company is called

A

rebating

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19
Q

The Insurance Information and Privacy Act

A

Sets up procedures for consumer reporting agency

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20
Q

If an agent uses illegal tactics to persuade a prospect to drop existing insurance, then he is guilty of

A

twisting

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21
Q

If the commissioner of insurance is unable to fulfill his/her term, then who appoints someone to take his place

A

the governor

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22
Q

All of the following are examples of unfair practices except

A

furnishing required disclosure information

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23
Q

Instead of turning in premium collection for a given week, an agent uses the money to pay a few personal bills. This would be an example of

A

embezzlement/larceny

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24
Q

The commissioner of insurance is elected by the people of NC for a term of

A

4 years

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25
Q

An agent could be personally liable for doing which of the following

A

representing an unauthorized company

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26
Q

Which of the following is not a requirement to be licensed in NC

A

being a high school graduate

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27
Q

An individual hides known material facts, leading an insurance company to make a different underwriting decision than they would have had had they know the truth. This is called

A

Concealment

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28
Q

Who is protected under the Fair Credit Reporting Act

A

The consumer

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29
Q

A disclosure authorization form is valid for a maximum of _____________months

A

30

30
Q

Under the Fair Credit Reporting Act, the applicant does not have which of the following rights

A

the right to sue companies for adverse decisions

31
Q

What is the purpose of the Insurance Information and Privacy Protection Act

A

To establish standards for the collection, use and disclosure of information gathered in connection with insurance transactions by insurance institutions and insurance support organizations, and agent

32
Q

The commissioner may do all of the following except

A

change state insurance laws at will for the good of the general public

33
Q

When a company becomes aware that an agent is guilty of embezzlement, they must file the commissioner a completer statement of the facts within

A

30 day

34
Q

The minimum age for an individual to be licensed is

A

18

35
Q

A temporary license may be issued for a maximum of ___________days

A

180

36
Q

The continuing education (CE) requirements include __________ credit hours completed buiennially (every 2 years)

A

24

37
Q

Whom does the agent represent

A

the seller

38
Q

A replacement notice must be sent to the existing company within

A

5 working days

39
Q

If an agent is allowed to represent one company and one company only, he/she is referred to as a

A

captive(exclusive) agent

40
Q

An agent may all him/herself a financial planner or investment advisor if

A

the source of the compensation is stated

41
Q

The broker represents the

A

policyholder

42
Q

An agent cannot use the terms “financial planner” or “investment advisor” unless

A

he/she has obtained the proper credentials

43
Q

A Hearing Order issued by the commissioner requires advance notice of at least _____________ days

A

10

44
Q

Which of the following is not true regarding the general rules of life insurance solicitations

A

Cost indexes are only useful in comparing the relative costs of two or more policies from the same company

45
Q

Replacing life insurance policies are required to provide a free-look period of

A

30 days

46
Q

Efforts by an insurance company to keep their policyholders from dropping insurance to buy from another company are called

A

conservation

47
Q

In NC, a minor over the age of ________ may make contracts of insurance

A

15

48
Q

Existing insurance that is dropped in order to purchase a new insurance is known as

A

replacement

49
Q

An attempt by an existing insurer to dissuade a policy owner from replacing an existing life insurance policy is called

A

conservation

50
Q

Failing to deliver a policy summary when required is considered

A

misrepresentations

51
Q

If a replacement is, in fact, taking place, when must the agent have the applicant sign a Notice Regarding Replacement Form

A

At the time of the application

52
Q

NC Life’s Insurance Replacement Regulation applies to

A

Whole Life Insurance

53
Q

When a life insurance policy is delivered, what must be given to the insured

A

Buyers’ Guide and Policy Summary

54
Q

Which of the following statements is correct regarding the use of the term “financial Planner”

A

The agent cannont represent him or herself as one unless he / she is properly qualified

55
Q

The purpose of the replacement laws is

A

to protect the interests of life insurance purchasers by establishing minimum standards of conduct

56
Q

Which of the following would not constitute a replacement

A

converting term insurance in the same company

57
Q

When is the delivery of a policy summary not required

A

if the policy has an equivalent level death benefit of 5,000 or less

58
Q

When does an agent have to inform someone that certain questions being asked are solely for marketing or research purposes

A

Any time he/she sells insurance

59
Q

An agent’s insurance license should

A

be carried with you

60
Q

What do you call someone who is licensed to sell only credit life, travel accident or dental insurance

A

a limited representative

61
Q

The Guaranty Association protects the policyholder of companies that become insolvent. The money used to bail out an insolvent company comes from

A

the member insurers(Companies)

61
Q

A prearrangement (funeral) insurance policy is being purchased. All of the following must be disclosed at the time of application and prior to the acceptance of the initial premium, except which

A

how much the policy is actually costing the funeral home and their profits from the sale

62
Q

The Guaranty Association provides protection for all of the following except

A

fraternals

63
Q

Using the existence of the Guaranty Association as an aid to the sale of insurance is

A

prohibited

64
Q

What is the purpose of the Guaranty Association

A

to protect the insured against an insurer’s failure to perform its contractual duties

65
Q

Which of the following would be covered by the Guaranty Association

A

A supplemental policy, such as a hospital indemnity

66
Q

All of the following are covered under the Guaranty Association except

A

group dental insurance

67
Q

A contract whereby immediate cash is given in exchange for the transfer of a life insurance policy is called a

A

viatical

68
Q

An insurance company whose home office is in another state would be called

A

foreign

69
Q

Appointments are renewed by the NC Department of Insurance how often

A

Annually

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