Lesson 11: NC Statutes &
Regulations Pertinent to Life
Insurance Exam Questions and
Answers 100% PASS
Contract of Insurance—ANSWER---Agreement by which the insurer is bound to pay money
or its equivalent, or do some act of value to the insured upon and as an indemnity or
reimbursement for the destruction, loss, or injury of something in which the party has an
interest.
Commissioner—ANSWER---Commissioner of Insurance of NC or authorized designee
-Heads state Department of Insurance
-Responsible for fair ratemaking, injury prevention efforts, and close regulation of insurance
solvency and industry practices.
Department—ANSWER---Department of Insurance of NC
NAIC—ANSWER---National Association of Insurance Commissioners
Person—ANSWER---individual, partnership, firm, association, corporation, joint-stock
company, trust, any similar entity, or combination acting together.
, Commissioner's Election and Term of Office—ANSWER----Elected by the people; same as
General Assembly and State officers.
-Term begins January 1st after they are elected and is 4 years or until someone else is
elected.
-Governor fills in any vacancy in an unexpired term.
Powers and Duties of Commissioner—ANSWER----prescribe the necessary forms and
financial statements to entities as described in Chapter 58.
-report any violations of the law by insurance companies to the Attorney General
-give synopsis of any insurance contract offered to citizens
-administer oaths required in the discharge of Commissioner's official duty.
-compile and make available list of rates charged and explanation of coverage for: Insurance
against loss to residential real property and Private passenger (nonfleet) motor vehicle
-administer and enforce provisions of Patient Protection and Affordable Care Act and the
provisions of the Health Care and Education Reconciliation Act of 2010.
Examination, Hearings, and Investigations—ANSWER----examinations, hearings, and
investigations may be conducted by the Commissioner personally.
-Commissioner may arrest with warrant or have person arrested if there is evidence of
criminal activity.
-All hearings must be held in ordinance with NC General Statutes and be at a time/place
designated in a written notice by the Commissioner and given to the person cited.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
Regulations Pertinent to Life
Insurance Exam Questions and
Answers 100% PASS
Contract of Insurance—ANSWER---Agreement by which the insurer is bound to pay money
or its equivalent, or do some act of value to the insured upon and as an indemnity or
reimbursement for the destruction, loss, or injury of something in which the party has an
interest.
Commissioner—ANSWER---Commissioner of Insurance of NC or authorized designee
-Heads state Department of Insurance
-Responsible for fair ratemaking, injury prevention efforts, and close regulation of insurance
solvency and industry practices.
Department—ANSWER---Department of Insurance of NC
NAIC—ANSWER---National Association of Insurance Commissioners
Person—ANSWER---individual, partnership, firm, association, corporation, joint-stock
company, trust, any similar entity, or combination acting together.
, Commissioner's Election and Term of Office—ANSWER----Elected by the people; same as
General Assembly and State officers.
-Term begins January 1st after they are elected and is 4 years or until someone else is
elected.
-Governor fills in any vacancy in an unexpired term.
Powers and Duties of Commissioner—ANSWER----prescribe the necessary forms and
financial statements to entities as described in Chapter 58.
-report any violations of the law by insurance companies to the Attorney General
-give synopsis of any insurance contract offered to citizens
-administer oaths required in the discharge of Commissioner's official duty.
-compile and make available list of rates charged and explanation of coverage for: Insurance
against loss to residential real property and Private passenger (nonfleet) motor vehicle
-administer and enforce provisions of Patient Protection and Affordable Care Act and the
provisions of the Health Care and Education Reconciliation Act of 2010.
Examination, Hearings, and Investigations—ANSWER----examinations, hearings, and
investigations may be conducted by the Commissioner personally.
-Commissioner may arrest with warrant or have person arrested if there is evidence of
criminal activity.
-All hearings must be held in ordinance with NC General Statutes and be at a time/place
designated in a written notice by the Commissioner and given to the person cited.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
