NC Accident and Health or Sickness Exam Prep (Group 1)Questions and Answers
Beatrice is a member of the Supreme Lodge fraternal benefit society. What must Beatrice do before she can sell insurance on its behalf? - Answer- comply with the same general licensing requirements that apply to resident agents
An agent's apparent authority is defined by: - Answer- the customer's perceptions
Emily solicits policies and accepts premiums from the public but is not licensed as an agent. She then turns over the applications and premiums to her husband, who is licensed. Which statement is correct? - Answer- Emily has committed a Class 1 misdemeanor.
Which of the following is NOT an unfair claims settlement practice if committed by an insurance company in North Carolina? - Answer- failing to promptly settle a claim for which liability is uncertain
In an insurance transaction, what does the applicant give to the insurer as consideration
in exchange for the insurer's promise to cover the risk? - Answer- initial premium
Because they are aleatory contracts, insurance policies: - Answer- often award disproportionately large benefits due to chance events
Abby lives in Maryland, where she is licensed as an insurance agent. She wants to apply for a nonresident license in North Carolina. Which of the following conditions must
she satisfy? - Answer- She must show her license to be in good standing in Maryland.
Agent Smith knows that his best friend, Agent Thomas, is embezzling money from clients. However, Agent Smith does not notify the Commissioner in order to protect his friend. What is the result? - Answer- Agent Smith's license will be revoked.
When collecting personal financial or health information, an insurance company is required to do all of the following EXCEPT - Answer- provide individuals with copies of documents disclosed to other parties.
Which of the following presents a situation of pure risk? - Answer- Knowing that his family depends on his income, Franklin wants to insure his life.
Why would a business self-insure instead of buying an insurance policy? - Answer- to insure against frequent low-severity losses
Beatrice is a member of the Supreme Lodge fraternal benefit society. What must Beatrice do before she can sell insurance on its behalf? - Answer- comply with the same general licensing requirements that apply to resident agents
An agent's apparent authority is defined by: - Answer- the customer's perceptions
Emily solicits policies and accepts premiums from the public but is not licensed as an agent. She then turns over the applications and premiums to her husband, who is licensed. Which statement is correct? - Answer- Emily has committed a Class 1 misdemeanor.
Which of the following is NOT an unfair claims settlement practice if committed by an insurance company in North Carolina? - Answer- failing to promptly settle a claim for which liability is uncertain
In an insurance transaction, what does the applicant give to the insurer as consideration
in exchange for the insurer's promise to cover the risk? - Answer- initial premium
Because they are aleatory contracts, insurance policies: - Answer- often award disproportionately large benefits due to chance events
Abby lives in Maryland, where she is licensed as an insurance agent. She wants to apply for a nonresident license in North Carolina. Which of the following conditions must
she satisfy? - Answer- She must show her license to be in good standing in Maryland.
Agent Smith knows that his best friend, Agent Thomas, is embezzling money from clients. However, Agent Smith does not notify the Commissioner in order to protect his friend. What is the result? - Answer- Agent Smith's license will be revoked.
When collecting personal financial or health information, an insurance company is required to do all of the following EXCEPT - Answer- provide individuals with copies of documents disclosed to other parties.
Which of the following presents a situation of pure risk? - Answer- Knowing that his family depends on his income, Franklin wants to insure his life.
Why would a business self-insure instead of buying an insurance policy? - Answer- to insure against frequent low-severity losses
