NC PC Exam Questions With
Accurate Answers
A person who willingly and knowingly made submitted several fraudulent claims
over the past several years is subject to which of the following penalties? =
correct answer Treble damages
A violation of the Privacy Protection Act is punishable by all of the following,
except: correct answer 100k fine
Absolute Windstorm or Hail Coverage (HO 32-94) correct answer his endorsement
can be used for all HO forms, and it deletes the windstorm or hail exclusion
Acting without a License correct answer Any person acting as or pretending to be
a principal, agent, broker, limited representative, adjuster, or licensed motor
vehicle damage appraiser by soliciting, investigating, or examining risks or
collecting premiums will be deemed guilty of a Class 1 Misdemeanor.
Activities by Lenders and Temporary Contracts correct answer A lender is not
prohibited from refusing to accept a binder as long as the refusal is reasonable. To
be acceptable, the binder must include:
The name and address of the insured
The name and address of the mortgagee
A description of the insured collateral
A provision that it may not be cancelled within a term of the binder except with
10 days' written notice to the mortgagee
The amount of insurance bound
,The binder must be accompanied by a paid receipt for one year's premium,
except in the case of a policy renewal subsequent to the closing of a loan. The
binder must also include an undertaking of the agent to use their best efforts to
have the insurance company issue a policy.
ACV (Actual Cash Value) correct answer cost to repair or replace MINUS
depreciation
Adjuster correct answer An adjuster is an individual who, for a salary, fee,
commission, or other compensation, investigates or reports to their principal with
respect to claims arising under contracts other than life or annuities. An attorney
who occasionally adjusts losses incidental to their profession or an adjuster of
marine losses are not considered adjusters within the intent of the law.
Adverse Underwriting Decisions correct answer The applicant has 90 days to
request reasons for the adverse underwriting decision and the response must be
made within 21 days of being received.
Agent correct answer An agent is a person licensed to solicit applications for or to
negotiate a policy of insurance on behalf of an insurer. A person not duly licensed
who solicits or negotiates a policy on behalf of an insurer is an agent within the
intent of the law and becomes personally liable for all the duties, requirements,
liabilities, and penalties to which an agent is subject. A company that
compensates a person for soliciting insurance policies accepts and acknowledges
the person as its agent in the transaction.
Agent R holds a North Carolina nonresident insurance license when they move to
North Carolina. To continue being licensed, R must apply for resident licensure
within- correct answer 90 days
,Appointment correct answer To appoint a licensed individual as its agent, the
appointing insurer must file a notice of appointment within 15 days after the first
insurance application is submitted, and must pay the appointment fees as
required by the Commissioner. The insurer must submit a renewal fee for each
appointed agent by line of insurance prior to April 1 of each year.
are Additional coverages added to the policy for an additional premium? correct
answer yes
Assignment correct answer The insured may not transfer ownership of the policy
without the insurer's written permission
Bailee correct answer Owner of something
Bailer correct answer Servicer= clothes, cars, etc
BAP Sections correct answer Section 1- owned autos
Section 2- coverage
Section 3- garage keepers (Autos in the care, custody, and control (servicing,
repair, parking, storing)
Beach Area correct answer Beach Area - Commonly called the Outer Banks, the
area of North Carolina from south and east of the inland waterway, from the
South Carolina line to Fort Macon (Beaufort Inlet), to south and east of Core,
Pamlico, Roanoke, and Currituck sounds to the Virginia state line.
Coastal Area - Except for any area defined as beach area, all of the following
counties:
Craven county
, Jones county
Every county (except Bertie county) that borders the ocean
Blank Policies correct answer An agent or limited representative who signs a blank
contract or insurance policy is guilty of a Class 3 misdemeanor and upon
conviction will be punished by a fine of $1,000 - $5,000.
Blanket limit correct answer Insures property located at more than one location
OR more than one type of property at the same location OR both.
Bodily injury correct answer death, illness, loss of earnings
BOP
does section 2 cover medical payments to volunteer workers correct answer
DOES NOT exclude medical payments to volunteer workers, only to paid
employees. (Workers comp)
BOP
Mechanical breakdown- optional coverage correct answer Mechanical breakdown
is AN optional coverage and IS NOT automatically covered
BOP
Restoration period correct answer It begins 72 hours after the time of the direct
physical loss and ends when repairs are completed or when business resumes at a
new physical location
BOP
Accurate Answers
A person who willingly and knowingly made submitted several fraudulent claims
over the past several years is subject to which of the following penalties? =
correct answer Treble damages
A violation of the Privacy Protection Act is punishable by all of the following,
except: correct answer 100k fine
Absolute Windstorm or Hail Coverage (HO 32-94) correct answer his endorsement
can be used for all HO forms, and it deletes the windstorm or hail exclusion
Acting without a License correct answer Any person acting as or pretending to be
a principal, agent, broker, limited representative, adjuster, or licensed motor
vehicle damage appraiser by soliciting, investigating, or examining risks or
collecting premiums will be deemed guilty of a Class 1 Misdemeanor.
Activities by Lenders and Temporary Contracts correct answer A lender is not
prohibited from refusing to accept a binder as long as the refusal is reasonable. To
be acceptable, the binder must include:
The name and address of the insured
The name and address of the mortgagee
A description of the insured collateral
A provision that it may not be cancelled within a term of the binder except with
10 days' written notice to the mortgagee
The amount of insurance bound
,The binder must be accompanied by a paid receipt for one year's premium,
except in the case of a policy renewal subsequent to the closing of a loan. The
binder must also include an undertaking of the agent to use their best efforts to
have the insurance company issue a policy.
ACV (Actual Cash Value) correct answer cost to repair or replace MINUS
depreciation
Adjuster correct answer An adjuster is an individual who, for a salary, fee,
commission, or other compensation, investigates or reports to their principal with
respect to claims arising under contracts other than life or annuities. An attorney
who occasionally adjusts losses incidental to their profession or an adjuster of
marine losses are not considered adjusters within the intent of the law.
Adverse Underwriting Decisions correct answer The applicant has 90 days to
request reasons for the adverse underwriting decision and the response must be
made within 21 days of being received.
Agent correct answer An agent is a person licensed to solicit applications for or to
negotiate a policy of insurance on behalf of an insurer. A person not duly licensed
who solicits or negotiates a policy on behalf of an insurer is an agent within the
intent of the law and becomes personally liable for all the duties, requirements,
liabilities, and penalties to which an agent is subject. A company that
compensates a person for soliciting insurance policies accepts and acknowledges
the person as its agent in the transaction.
Agent R holds a North Carolina nonresident insurance license when they move to
North Carolina. To continue being licensed, R must apply for resident licensure
within- correct answer 90 days
,Appointment correct answer To appoint a licensed individual as its agent, the
appointing insurer must file a notice of appointment within 15 days after the first
insurance application is submitted, and must pay the appointment fees as
required by the Commissioner. The insurer must submit a renewal fee for each
appointed agent by line of insurance prior to April 1 of each year.
are Additional coverages added to the policy for an additional premium? correct
answer yes
Assignment correct answer The insured may not transfer ownership of the policy
without the insurer's written permission
Bailee correct answer Owner of something
Bailer correct answer Servicer= clothes, cars, etc
BAP Sections correct answer Section 1- owned autos
Section 2- coverage
Section 3- garage keepers (Autos in the care, custody, and control (servicing,
repair, parking, storing)
Beach Area correct answer Beach Area - Commonly called the Outer Banks, the
area of North Carolina from south and east of the inland waterway, from the
South Carolina line to Fort Macon (Beaufort Inlet), to south and east of Core,
Pamlico, Roanoke, and Currituck sounds to the Virginia state line.
Coastal Area - Except for any area defined as beach area, all of the following
counties:
Craven county
, Jones county
Every county (except Bertie county) that borders the ocean
Blank Policies correct answer An agent or limited representative who signs a blank
contract or insurance policy is guilty of a Class 3 misdemeanor and upon
conviction will be punished by a fine of $1,000 - $5,000.
Blanket limit correct answer Insures property located at more than one location
OR more than one type of property at the same location OR both.
Bodily injury correct answer death, illness, loss of earnings
BOP
does section 2 cover medical payments to volunteer workers correct answer
DOES NOT exclude medical payments to volunteer workers, only to paid
employees. (Workers comp)
BOP
Mechanical breakdown- optional coverage correct answer Mechanical breakdown
is AN optional coverage and IS NOT automatically covered
BOP
Restoration period correct answer It begins 72 hours after the time of the direct
physical loss and ends when repairs are completed or when business resumes at a
new physical location
BOP
