NORTH CAROLINA INSURANCE
LICENSE EXAM WITH VERIFIED
ANSWER
When a company is licensed in a state, it is considered.. - >THE:CORRECT ANSWER -
admitted
A fiduciary is a - >THE:CORRECT ANSWER -person in a position of financial trust
Which of the following levels of agent authority is a written agreement with the issuer? -
>THE:CORRECT ANSWER -express authority
What is a "physical" hazard? - >THE:CORRECT ANSWER -wet floor, fallen down tree, ice on
sidewalk
What is a "morale" hazard? - >THE:CORRECT ANSWER -carelessness
What is a "moral" hazard? - >THE:CORRECT ANSWER -dishonesty
Who sells insurance products for several companies? - >THE:CORRECT ANSWER -
independent agents
Who sells insurance products for only one company? - >THE:CORRECT ANSWER -captive
agents
,Agents represent the.. - >THE:CORRECT ANSWER -insurer
Brokers/consultants represent the.. - >THE:CORRECT ANSWER -insured
What does CANHAM stand for? - >THE:CORRECT ANSWER -Calculable
Affordable
Non-catastrophic
Homogeneous
Accidental
Measurable
What risk management method do insurance companies use? - >THE:CORRECT ANSWER -
transfer
At the state level, the government is involved in providing.. - >THE:CORRECT ANSWER -
unemployment insurance
At the federal level, the government is involved in providing.. - >THE:CORRECT ANSWER -
flood, war risk, federal crop, and nuclear energy liability insurance
Insurance is a contract that.. - >THE:CORRECT ANSWER -transfers the risk of financial loss
from an individual or business to an insurance company
Direct response marketing includes.. - >THE:CORRECT ANSWER -mail, newspapers,
magazines, TV, and the internet (No producer agent)
, The first party of an insurance contract is.. - >THE:CORRECT ANSWER -insured
The second party of an insurance contract is.. - >THE:CORRECT ANSWER -insurer
Surplus lines insurance is placed with a.. - >THE:CORRECT ANSWER -non admitted carrier
by a surplus lines agent
What is the cause of a loss - >THE:CORRECT ANSWER -peril
Changes in an insurance application must be initiated by.. - >THE:CORRECT ANSWER -the
applicant
The USA PATRIOT ACT is designed to.. - >THE:CORRECT ANSWER -prevent, detect, and
prosecute international money laundering and financing of terrorism
Who pays for medical exams and any tests that are required during the underwriting
process? - >THE:CORRECT ANSWER -The insurer
Part one of the application includes.. - >THE:CORRECT ANSWER -all general and personal
data about the insured
Most state laws allow life insurance applications to be backdated up to.. - >THE:CORRECT
ANSWER -6 months
A producers report will be signed by.. - >THE:CORRECT ANSWER -ONLY the producer
LICENSE EXAM WITH VERIFIED
ANSWER
When a company is licensed in a state, it is considered.. - >THE:CORRECT ANSWER -
admitted
A fiduciary is a - >THE:CORRECT ANSWER -person in a position of financial trust
Which of the following levels of agent authority is a written agreement with the issuer? -
>THE:CORRECT ANSWER -express authority
What is a "physical" hazard? - >THE:CORRECT ANSWER -wet floor, fallen down tree, ice on
sidewalk
What is a "morale" hazard? - >THE:CORRECT ANSWER -carelessness
What is a "moral" hazard? - >THE:CORRECT ANSWER -dishonesty
Who sells insurance products for several companies? - >THE:CORRECT ANSWER -
independent agents
Who sells insurance products for only one company? - >THE:CORRECT ANSWER -captive
agents
,Agents represent the.. - >THE:CORRECT ANSWER -insurer
Brokers/consultants represent the.. - >THE:CORRECT ANSWER -insured
What does CANHAM stand for? - >THE:CORRECT ANSWER -Calculable
Affordable
Non-catastrophic
Homogeneous
Accidental
Measurable
What risk management method do insurance companies use? - >THE:CORRECT ANSWER -
transfer
At the state level, the government is involved in providing.. - >THE:CORRECT ANSWER -
unemployment insurance
At the federal level, the government is involved in providing.. - >THE:CORRECT ANSWER -
flood, war risk, federal crop, and nuclear energy liability insurance
Insurance is a contract that.. - >THE:CORRECT ANSWER -transfers the risk of financial loss
from an individual or business to an insurance company
Direct response marketing includes.. - >THE:CORRECT ANSWER -mail, newspapers,
magazines, TV, and the internet (No producer agent)
, The first party of an insurance contract is.. - >THE:CORRECT ANSWER -insured
The second party of an insurance contract is.. - >THE:CORRECT ANSWER -insurer
Surplus lines insurance is placed with a.. - >THE:CORRECT ANSWER -non admitted carrier
by a surplus lines agent
What is the cause of a loss - >THE:CORRECT ANSWER -peril
Changes in an insurance application must be initiated by.. - >THE:CORRECT ANSWER -the
applicant
The USA PATRIOT ACT is designed to.. - >THE:CORRECT ANSWER -prevent, detect, and
prosecute international money laundering and financing of terrorism
Who pays for medical exams and any tests that are required during the underwriting
process? - >THE:CORRECT ANSWER -The insurer
Part one of the application includes.. - >THE:CORRECT ANSWER -all general and personal
data about the insured
Most state laws allow life insurance applications to be backdated up to.. - >THE:CORRECT
ANSWER -6 months
A producers report will be signed by.. - >THE:CORRECT ANSWER -ONLY the producer
