PERSONAL LINES LATEST 2026 PRACTICE EXAM
QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔SDIP-safe driver incentive plan - ✔✔established to differentiate between safe drivers
and those with records of at fault accidents and major or minor moving traffic violation
convictions
✔✔In North Carolina a Commissioner serves a term for how many years? - ✔✔4 year
term
✔✔An insurance company cannot pay a commission to a person for selling soliciting or
negotiating insurance in North Carolina if - ✔✔That person does not hold a required
license
✔✔What is the continuing education requirement in Ethics for agents in this state? -
✔✔3 hours every two years
✔✔Agents must complete how many hours of CE(continuing education) every year -
✔✔24 hours
✔✔A banker is ready to close on a customers loan. The bank is prepared to offer the
loan but only if the customer purchases a life insurance policy from the bank in the
amount of the loan. This is an example of - ✔✔coercion
✔✔When an insurance producer conducts business under any name other than the
producers legal name they must - ✔✔Before using the assumed name.
✔✔When a producer was reviewing a potential customers coverage written by another
company the producer made several remarks that were maliciously critical of that
insurer. The producer could be found guilty of - ✔✔defamation
✔✔defamation - ✔✔a producer or broker who makes oral or written maliciously
statements intended to injure another producer or insurer
✔✔A friend helped an insurance producer sell an insurance policy. The producer can
share the commission with a friend if - ✔✔The friend is licensed in the same line of
insurance.
✔✔When is a producer allowed to charge a service fee in addition to the premium for
the processing of an application for insurance? - ✔✔when consented to in writing by the
applicant
, ✔✔pretext interview - ✔✔used to obtain information from a person for the purpose of
investigating a claim where, based upon specific information available for review by the
commissioner there is a reasonable basis for suspecting criminal activity, fraud, material
misrepresentation or material nondisclosure in connection with the claim
✔✔The North Carolina Motor Vehicle Reinsurance Facility was created to provide auto
insurance for otherwise difficult to place risk. The facility is made up of - ✔✔All insurers
licensed to write auto liability insurance in the state
✔✔Which type of misrepresentation persuades an insured, to his or her detriment, to
cancel, lapse or switch policies from one to another? - ✔✔twisting
✔✔twisting - ✔✔is a misrepresentation that persuades and insured/owner to his or her
detriment to cancel, laspe or switch policies from one to another
✔✔Prior to approving the application for resident insurance license, the Commissioner
shall find that the individual meets all of the following requirements except? - ✔✔Is at
least 21 years of age. (applicant must be 18 years of ager)
✔✔An agent offers a client free tickets to a sporting event in exchange for the purchase
of an insurance policy. What is the agent guilty of? - ✔✔rebating
✔✔On its advertisement, a company claims that it has funds in its possession that are,
in fact, not available for the payment of losses or claims. What is the company guilty of?
- ✔✔misrepresentation
✔✔Which type of misrepresentation persuades an insured, to his or her detriment, to
cancel, lapse, or switch policies from one to another? - ✔✔twisting
✔✔What illegal act does a producer commit when the producer represents a policy in a
more favorable light than the policy really is? - ✔✔misrepresentation
✔✔who is responsible for the cost associated with the examination of the insurers? -
✔✔The insurer who is being examinded
✔✔What type of insurer is formed under the laws of another state? - ✔✔foreign
✔✔What type of licensee represents the insurance company? - ✔✔The agent
✔✔Who must be notified of a producer's change of address? - ✔✔The department of
insurance/commissioner/director/superintendent)
QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔SDIP-safe driver incentive plan - ✔✔established to differentiate between safe drivers
and those with records of at fault accidents and major or minor moving traffic violation
convictions
✔✔In North Carolina a Commissioner serves a term for how many years? - ✔✔4 year
term
✔✔An insurance company cannot pay a commission to a person for selling soliciting or
negotiating insurance in North Carolina if - ✔✔That person does not hold a required
license
✔✔What is the continuing education requirement in Ethics for agents in this state? -
✔✔3 hours every two years
✔✔Agents must complete how many hours of CE(continuing education) every year -
✔✔24 hours
✔✔A banker is ready to close on a customers loan. The bank is prepared to offer the
loan but only if the customer purchases a life insurance policy from the bank in the
amount of the loan. This is an example of - ✔✔coercion
✔✔When an insurance producer conducts business under any name other than the
producers legal name they must - ✔✔Before using the assumed name.
✔✔When a producer was reviewing a potential customers coverage written by another
company the producer made several remarks that were maliciously critical of that
insurer. The producer could be found guilty of - ✔✔defamation
✔✔defamation - ✔✔a producer or broker who makes oral or written maliciously
statements intended to injure another producer or insurer
✔✔A friend helped an insurance producer sell an insurance policy. The producer can
share the commission with a friend if - ✔✔The friend is licensed in the same line of
insurance.
✔✔When is a producer allowed to charge a service fee in addition to the premium for
the processing of an application for insurance? - ✔✔when consented to in writing by the
applicant
, ✔✔pretext interview - ✔✔used to obtain information from a person for the purpose of
investigating a claim where, based upon specific information available for review by the
commissioner there is a reasonable basis for suspecting criminal activity, fraud, material
misrepresentation or material nondisclosure in connection with the claim
✔✔The North Carolina Motor Vehicle Reinsurance Facility was created to provide auto
insurance for otherwise difficult to place risk. The facility is made up of - ✔✔All insurers
licensed to write auto liability insurance in the state
✔✔Which type of misrepresentation persuades an insured, to his or her detriment, to
cancel, lapse or switch policies from one to another? - ✔✔twisting
✔✔twisting - ✔✔is a misrepresentation that persuades and insured/owner to his or her
detriment to cancel, laspe or switch policies from one to another
✔✔Prior to approving the application for resident insurance license, the Commissioner
shall find that the individual meets all of the following requirements except? - ✔✔Is at
least 21 years of age. (applicant must be 18 years of ager)
✔✔An agent offers a client free tickets to a sporting event in exchange for the purchase
of an insurance policy. What is the agent guilty of? - ✔✔rebating
✔✔On its advertisement, a company claims that it has funds in its possession that are,
in fact, not available for the payment of losses or claims. What is the company guilty of?
- ✔✔misrepresentation
✔✔Which type of misrepresentation persuades an insured, to his or her detriment, to
cancel, lapse, or switch policies from one to another? - ✔✔twisting
✔✔What illegal act does a producer commit when the producer represents a policy in a
more favorable light than the policy really is? - ✔✔misrepresentation
✔✔who is responsible for the cost associated with the examination of the insurers? -
✔✔The insurer who is being examinded
✔✔What type of insurer is formed under the laws of another state? - ✔✔foreign
✔✔What type of licensee represents the insurance company? - ✔✔The agent
✔✔Who must be notified of a producer's change of address? - ✔✔The department of
insurance/commissioner/director/superintendent)
