Personal Lines EVERYTHING UPDATED
ACTUAL Exam Questions and CORRECT
Answers
The North Carolina Commissioner of Insurance, referred to in the text as the Commissioner, is
elected to a _______ year term during each general election. There is no limit on the number of
terms the Commissioner may seek office. - CORRECT ANSWER - 4 years
The commissioner is empowered to investigate what? - CORRECT ANSWER - to
investigate and conduct hearings on any insurance matter in the state including conducting an
oral examination and investigation of persons suspected to be involved in unfair competition or
deceptive practices.
The NCDOI must examine the records of each Domestic Insurer at least once every ___ years. -
CORRECT ANSWER - 5 years
If a licensee is convicted for any crime other than a motor vehicle infraction, the licensee must
notify the Commissioner within _____ days after the conviction. - CORRECT ANSWER -
10 days
Each licensee must also give written notification to the NCDOI of any change to their residential
address or e-mail address within______ days of the change. Failure to provide the information
may result in the licensee having to pay a $____ administrative fee to the NCDOI. - CORRECT
ANSWER - -10 Days
-$50.00
Persons suspected of violations of North Carolina insurance law must be given _____ days
notice prior to the date of any hearing. The notice must state the reason for the hearing and the
charges under investigation by the Commissioner. - CORRECT ANSWER - 10 Days
,Embezzlement of money received is punishable as a FELONY. If the amount embezzled is
$100,000 or more it is a Class __ felony. If the amount is under $100,000 it is a Class ___ felony.
The - CORRECT ANSWER - -Class C
-Class H
Anyone who willfully misstates information in a financial statement required by law is guilty of
perjury. The person or entity that made the misstatement is subject to a fine of between
$_____and $_____. - CORRECT ANSWER - $2,000 and $10,000
A license may be suspended for a period of ___to___ months for a first offense and ____ year
for any further offenses. - CORRECT ANSWER - -1 to 6 Months
-1 Year
Complaint Records:
These records must be retained for at least ____ years after the final disposition of the complaint.
- CORRECT ANSWER - 5 years
No insurer may refuse to insure or refuse to continue to insure an individual, limit the amount,
extent, or kind of coverage available to an individual, or charge an individual a different rate for
the same coverage, SOLELY because of blindness or partial blindness or deafness or partial
deafness. True or False. - CORRECT ANSWER - True
When an insurer requires a written proof of loss, the proof of loss form must be furnished by the
insurer to the insured within _____ days after the receipt from the insured having given notice of
a pending claim. - CORRECT ANSWER - 15 days
If any person assumes to act either as principal or licensee without license as required by law the
person is deemed guilty of a _______. - CORRECT ANSWER - Class 1 Misdemeanor
Can insurers or insurance producers offer insurance products through a credit card facility? -
CORRECT ANSWER - No they can not
,The Commission must meet at least ____times per year. - CORRECT ANSWER - 4 times
A Broker must purchase a Surety Bond for no less than $______ per line of authority. -
CORRECT ANSWER - $15,000
Every Insurance producer who solicits or negotiates an application for insurance of any kind in
any controversy between the insured or his beneficiary and the insurer is regarded as
representing whom? - CORRECT ANSWER - the insurer and not the insured or his
beneficiary.
Every Insurance Broker who solicits an application for insurance of any kind in any controversy
between the insured or his beneficiary and the insurer issuing any policy upon such application is
regarded as representing whom? - CORRECT ANSWER - the insured or his beneficiary
and not the insurer.
A licensee must report to the Commissioner any administrative action taken against him or her in
another state or by another government agency in North Carolina within ______ days after the
final disposition of the matter. Within ________ days after the initial pretrial hearing date, a
licensee must report to the Commissioner any criminal prosecution taken in any state. -
CORRECT ANSWER - 30 days
An insurer cannot accept an insurance application from an individual who is not currently
appointed to that insurer.
An insurer must report to the Commissioner the names of all appointed insurance producers and
pay the prescribed appointment fee within ______ days of the first application for insurance.
Appointments must be renewed annually by _______. - CORRECT ANSWER - -15 days
-April 1st
Any licensee who ceases to maintain his or her residency in North Carolina must deliver his
insurance license or licenses to the Commissioner by personal delivery or by mail within _____
days after terminating residency. - CORRECT ANSWER - 30 days
, The Commissioner may issue a temporary insurance producer license for a period of ____ days
or longer for good cause without requiring examination. - CORRECT ANSWER - 180
days
The Commissioner may issue a learner's permit authorizing the applicant to act as an adjuster for
a learning period of _____days without a requirement of any other license. Not more than one
learner's permit may ever be issued to one individual. - CORRECT ANSWER - 90 days
If any person knowingly or willfully makes a false or fraudulent statement on any application for
insurance, or makes any such statement for the purpose of obtaining any monetary benefit from
any company engaged in the business of insurance in North Carolina, is guilty of a ______ -
CORRECT ANSWER - Class 1 Misdemeanor.
Insurance producers who signs any blank contract or policy of insurance is guilty of a Class 3
Misdemeanor and, upon conviction, will be punished by a fine of $______ to $_____. -
CORRECT ANSWER - $1,000 to $5,000
A Class 1 Misdemeanor has a penalty of $1,000 - $5,000 and/or an imprisonment for _____days
but no more than ___ year. - CORRECT ANSWER - -30 days
-1 year
An insurer or insurance producer must provide a "_______________" to all applicants or insured
parties involved with the insurance transactions during the time of application. - CORRECT
ANSWER - Notice of Insurance Information Practices
What did the Federal Fair Credit Reporting Act of 1971 Establish? - CORRECT
ANSWER - established the right of a consumer to know what information has been
collected on him or her.
What did the Federal Privacy Act establish? - CORRECT ANSWER - established the
requirement that personal information collected by the insurance industry could not be given to
any other party without the consent of the affected party.
ACTUAL Exam Questions and CORRECT
Answers
The North Carolina Commissioner of Insurance, referred to in the text as the Commissioner, is
elected to a _______ year term during each general election. There is no limit on the number of
terms the Commissioner may seek office. - CORRECT ANSWER - 4 years
The commissioner is empowered to investigate what? - CORRECT ANSWER - to
investigate and conduct hearings on any insurance matter in the state including conducting an
oral examination and investigation of persons suspected to be involved in unfair competition or
deceptive practices.
The NCDOI must examine the records of each Domestic Insurer at least once every ___ years. -
CORRECT ANSWER - 5 years
If a licensee is convicted for any crime other than a motor vehicle infraction, the licensee must
notify the Commissioner within _____ days after the conviction. - CORRECT ANSWER -
10 days
Each licensee must also give written notification to the NCDOI of any change to their residential
address or e-mail address within______ days of the change. Failure to provide the information
may result in the licensee having to pay a $____ administrative fee to the NCDOI. - CORRECT
ANSWER - -10 Days
-$50.00
Persons suspected of violations of North Carolina insurance law must be given _____ days
notice prior to the date of any hearing. The notice must state the reason for the hearing and the
charges under investigation by the Commissioner. - CORRECT ANSWER - 10 Days
,Embezzlement of money received is punishable as a FELONY. If the amount embezzled is
$100,000 or more it is a Class __ felony. If the amount is under $100,000 it is a Class ___ felony.
The - CORRECT ANSWER - -Class C
-Class H
Anyone who willfully misstates information in a financial statement required by law is guilty of
perjury. The person or entity that made the misstatement is subject to a fine of between
$_____and $_____. - CORRECT ANSWER - $2,000 and $10,000
A license may be suspended for a period of ___to___ months for a first offense and ____ year
for any further offenses. - CORRECT ANSWER - -1 to 6 Months
-1 Year
Complaint Records:
These records must be retained for at least ____ years after the final disposition of the complaint.
- CORRECT ANSWER - 5 years
No insurer may refuse to insure or refuse to continue to insure an individual, limit the amount,
extent, or kind of coverage available to an individual, or charge an individual a different rate for
the same coverage, SOLELY because of blindness or partial blindness or deafness or partial
deafness. True or False. - CORRECT ANSWER - True
When an insurer requires a written proof of loss, the proof of loss form must be furnished by the
insurer to the insured within _____ days after the receipt from the insured having given notice of
a pending claim. - CORRECT ANSWER - 15 days
If any person assumes to act either as principal or licensee without license as required by law the
person is deemed guilty of a _______. - CORRECT ANSWER - Class 1 Misdemeanor
Can insurers or insurance producers offer insurance products through a credit card facility? -
CORRECT ANSWER - No they can not
,The Commission must meet at least ____times per year. - CORRECT ANSWER - 4 times
A Broker must purchase a Surety Bond for no less than $______ per line of authority. -
CORRECT ANSWER - $15,000
Every Insurance producer who solicits or negotiates an application for insurance of any kind in
any controversy between the insured or his beneficiary and the insurer is regarded as
representing whom? - CORRECT ANSWER - the insurer and not the insured or his
beneficiary.
Every Insurance Broker who solicits an application for insurance of any kind in any controversy
between the insured or his beneficiary and the insurer issuing any policy upon such application is
regarded as representing whom? - CORRECT ANSWER - the insured or his beneficiary
and not the insurer.
A licensee must report to the Commissioner any administrative action taken against him or her in
another state or by another government agency in North Carolina within ______ days after the
final disposition of the matter. Within ________ days after the initial pretrial hearing date, a
licensee must report to the Commissioner any criminal prosecution taken in any state. -
CORRECT ANSWER - 30 days
An insurer cannot accept an insurance application from an individual who is not currently
appointed to that insurer.
An insurer must report to the Commissioner the names of all appointed insurance producers and
pay the prescribed appointment fee within ______ days of the first application for insurance.
Appointments must be renewed annually by _______. - CORRECT ANSWER - -15 days
-April 1st
Any licensee who ceases to maintain his or her residency in North Carolina must deliver his
insurance license or licenses to the Commissioner by personal delivery or by mail within _____
days after terminating residency. - CORRECT ANSWER - 30 days
, The Commissioner may issue a temporary insurance producer license for a period of ____ days
or longer for good cause without requiring examination. - CORRECT ANSWER - 180
days
The Commissioner may issue a learner's permit authorizing the applicant to act as an adjuster for
a learning period of _____days without a requirement of any other license. Not more than one
learner's permit may ever be issued to one individual. - CORRECT ANSWER - 90 days
If any person knowingly or willfully makes a false or fraudulent statement on any application for
insurance, or makes any such statement for the purpose of obtaining any monetary benefit from
any company engaged in the business of insurance in North Carolina, is guilty of a ______ -
CORRECT ANSWER - Class 1 Misdemeanor.
Insurance producers who signs any blank contract or policy of insurance is guilty of a Class 3
Misdemeanor and, upon conviction, will be punished by a fine of $______ to $_____. -
CORRECT ANSWER - $1,000 to $5,000
A Class 1 Misdemeanor has a penalty of $1,000 - $5,000 and/or an imprisonment for _____days
but no more than ___ year. - CORRECT ANSWER - -30 days
-1 year
An insurer or insurance producer must provide a "_______________" to all applicants or insured
parties involved with the insurance transactions during the time of application. - CORRECT
ANSWER - Notice of Insurance Information Practices
What did the Federal Fair Credit Reporting Act of 1971 Establish? - CORRECT
ANSWER - established the right of a consumer to know what information has been
collected on him or her.
What did the Federal Privacy Act establish? - CORRECT ANSWER - established the
requirement that personal information collected by the insurance industry could not be given to
any other party without the consent of the affected party.
