NC property insurance, Nc Adjusters Exam with
correct answers
Passive Unfair Claim Settlement Practice - CORRECT ANSWERS ✔✔1. Failing to act
promptly upon receiving a claim
2. Failing to implement reasonable standards for the prompt investigation of claims
3. Failing to affirm or deny coverage within a reasonable time after receiving the
proof of loss
A property policy pays ACV at.. - CORRECT ANSWERS ✔✔The time of a loss
A premium overpaid for a sum in excess of a building's ACV must be reimnursed at..
- CORRECT ANSWERS ✔✔6% annual interest from the date of issue
Who must approve & license an employer who wants to self-insure? - CORRECT
ANSWERS ✔✔The Commissioner
An application for licensing as a self insurer must be filed - CORRECT ANSWERS
✔✔at least 90 days prior to proposed licensing date
If a self-insurance for workers' compensation license is denied, the employer has ___
days to correct deficiencies without reapplying - CORRECT ANSWERS ✔✔60
,An application for workers' compensation self-insurance license must have at least
___ in total fixed assets - CORRECT ANSWERS ✔✔500K
The reason for policy cancellation after the first 60 days of the policy term that is
NOT acceptable under North Carolina policy cancellation statutes: - CORRECT
ANSWERS ✔✔The insured has submitted an excessive number of claims in the past
3 years
The reason for policy cancellation after the first 60 days of the policy term that is
acceptable under North Carolina policy cancellation statutes: - CORRECT
ANSWERS ✔✔If a policy has been in effect for less than 60 days and is not a renewal
of a policy, it may be cancelled for any reason by furnishing to the insured at least 15
days prior written notice of and reasons for cancellation; otherwise a cancellation
must comply with the North Carolina cancellation statutes.
The insured can request the following initial information be added to a property
policy, EXCEPT: - CORRECT ANSWERS ✔✔Claim surcharge
The insured CAN request the following initial information be added to a property
policy - CORRECT ANSWERS ✔✔1. Deficiency charge
2. Basis Rate
3. Property improvement credits
A home loan provide may accept a binder as long as it - CORRECT ANSWERS
✔✔includes specified identifying information and may not be cancelled without 10
days' written notice to the mortgagee.
, Each insurer or its agents must maintain a record of all written complaints for at
least _____ years after the complaint's final disposition or, for domestic companies,
until the Commissioner adopts a final report of a general examination that contains a
review of these records, whichever is later. - CORRECT ANSWERS ✔✔5
The North Carolina Motor Vehicle Reinsurance Facility provides automobile
insurance to - CORRECT ANSWERS ✔✔motor vehicles, which are self-propelled
vehicles designed for use on a highway, including motorcycles, but not farm or
construction equipment.
True statements regarding SDIP plan surcharges - CORRECT ANSWERS ✔✔An
insurer may provide for premium surcharges for insureds having less than 3 years'
driving experience as licensed drivers.
SDIP points must be commensurate with the severity of the claimant's injury
A subclassification plan surcharge must be applied to a policy for 3 policy years
A major accident is an at-fault accident resulting in BI, death, or PD of at least $3,000
What are the minimum policy limits that the Facility will cover a risk ceded by a
member insurer? - CORRECT ANSWERS ✔✔30/60/25
The North Carolina Rate Bureau assesses and recommends rates for property and
casualty insurance against loss to residential contents and real property with not
more than ____ housing units, theft and physical damage loss to nonfleet private
passenger motor vehicles, and Workers' Compensation and employers' liability
insurance. - CORRECT ANSWERS ✔✔4
correct answers
Passive Unfair Claim Settlement Practice - CORRECT ANSWERS ✔✔1. Failing to act
promptly upon receiving a claim
2. Failing to implement reasonable standards for the prompt investigation of claims
3. Failing to affirm or deny coverage within a reasonable time after receiving the
proof of loss
A property policy pays ACV at.. - CORRECT ANSWERS ✔✔The time of a loss
A premium overpaid for a sum in excess of a building's ACV must be reimnursed at..
- CORRECT ANSWERS ✔✔6% annual interest from the date of issue
Who must approve & license an employer who wants to self-insure? - CORRECT
ANSWERS ✔✔The Commissioner
An application for licensing as a self insurer must be filed - CORRECT ANSWERS
✔✔at least 90 days prior to proposed licensing date
If a self-insurance for workers' compensation license is denied, the employer has ___
days to correct deficiencies without reapplying - CORRECT ANSWERS ✔✔60
,An application for workers' compensation self-insurance license must have at least
___ in total fixed assets - CORRECT ANSWERS ✔✔500K
The reason for policy cancellation after the first 60 days of the policy term that is
NOT acceptable under North Carolina policy cancellation statutes: - CORRECT
ANSWERS ✔✔The insured has submitted an excessive number of claims in the past
3 years
The reason for policy cancellation after the first 60 days of the policy term that is
acceptable under North Carolina policy cancellation statutes: - CORRECT
ANSWERS ✔✔If a policy has been in effect for less than 60 days and is not a renewal
of a policy, it may be cancelled for any reason by furnishing to the insured at least 15
days prior written notice of and reasons for cancellation; otherwise a cancellation
must comply with the North Carolina cancellation statutes.
The insured can request the following initial information be added to a property
policy, EXCEPT: - CORRECT ANSWERS ✔✔Claim surcharge
The insured CAN request the following initial information be added to a property
policy - CORRECT ANSWERS ✔✔1. Deficiency charge
2. Basis Rate
3. Property improvement credits
A home loan provide may accept a binder as long as it - CORRECT ANSWERS
✔✔includes specified identifying information and may not be cancelled without 10
days' written notice to the mortgagee.
, Each insurer or its agents must maintain a record of all written complaints for at
least _____ years after the complaint's final disposition or, for domestic companies,
until the Commissioner adopts a final report of a general examination that contains a
review of these records, whichever is later. - CORRECT ANSWERS ✔✔5
The North Carolina Motor Vehicle Reinsurance Facility provides automobile
insurance to - CORRECT ANSWERS ✔✔motor vehicles, which are self-propelled
vehicles designed for use on a highway, including motorcycles, but not farm or
construction equipment.
True statements regarding SDIP plan surcharges - CORRECT ANSWERS ✔✔An
insurer may provide for premium surcharges for insureds having less than 3 years'
driving experience as licensed drivers.
SDIP points must be commensurate with the severity of the claimant's injury
A subclassification plan surcharge must be applied to a policy for 3 policy years
A major accident is an at-fault accident resulting in BI, death, or PD of at least $3,000
What are the minimum policy limits that the Facility will cover a risk ceded by a
member insurer? - CORRECT ANSWERS ✔✔30/60/25
The North Carolina Rate Bureau assesses and recommends rates for property and
casualty insurance against loss to residential contents and real property with not
more than ____ housing units, theft and physical damage loss to nonfleet private
passenger motor vehicles, and Workers' Compensation and employers' liability
insurance. - CORRECT ANSWERS ✔✔4
