CHAPTER 8 NORTH CAROLINA GENERAL
REGULATIONS | COMPREHENSIVE STUDY
GUIDE, PRACTICE QUESTIONS, CORRECT
ANSWERS AND EXAM PREP
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Coercion What unfair trade practice manipulates through the prospect of something desirable?
Coercion generally manipulates through the prospect of something desirable.
Failure to pay child support The Commissioner may suspend, revoke or refuse to issue or renew an agent license for
which of the following reasons?
The Commissioner may place on probation, suspend, revoke, or refuse to renew any
license for failing to comply with an administrative or court order imposing a child
support obligation or failing to pay STATE income tax.
Agents can never retain a portion of funds received for the In North Carolina, what is the rule on agents retaining any portion of funds received for
payment of losses. the payment of losses?
It shall be unlawful for any insurance carrier, or officer, agent or representative of an
insurance company writing credit life and credit accident and health insurance to permit
any agent or representative of such company to retain any portion of funds received for
the payment of losses incurred.
A contract of insurance What is an agreement by which the insurer is bound to pay money as reimbursement for
the destruction, loss, or injury of something in which the other party has an interest?
A contract of insurance is an agreement by which the insurer is bound to pay money or its
equivalent or to do some act of value to the insured upon, and as an indemnity or
reimbursement for the destruction, loss, or injury of something in which the other party
has an interest.
An agent An unlicensed person who solicits or negotiates insurance is considered:
An unlicensed person who solicits or negotiates insurance is also an agent, meaning that
the agent and the insurer he represents takes on the same liability.
The licensee is at least 65 years old. Which of the following will exempt a licensee from needing to complete the continuing
education courses requirement?
A licensee is exempt from needing to complete the 24-hour continuing education
courses requirement if the licensee is at least 65 years old and has been continuously
licensed for at least 25 years.
,15 days If an insurer terminates an appointment with a producer, how much time does it have to
notify the producer?
Within 15 days after making the notification, the insurer will mail a copy of the notification
to the producer at the producer's last known address.
$15,000 Brokers must put forth a bond of at least how much?
Broker applicants must put forth a bond of at least $15,000 for the use of aggrieved
parties before the broker's license will be issued.
Variable life insurance Limited line credit insurance includes all the following, EXCEPT:
"Limited line credit insurance" includes any type of credit insurance, mortgage life,
mortgage guaranty, mortgage disability, automobile dealer gap insurance, and any other
form of insurance offered in connection with an extension of credit that is limited to
partially or wholly extinguishing that credit obligation and that the Commissioner
determines should be designated a form of limited line credit insurance.
$1,000 What is the minimum penalty for willfully violating a cease and desist order of the
Commissioner?
Any person who willfully violates a cease and desist order of the Commissioner after it
has become final, and while the order is in effect, must forfeit and pay to the
Commissioner the sum of between $1,000 and $5,000 for each violation.
Yes May an individual who holds a producer license in Texas qualify for a nonresident license
in North Carolina?
An individual may qualify for a nonresident license if he holds a similar license in another
state or territory of the United States.
$5,000 Any agent who signs a blank contract or policy of insurance will be fined a maximum of:
Any agent who signs a blank contract or policy of insurance is guilty of a Class 3
misdemeanor and, upon conviction, will be punished by a fine of at least $1,000, but no
more than $5,000.
, Defamation If an agent were to publish literature that is false or maliciously critical of another insurer
calculated to injure a person engaged in the business of insurance, the agent would be
committing:
Defamation is circulating of any oral or written statement or any pamphlet, circular,
article, or literature which is false or maliciously critical of or substantially misrepresents
the financial condition of an insurer and which is calculated to injure any person engaged
in the business of insurance.
They are not subject to civil liability. What happens if a person reports an incidence of insurance fraud, without actual malice,
and the information is proven to be false?
A person who merely reports an incidence of insurance fraud, without actual malice, is
not subject to civil liability for the reported action.
a. Mortgage disability insurance Limited line credit insurance includes all the following.
b. Mortgage life insurance
d. Automobile dealer gap insurance
$50 Violating the law regarding a licensee's change of address results in a fee of:
A licensee who violates this law shall pay an administrative fee of $50 to the
Commissioner.
Class I felony A person who intentionally misstates financial information is guilty of a:
If any person in any financial or other statement intentionally misstates information, that
person making oath to or subscribing the statement is guilty of a Class I felony.
18 The minimum age requirement to become a licensed insurance producer in North
Carolina is:
An applicant for a producer's license must be at least 18 years of age.
REGULATIONS | COMPREHENSIVE STUDY
GUIDE, PRACTICE QUESTIONS, CORRECT
ANSWERS AND EXAM PREP
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Coercion What unfair trade practice manipulates through the prospect of something desirable?
Coercion generally manipulates through the prospect of something desirable.
Failure to pay child support The Commissioner may suspend, revoke or refuse to issue or renew an agent license for
which of the following reasons?
The Commissioner may place on probation, suspend, revoke, or refuse to renew any
license for failing to comply with an administrative or court order imposing a child
support obligation or failing to pay STATE income tax.
Agents can never retain a portion of funds received for the In North Carolina, what is the rule on agents retaining any portion of funds received for
payment of losses. the payment of losses?
It shall be unlawful for any insurance carrier, or officer, agent or representative of an
insurance company writing credit life and credit accident and health insurance to permit
any agent or representative of such company to retain any portion of funds received for
the payment of losses incurred.
A contract of insurance What is an agreement by which the insurer is bound to pay money as reimbursement for
the destruction, loss, or injury of something in which the other party has an interest?
A contract of insurance is an agreement by which the insurer is bound to pay money or its
equivalent or to do some act of value to the insured upon, and as an indemnity or
reimbursement for the destruction, loss, or injury of something in which the other party
has an interest.
An agent An unlicensed person who solicits or negotiates insurance is considered:
An unlicensed person who solicits or negotiates insurance is also an agent, meaning that
the agent and the insurer he represents takes on the same liability.
The licensee is at least 65 years old. Which of the following will exempt a licensee from needing to complete the continuing
education courses requirement?
A licensee is exempt from needing to complete the 24-hour continuing education
courses requirement if the licensee is at least 65 years old and has been continuously
licensed for at least 25 years.
,15 days If an insurer terminates an appointment with a producer, how much time does it have to
notify the producer?
Within 15 days after making the notification, the insurer will mail a copy of the notification
to the producer at the producer's last known address.
$15,000 Brokers must put forth a bond of at least how much?
Broker applicants must put forth a bond of at least $15,000 for the use of aggrieved
parties before the broker's license will be issued.
Variable life insurance Limited line credit insurance includes all the following, EXCEPT:
"Limited line credit insurance" includes any type of credit insurance, mortgage life,
mortgage guaranty, mortgage disability, automobile dealer gap insurance, and any other
form of insurance offered in connection with an extension of credit that is limited to
partially or wholly extinguishing that credit obligation and that the Commissioner
determines should be designated a form of limited line credit insurance.
$1,000 What is the minimum penalty for willfully violating a cease and desist order of the
Commissioner?
Any person who willfully violates a cease and desist order of the Commissioner after it
has become final, and while the order is in effect, must forfeit and pay to the
Commissioner the sum of between $1,000 and $5,000 for each violation.
Yes May an individual who holds a producer license in Texas qualify for a nonresident license
in North Carolina?
An individual may qualify for a nonresident license if he holds a similar license in another
state or territory of the United States.
$5,000 Any agent who signs a blank contract or policy of insurance will be fined a maximum of:
Any agent who signs a blank contract or policy of insurance is guilty of a Class 3
misdemeanor and, upon conviction, will be punished by a fine of at least $1,000, but no
more than $5,000.
, Defamation If an agent were to publish literature that is false or maliciously critical of another insurer
calculated to injure a person engaged in the business of insurance, the agent would be
committing:
Defamation is circulating of any oral or written statement or any pamphlet, circular,
article, or literature which is false or maliciously critical of or substantially misrepresents
the financial condition of an insurer and which is calculated to injure any person engaged
in the business of insurance.
They are not subject to civil liability. What happens if a person reports an incidence of insurance fraud, without actual malice,
and the information is proven to be false?
A person who merely reports an incidence of insurance fraud, without actual malice, is
not subject to civil liability for the reported action.
a. Mortgage disability insurance Limited line credit insurance includes all the following.
b. Mortgage life insurance
d. Automobile dealer gap insurance
$50 Violating the law regarding a licensee's change of address results in a fee of:
A licensee who violates this law shall pay an administrative fee of $50 to the
Commissioner.
Class I felony A person who intentionally misstates financial information is guilty of a:
If any person in any financial or other statement intentionally misstates information, that
person making oath to or subscribing the statement is guilty of a Class I felony.
18 The minimum age requirement to become a licensed insurance producer in North
Carolina is:
An applicant for a producer's license must be at least 18 years of age.
