NC property insurance, Nc Adjusters
Exam Correct 100%
Passive Unfair Claim Settlement Practice - ANSWER 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.. - ANSWER The time of a loss
A premium overpaid for a sum in excess of a building's ACV must be reimnursed at.. -
ANSWER 6% annual interest from the date of issue
Who must approve & license an employer who wants to self-insure? - ANSWER The
Commissioner
An application for licensing as a self insurer must be filed - ANSWER 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 - ANSWER 60
An application for workers' compensation self-insurance license must have at least ___
in total fixed assets - ANSWER 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: - ANSWER 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: - ANSWER 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: - ANSWER Claim surcharge
The insured CAN request the following initial information be added to a property policy -
ANSWER 1. Deficiency charge
, 2. Basis Rate
3. Property improvement credits
An insurer must provide claim forms to a claimant within _____ days of receiving notice
of loss. - ANSWER 15
Unauthorized insurers are NOT - ANSWER subject to North Carolina insurance laws
True about unauthorized insurers - ANSWER The insurer might be licensed in a foreign
jurisdiction
Business is considered to be contrary to public welfare
The insurer does not have a Certificate of Authority
The Commissioner of Insurance is elected by - ANSWER North Carolina residents for a
4-year term
A licensee must notify the Commissioner in writing within ____ of a change of
residential address - ANSWER 10 days
During a hearing all parties can examine and cross-examine witnesses - ANSWER True
Contract of Insurance - ANSWER An agreement that obligates an insurer to pay the
insured for the loss of something the insured has an interest upon
Minors who are injured while illegally employed will be compensated in the same
manner as any covered adult. - ANSWER True
Compensation for injury to an employee will not be paid if a proximate cause is
intoxication - ANSWER True
An employee must report an injury to the employer within ___ of the injury - ANSWER
30 days
A Workers' Compensation claim must be filed within - ANSWER 2 years
Privacy Protection Act is punishable by - ANSWER License suspension
Up to 50K fine
Up to $10,000 per violation
License revocation
Exam Correct 100%
Passive Unfair Claim Settlement Practice - ANSWER 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.. - ANSWER The time of a loss
A premium overpaid for a sum in excess of a building's ACV must be reimnursed at.. -
ANSWER 6% annual interest from the date of issue
Who must approve & license an employer who wants to self-insure? - ANSWER The
Commissioner
An application for licensing as a self insurer must be filed - ANSWER 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 - ANSWER 60
An application for workers' compensation self-insurance license must have at least ___
in total fixed assets - ANSWER 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: - ANSWER 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: - ANSWER 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: - ANSWER Claim surcharge
The insured CAN request the following initial information be added to a property policy -
ANSWER 1. Deficiency charge
, 2. Basis Rate
3. Property improvement credits
An insurer must provide claim forms to a claimant within _____ days of receiving notice
of loss. - ANSWER 15
Unauthorized insurers are NOT - ANSWER subject to North Carolina insurance laws
True about unauthorized insurers - ANSWER The insurer might be licensed in a foreign
jurisdiction
Business is considered to be contrary to public welfare
The insurer does not have a Certificate of Authority
The Commissioner of Insurance is elected by - ANSWER North Carolina residents for a
4-year term
A licensee must notify the Commissioner in writing within ____ of a change of
residential address - ANSWER 10 days
During a hearing all parties can examine and cross-examine witnesses - ANSWER True
Contract of Insurance - ANSWER An agreement that obligates an insurer to pay the
insured for the loss of something the insured has an interest upon
Minors who are injured while illegally employed will be compensated in the same
manner as any covered adult. - ANSWER True
Compensation for injury to an employee will not be paid if a proximate cause is
intoxication - ANSWER True
An employee must report an injury to the employer within ___ of the injury - ANSWER
30 days
A Workers' Compensation claim must be filed within - ANSWER 2 years
Privacy Protection Act is punishable by - ANSWER License suspension
Up to 50K fine
Up to $10,000 per violation
License revocation
