NORTH CAROLINA INSURANCE LICENSE | TOP
SCORES MADE SIMPLE | TRUSTED TEST
SOLUTIONS!
When a company is licensed in a state, it is considered.. - Answer: admitted
A fiduciary is a - Answer: person in a position of financial trust
Which of the following levels of agent authority is a written agreement with the issuer? -
Answer: express authority
What is a "physical" hazard? - Answer: wet floor, fallen down tree, ice on sidewalk
What is a "morale" hazard? - Answer: carelessness
What is a "moral" hazard? - Answer: dishonesty
Who sells insurance products for several companies? - Answer: independent agents
Who sells insurance products for only one company? - Answer: captive agents
Agents represent the.. - Answer: insurer
Brokers/consultants represent the.. - Answer: insured
What does CANHAM stand for? - Answer: Calculable
Affordable
Non-catastrophic
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,Homogeneous
Accidental
Measurable
What risk management method do insurance companies use? - Answer: transfer
At the state level, the government is involved in providing.. - Answer: unemployment
insurance
At the federal level, the government is involved in providing.. - Answer: flood, war risk,
federal crop, and nuclear energy liability insurance
Insurance is a contract that.. - Answer: transfers the risk of financial loss from an
individual or business to an insurance company
Direct response marketing includes.. - Answer: mail, newspapers, magazines, TV, and
the internet (No producer agent)
The first party of an insurance contract is.. - Answer: insured
The second party of an insurance contract is.. - Answer: insurer
Surplus lines insurance is placed with a.. - Answer: non admitted carrier by a surplus
lines agent
What is the cause of a loss - Answer: peril
Changes in an insurance application must be initiated by.. - Answer: the applicant
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
, The USA PATRIOT ACT is designed to.. - Answer: prevent, detect, and prosecute
international money laundering and financing of terrorism
Who pays for medical exams and any tests that are required during the underwriting
process? - Answer: The insurer
Part one of the application includes.. - Answer: all general and personal data about the
insured
Most state laws allow life insurance applications to be backdated up to.. - Answer: 6
months
A producers report will be signed by.. - Answer: ONLY the producer
Part two of the application contains information about the insured's.. - Answer: physical
condition and habits
Insurers cannot discriminate based on.. - Answer: race, religion, national origin, or place
of residence
The Medical Information Bureau (MIB) is a.. - Answer: nonprofit trade association that
maintains underwriting information on applicants
What premium payment mode has the lowest annual premium? - Answer: annual
In a life insurance contract, insurable interest must exist at the time of.. - Answer:
application
Social security suspends payment during which of the following periods? - Answer:
blackout period
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
SCORES MADE SIMPLE | TRUSTED TEST
SOLUTIONS!
When a company is licensed in a state, it is considered.. - Answer: admitted
A fiduciary is a - Answer: person in a position of financial trust
Which of the following levels of agent authority is a written agreement with the issuer? -
Answer: express authority
What is a "physical" hazard? - Answer: wet floor, fallen down tree, ice on sidewalk
What is a "morale" hazard? - Answer: carelessness
What is a "moral" hazard? - Answer: dishonesty
Who sells insurance products for several companies? - Answer: independent agents
Who sells insurance products for only one company? - Answer: captive agents
Agents represent the.. - Answer: insurer
Brokers/consultants represent the.. - Answer: insured
What does CANHAM stand for? - Answer: Calculable
Affordable
Non-catastrophic
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,Homogeneous
Accidental
Measurable
What risk management method do insurance companies use? - Answer: transfer
At the state level, the government is involved in providing.. - Answer: unemployment
insurance
At the federal level, the government is involved in providing.. - Answer: flood, war risk,
federal crop, and nuclear energy liability insurance
Insurance is a contract that.. - Answer: transfers the risk of financial loss from an
individual or business to an insurance company
Direct response marketing includes.. - Answer: mail, newspapers, magazines, TV, and
the internet (No producer agent)
The first party of an insurance contract is.. - Answer: insured
The second party of an insurance contract is.. - Answer: insurer
Surplus lines insurance is placed with a.. - Answer: non admitted carrier by a surplus
lines agent
What is the cause of a loss - Answer: peril
Changes in an insurance application must be initiated by.. - Answer: the applicant
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
, The USA PATRIOT ACT is designed to.. - Answer: prevent, detect, and prosecute
international money laundering and financing of terrorism
Who pays for medical exams and any tests that are required during the underwriting
process? - Answer: The insurer
Part one of the application includes.. - Answer: all general and personal data about the
insured
Most state laws allow life insurance applications to be backdated up to.. - Answer: 6
months
A producers report will be signed by.. - Answer: ONLY the producer
Part two of the application contains information about the insured's.. - Answer: physical
condition and habits
Insurers cannot discriminate based on.. - Answer: race, religion, national origin, or place
of residence
The Medical Information Bureau (MIB) is a.. - Answer: nonprofit trade association that
maintains underwriting information on applicants
What premium payment mode has the lowest annual premium? - Answer: annual
In a life insurance contract, insurable interest must exist at the time of.. - Answer:
application
Social security suspends payment during which of the following periods? - Answer:
blackout period
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
