NORTH CAROLINA INSURANCE
LICENSE EXAM UPDATED QUESTIONS
AND CORRECT ANSWERS.
When a company is licensed in a state, it is considered.. - ANS admitted
A fiduciary is a - ANS person in a position of financial trust
Which of the following levels of agent authority is a written agreement with the issuer? -
ANS express authority
What is a "physical" hazard? - ANS wet floor, fallen down tree, ice on sidewalk
What is a "morale" hazard? - ANS carelessness
What is a "moral" hazard? - ANS dishonesty
Who sells insurance products for several companies? - ANS independent agents
Who sells insurance products for only one company? - ANS captive agents
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Agents represent the.. - ANS insurer
Brokers/consultants represent the.. - ANS insured
What does CANHAM stand for? - ANS Calculable
Affordable
Non-catastrophic
Homogeneous
Accidental
Measurable
What risk management method do insurance companies use? - ANS transfer
At the state level, the government is involved in providing.. - ANS unemployment insurance
At the federal level, the government is involved in providing.. - ANS flood, war risk, federal
crop, and nuclear energy liability insurance
Insurance is a contract that.. - ANS transfers the risk of financial loss from an individual or
business to an insurance company
Direct response marketing includes.. - ANS mail, newspapers, magazines, TV, and the internet
(No producer agent)
The first party of an insurance contract is.. - ANS insured
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, The second party of an insurance contract is.. - ANS insurer
Surplus lines insurance is placed with a.. - ANS non admitted carrier by a surplus lines agent
What is the cause of a loss - ANS peril
Changes in an insurance application must be initiated by.. - ANS the applicant
The USA PATRIOT ACT is designed to.. - ANS 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? -
ANS The insurer
Part one of the application includes.. - ANS all general and personal data about the insured
Most state laws allow life insurance applications to be backdated up to.. - ANS 6 months
A producers report will be signed by.. - ANS ONLY the producer
Part two of the application contains information about the insured's.. - ANS physical
condition and habits
Insurers cannot discriminate based on.. - ANS race, religion, national origin, or place of
residence
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
LICENSE EXAM UPDATED QUESTIONS
AND CORRECT ANSWERS.
When a company is licensed in a state, it is considered.. - ANS admitted
A fiduciary is a - ANS person in a position of financial trust
Which of the following levels of agent authority is a written agreement with the issuer? -
ANS express authority
What is a "physical" hazard? - ANS wet floor, fallen down tree, ice on sidewalk
What is a "morale" hazard? - ANS carelessness
What is a "moral" hazard? - ANS dishonesty
Who sells insurance products for several companies? - ANS independent agents
Who sells insurance products for only one company? - ANS captive agents
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Agents represent the.. - ANS insurer
Brokers/consultants represent the.. - ANS insured
What does CANHAM stand for? - ANS Calculable
Affordable
Non-catastrophic
Homogeneous
Accidental
Measurable
What risk management method do insurance companies use? - ANS transfer
At the state level, the government is involved in providing.. - ANS unemployment insurance
At the federal level, the government is involved in providing.. - ANS flood, war risk, federal
crop, and nuclear energy liability insurance
Insurance is a contract that.. - ANS transfers the risk of financial loss from an individual or
business to an insurance company
Direct response marketing includes.. - ANS mail, newspapers, magazines, TV, and the internet
(No producer agent)
The first party of an insurance contract is.. - ANS insured
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, The second party of an insurance contract is.. - ANS insurer
Surplus lines insurance is placed with a.. - ANS non admitted carrier by a surplus lines agent
What is the cause of a loss - ANS peril
Changes in an insurance application must be initiated by.. - ANS the applicant
The USA PATRIOT ACT is designed to.. - ANS 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? -
ANS The insurer
Part one of the application includes.. - ANS all general and personal data about the insured
Most state laws allow life insurance applications to be backdated up to.. - ANS 6 months
A producers report will be signed by.. - ANS ONLY the producer
Part two of the application contains information about the insured's.. - ANS physical
condition and habits
Insurers cannot discriminate based on.. - ANS race, religion, national origin, or place of
residence
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
