NC Statues & Regulations Pertinent to Life

Question 1

Which of the following would not have to comply with the Insurance Information and Privacy Protection Act?

Answer 1

The insurance regulators

Question 2

If an agent offers to give the prospect part of the commission as an incentive to buy the policy, the agent is engaging in an illegal act known as

Answer 2

rebating

Question 3

If the insurance company is going to use information from public records, such as DMV records, when must the Notice of Information Practices be provided by the prospect?

Answer 3

No later than the delivery of the policy

Question 4

How many days does a person have to request the reason for an adverse underwriting decision

Answer 4

90 business days

Question 5

The commissioner of insurance

Answer 5

approves insurance rates

Question 6

If an individual sends in a written request concerning disputed information, how long does the insurance company have to report their findings to him/her

Answer 6

30 business days

Question 7

An insurance company can base rates on all of the following except

Answer 7

race

Question 8

The insurer cannot refuse to issue or charge a higher premium in which of the following circumstances?

Answer 8

A person who possesses the sickle cell anemia

Question 9

All statements in the application and the policy are deemed to be

Answer 9

representations

Question 10

Which of the following actions could be completed without an insurance agent’s license

Answer 10

accepting premiums and or applications

Question 11

Under the Insurance Information and Privacy Protection Act when must a prospect be notified that information will be obtained from nonpublic records

Answer 11

at the time the information is gathered

Question 12

Which of the following statements is not true regarding adverse underwriting decisions

Answer 12

the insurer can base an adverse underwriting decision solely on the basis of a previous adverse underwriting decision

Question 13

If the company issues a policy based on an incomplete application, and the insured suffers a loss after the policy goes into effect, the company

Answer 13

is obligated to pay full benefits

Question 14

An insurance company whose home office is located in NC could be referred as

Answer 14

domestic

Question 15

Any change of residency within the state must be reported to the Department of Insurance within how many days10

Answer 15

10

Question 16

At what time would an insured most likely be given information concerning his/her rights under the Insurance Information and Privacy Protection Act

Answer 16

When the company makes an adverse determination

Question 17

The commissioner’s powers include all of the following except

Answer 17

Enacting laws

Question 18

Untrue statements about a competitor or his/her company is called

Answer 18

rebating

Question 19

The Insurance Information and Privacy Act

Answer 19

Sets up procedures for consumer reporting agency

Question 20

If an agent uses illegal tactics to persuade a prospect to drop existing insurance, then he is guilty of

Answer 20

twisting

Question 21

If the commissioner of insurance is unable to fulfill his/her term, then who appoints someone to take his place

Answer 21

the governor

Question 22

All of the following are examples of unfair practices except

Answer 22

furnishing required disclosure information

Question 23

Instead of turning in premium collection for a given week, an agent uses the money to pay a few personal bills. This would be an example of

Answer 23

embezzlement/larceny

Question 24

The commissioner of insurance is elected by the people of NC for a term of

Answer 24

4 years

Question 25

An agent could be personally liable for doing which of the following

Answer 25

representing an unauthorized company

Question 26

Which of the following is not a requirement to be licensed in NC

Answer 26

being a high school graduate

Question 27

An individual hides known material facts, leading an insurance company to make a different underwriting decision than they would have had had they know the truth. This is called

Answer 27

Concealment

Question 28

Who is protected under the Fair Credit Reporting Act

Answer 28

The consumer

Question 29

A disclosure authorization form is valid for a maximum of _____________months

Answer 29

30

Question 30

Under the Fair Credit Reporting Act, the applicant does not have which of the following rights

Answer 30

the right to sue companies for adverse decisions

Question 31

What is the purpose of the Insurance Information and Privacy Protection Act

Answer 31

To establish standards for the collection, use and disclosure of information gathered in connection with insurance transactions by insurance institutions and insurance support organizations, and agent

Question 32

The commissioner may do all of the following except

Answer 32

change state insurance laws at will for the good of the general public

Question 33

When a company becomes aware that an agent is guilty of embezzlement, they must file the commissioner a completer statement of the facts within

Answer 33

30 day

Question 34

The minimum age for an individual to be licensed is

Answer 34

18

Question 35

A temporary license may be issued for a maximum of ___________days

Answer 35

180

Question 36

The continuing education (CE) requirements include __________ credit hours completed buiennially (every 2 years)

Answer 36

24

Question 37

Whom does the agent represent

Answer 37

the seller

Question 38

A replacement notice must be sent to the existing company within

Answer 38

5 working days

Question 39

If an agent is allowed to represent one company and one company only, he/she is referred to as a

Answer 39

captive(exclusive) agent

Question 40

An agent may all him/herself a financial planner or investment advisor if

Answer 40

the source of the compensation is stated

Question 41

The broker represents the

Answer 41

policyholder

Question 42

An agent cannot use the terms "financial planner" or "investment advisor" unless

Answer 42

he/she has obtained the proper credentials

Question 43

A Hearing Order issued by the commissioner requires advance notice of at least _____________ days

Answer 43

10

Question 44

Which of the following is not true regarding the general rules of life insurance solicitations

Answer 44

Cost indexes are only useful in comparing the relative costs of two or more policies from the same company

Question 45

Replacing life insurance policies are required to provide a free-look period of

Answer 45

30 days

Question 46

Efforts by an insurance company to keep their policyholders from dropping insurance to buy from another company are called

Answer 46

conservation

Question 47

In NC, a minor over the age of ________ may make contracts of insurance

Answer 47

15

Question 48

Existing insurance that is dropped in order to purchase a new insurance is known as

Answer 48

replacement

Question 49

An attempt by an existing insurer to dissuade a policy owner from replacing an existing life insurance policy is called

Answer 49

conservation

Question 50

Failing to deliver a policy summary when required is considered

Answer 50

misrepresentations

Question 51

If a replacement is, in fact, taking place, when must the agent have the applicant sign a Notice Regarding Replacement Form

Answer 51

At the time of the application

Question 52

NC Life's Insurance Replacement Regulation applies to

Answer 52

Whole Life Insurance

Question 53

When a life insurance policy is delivered, what must be given to the insured

Answer 53

Buyers' Guide and Policy Summary

Question 54

Which of the following statements is correct regarding the use of the term "financial Planner"

Answer 54

The agent cannont represent him or herself as one unless he / she is properly qualified

Question 55

The purpose of the replacement laws is

Answer 55

to protect the interests of life insurance purchasers by establishing minimum standards of conduct

Question 56

Which of the following would not constitute a replacement

Answer 56

converting term insurance in the same company

Question 57

When is the delivery of a policy summary not required

Answer 57

if the policy has an equivalent level death benefit of 5,000 or less

Question 58

When does an agent have to inform someone that certain questions being asked are solely for marketing or research purposes

Answer 58

Any time he/she sells insurance

Question 59

An agent's insurance license should

Answer 59

be carried with you

Question 60

What do you call someone who is licensed to sell only credit life, travel accident or dental insurance

Answer 60

a limited representative

Question 61

The Guaranty Association protects the policyholder of companies that become insolvent. The money used to bail out an insolvent company comes from

Answer 61

the member insurers(Companies)

Question 61

A prearrangement (funeral) insurance policy is being purchased. All of the following must be disclosed at the time of application and prior to the acceptance of the initial premium, except which

Answer 61

how much the policy is actually costing the funeral home and their profits from the sale

Question 62

The Guaranty Association provides protection for all of the following except

Answer 62

fraternals

Question 63

Using the existence of the Guaranty Association as an aid to the sale of insurance is

Answer 63

prohibited

Question 64

What is the purpose of the Guaranty Association

Answer 64

to protect the insured against an insurer's failure to perform its contractual duties

Question 65

Which of the following would be covered by the Guaranty Association

Answer 65

A supplemental policy, such as a hospital indemnity

Question 66

All of the following are covered under the Guaranty Association except

Answer 66

group dental insurance

Question 67

A contract whereby immediate cash is given in exchange for the transfer of a life insurance policy is called a

Answer 67

viatical

Question 68

An insurance company whose home office is in another state would be called

Answer 68

foreign

Question 69

Appointments are renewed by the NC Department of Insurance how often

Answer 69

Annually