Personal Lines-Part IV: General Statutes

Which of the following acts may an agent legally conduct?

• Depositing collected premiums into the agent’s own bank account.
• Conduct a pretext interview to verify information supplied on an application.
• Charge an application fee based upon a written notification posted in the office.
• Represent multiple insurance companies.

All of the following are FALSE about the Post Assessment Insurance Guarantee Association EXCEPT?

• They assist policyowners to assess the value of their property after an accident.
• They help avoid financial loss to claimants because of the insolvency of an insurer.
• They assess the validity of an insurer after a negative claim has been filed.
• They guarantee to the Department of Insurance a true assessment about the value of claims after they have been made.

What is the maximum limit available for purchase for bodily injury in auto insurance?

• $1,000,000.
• $100,000.
• $10,000.
• $1,000.

Tom was in an at-fault accident with Jack. Jack was in the other auto and incurred $80,000 worth of BI. Tom's Personal Auto Policy limits are 30/60/25, how much would Tom’s policy pay for Jack's BI?

• $80,000.
• $60,000.
• $30,000.
• 25,000.

To qualify for a license as an insurance agent, an applicant must do all of the following EXCEPT?

• Make application on the form prescribed by the Commissioner.
• Be deemed by the Commissioner to be competent, trustworthy and financially responsible.
• Willfully violate the insurance laws of this or any other state.
• Be at least 18 years of age.

The Fair Access to Insurance Requirements Article applies to all geographic areas of the State EXCEPT?

• Areas of the State with average property values over a specified limit.
• Areas with urban renewal efforts underway.
• The beach area.
• Areas of the State with average property values under a specified limit.

If an agent’s appointment or license is cancelled by an insurer, the insurer must give written notice to the Commissioner within:

• 10 days.
• 30 days.
• 60 days.
• 90 days.

Membership in the North Carolina Motor Vehicle Reinsurance Facility is?

• Required for all foreign and alien insurers writing any line of insurance in North Carolina.
• Voluntary.
• Required for all insurers writing auto insurance in North Carolina, including domestic companies.
• Required for all foreign and alien insurers only writing motor vehicle insurance in North Carolina.

Each of the following is true about insurance brokers in North Carolina EXCEPT?

• Each broker must file and maintain a surety bond in the amount of $15,000.
• A broker represents the insurer and not the insured when soliciting an application for insurance.
• A broker must at all times be currently licensed as an insurance agent.
• The broker’s license only covers the kinds of insurance authorized by the applicant’s agents license.

All of the following are true statements about a Broker EXCEPT?

• Each broker must file and maintain a surety bond in the amount of $15,000.
• A broker represents the insurer and not the insured when soliciting an application for insurance.
• A broker must at all times be currently licensed as an insurance agent.
• The broker’s license only covers the kinds of insurance authorized by the applicant’s agents license.