Exam (elaborations)
North Carolina Regulations for Life (Chapter 5) Questions and Answers
- Module
- Institution
North Carolina Regulations for Life (Chapter 5)
[Show more]
Seller
Follow
julianah420
Reviews received
Content preview
North Carolina Regulations for Life(Chapter 5)
Insurance agents licensed in this state (NC) must complete continuing education every
2 years by - answer The last day of the licensee's birth month in the compliance year.
What is a license suspension period for a second offense of violating state rules
regarding records and reports? - answerUp to 1 year. For the first offense, a person
may have his or her license suspended or revoked for between 1 and 6 months.
Which of the following terms is used to describe a person, other than a viator, that
enters into or effectuates a viatical settlement contract? - answer Viatical settlement
provider.
How long does the grace period last under a standard life policy issued in this state? -
answer31 days. The insured is entitled to a grace period of 31 days for the payment of
any premium due (except for the first payment), during which time the death benefit
coverage will continue in force.
If an insurer accepts premium payments by credit card, who is responsible for paying
the fees charged by a credit card company? - answerInsurer accepting payment. Credit
card payment fees are the responsibility of the insurer. In fact, it is one of the conditions
for permitting the insurer to accept payments by credit card.
A private investigator has been hired by an insurance company to obtain a character
report on an insurance applicant. The investigator contacts the applicant and requests
an interview stating that he is conducting a research for a publication. The applicant
permits the interview and unknowingly gives information that will be used in the
underwriting decision. Which of the following does this scenario describe? -
answerPretext interview. This is where a person, in an attempt to obtain information
about a natural person, pretends to be someone he is not or pretends to represent a
person he is not in fact representing.
If a licensee is convicted of a criminal violation, the licensee's insurance license is -
answerAutomatically suspended.
A top agent for a national insurer is competing in a company contest for a grand prize of
$25,000. The agent found that prospects like getting "rebates" from other consumer
services companies, so the agent decided to pay the applicants first month's premium
as an incentive for buying the policy. This would be considered - answerA rebate or
refund of premiums and is a violation of marketing laws.
, Any inducement offered to the insured in the sale of an insurance policy that is not
specified in the policy is an unlawful practice known as - answerRebating. Both the offer
and acceptance of a rebate are illegal.
How is the Commissioner of Insurance selected for the office? - answerElected in a
general election (by the people) for a 4-year term. This is the chief officer of the
Insurance Department.
Under which of the following circumstances would a pretext interview be permissible? -
answerThe insurer suspects criminal activity and fraud.
What does the Guaranty Association guard against? - answerInsurer insolvency. All
admitted insurers must be a member of the Insurance Guaranty Association as a
condition of their license. The Insurance Guaranty Association is in existence to protect
policyowners and beneficiaries against losses caused by the insolvency of an insurance
company.
When an insurer requires a written proof of loss after notice of such loss has been given
by the insured or beneficiary, the company must - answerFurnish a blank form to be
used for that purpose.
A person who knowingly obtains information about an individual from an agent or the
insurer under false pretenses has committed a(n) - answerClass 1 misdemeanor.
Which of the following must an insurer obtain in order to transact insurance within a
given state? - answerCertificate of Authority.
Authorized insurer - answerInsurer who has received a Certificate of Authority from the
department of insurance to transact insurance in this state.
Business entity - answerA corporation, association, partnership, limited liability
company, limited liability partnership, or other legal entity.
Cease and desist - answerTo stop or discontinue.
Coercion - answerForceful act or threat aimed to influence a person to act against his or
her will.
Commission - answerPayment to the agent by the insurance company for placing
insurance, usually a percentage of the policy premium.
Disclosure - answerRevealed information to help someone make an intelligent and
educated decision.
Exempt - answerNot subject to an obligation.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller julianah420. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £11.78. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now