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North Carolina 2025 Property Insurance Study: Multiple Choice Questions and Answers, Exams of Property Law

A series of multiple choice questions and answers related to property insurance in north carolina. It covers various aspects of insurance, including dwelling policies, homeowners policies, flood insurance, and licensing requirements for insurance agents. The questions and answers provide insights into the key concepts and regulations surrounding property insurance in the state.

Typology: Exams

2024/2025

Available from 11/04/2024

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North Carolina 2025 Property Insurance Study
With Certified Questions & 100% Verified
Correct Answers/(GRADED A+) 100%
Guaranteed Success
Which policy covers mobile homes liability, theft, and flood?
A)Mobile home package policy.B)DP-1.C)Endorsed HO-2 policy.D)Unendorsed HO-3 policy. -
โœ”โœ”A
An insured that needs coverage for her home and its contents against loss caused by
earthquake can obtain it with:
A)An unendorsed Dwelling policy.B)Either a separate Earthquake policy or a DP/HO with an
Earthquake
endorsement attached.C)An unendorsed Homeowners policy.D)A Commercial Property
coverage form. - โœ”โœ”B
The Rate Bureau shall maintain and furnish to the Commissioner statistics on earnings derived
by member companies from the investment of unearned premium, loss, and loss expense
reserves on non-fleet private passenger motor vehicle insurance policies written in this State on
a frequent time schedule. What is that time schedule?
A)Semi-annually.B)Annually.C)Three months.D)Six months. - โœ”โœ”B
Tim gave Bob a $75 gift certificate for buying insurance from him this is called?
A)Twisting.B)Rebating.C)Defamation.D)Good Business. - โœ”โœ”B
What law gives consumers recourse if they are denied insurance on the basis of information
contained in their credit reports?
A)Assigned Risk Law.B)Fair Credit Reporting Act.C)Contributory Negligence Act.D)Absolute
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North Carolina 2025 Property Insurance Study

With Certified Questions & 100% Verified

Correct Answers/(GRADED A+) 100%

Guaranteed Success

Which policy covers mobile homes liability, theft, and flood? A)Mobile home package policy.B)DP-1.C)Endorsed HO- 2 policy.D)Unendorsed HO- 3 policy. - โœ”โœ”A An insured that needs coverage for her home and its contents against loss caused by earthquake can obtain it with: A)An unendorsed Dwelling policy.B)Either a separate Earthquake policy or a DP/HO with an Earthquake endorsement attached.C)An unendorsed Homeowners policy.D)A Commercial Property coverage form. - โœ”โœ”B The Rate Bureau shall maintain and furnish to the Commissioner statistics on earnings derived by member companies from the investment of unearned premium, loss, and loss expense reserves on non-fleet private passenger motor vehicle insurance policies written in this State on a frequent time schedule. What is that time schedule? A)Semi-annually.B)Annually.C)Three months.D)Six months. - โœ”โœ”B Tim gave Bob a $75 gift certificate for buying insurance from him this is called? A)Twisting.B)Rebating.C)Defamation.D)Good Business. - โœ”โœ”B What law gives consumers recourse if they are denied insurance on the basis of information contained in their credit reports? A)Assigned Risk Law.B)Fair Credit Reporting Act.C)Contributory Negligence Act.D)Absolute

Liability Law. - โœ”โœ”B

An agent must hold which of the following licenses in order to sell Accident and Health insurance? A)Property and Liability.B)Credit Life, Accident and Health.C)Travel Accident.D)Accident, Sickness and Health insurance. - โœ”โœ”D Which endorsement provides coverage if the Coverage A amount is not enough to replace the dwelling, the insurer will automatically increase A to provide the full replacement cost of the dwelling? A)Guaranteed replacement cost.B)Post Assessment Guaranty.C)Replacement Cost.D)Actual Cash Value. - โœ”โœ”A How many renters are permitted under a HO3 policy? A)6.B)4.C)3.D)- 0 -. - โœ”โœ”D Assume the following items were stolen from the insured's home. Which one of these losses would be fully covered under Coverage C of the Homeowners policy, assuming the loss was for the full value of the property described? A)A $1,000 emerald braceletB)A $3,000 mink stoleC)$500 in cash.D)A canoe valued at $1,500. - โœ”โœ”A Which term below means "Take it or leave it?" It is where one party has no negotiation ability with the wording in the insurance contract. A)Unilateral.B)Adhesion.C)Aleatory.D)Broker. - โœ”โœ”B Which of the following applicants are exempt from the licensing requirement to pass a written examination?

A)An applicant for license as a Property and Liability.B)An applicant for license as a Life and Health agent.C)An applicant for license as a Motor Vehicle Damage Appraiser.D)An applicant for a license as a Medicare Supplement agent. - โœ”โœ”C Where on a Farmowners' policy is the liability section? A)Conditions section.B)Section I.C)Section II.D)Section III. - โœ”โœ”C The contract for transferring the risk of loss from an insured to an insurer is called what? A)Insurance.B)Insurable interest.C)Risks.D)Moral hazard. - โœ”โœ”A Jane borrows $2,000 to pay her mortgage from the bank account where she keeps her client's premium payments. In essence she's stealing, what's she legally guilty of? A)A misdemeanor.B)A felony.C)Borrowing money.D)Fraud. - โœ”โœ”B Which term below describes a single limit of insurance for all property at multiple locations, it is known as? A)Named peril form.B)Special form.C)Blanket coverage.D)Specific coverage. - โœ”โœ”C Joan's home sustains $10,000 damage when it is struck by lightning. The home is insured under a Homeowners policy for $90,000. At the time of the loss, the home's replacement cost is $150,000. How much will Joan's Homeowners' policy pay for this loss? A)$6,000.B)$90,000.C)$10,000.D)$7,500. - โœ”โœ”A In a Building and Personal Property policy which of the following property is covered? A)The salt water fish.B)Paved surfaces.C)Contraband.D)A customer's coat that was placed in a coat check room. - โœ”โœ”D

A thief breaks into John's home and steals his wife's $10,000 diamond earrings, $15,000 mink coat and $1,000 out of John's locked safe. How much is John's unendorsed Homeowners' policy going to pay for the loss?A)$1,700.B)$3,000.C)$25,000 since the safe was locked the money was not insured.D)$26,000. - โœ”โœ”A Which Builder's Risk policy has a specialized contract whereby there is an increase in the limit of liability on the policy as more construction is reported on the project? A)Business and Personal Property form.B)Building and Personal Property form.C)Reported Value Basis.D)Completed Value Basis. - โœ”โœ”C To qualify for a license as an insurance agent, an applicant must do all of the following EXCEPT? A)Make application on the form prescribed by the Commissioner.B)Be deemed by the Commissioner to be competent, trustworthy and financially responsible.C)Willfully violate the insurance laws of this or any other state.D)Be at least 18 years of age. - โœ”โœ”C Personal injury is all of the following EXCEPT? A)False arrest, malicious prosecution, or willful detention.B)Libel, slander, or defamation of character.C)Invasion of privacy, wrongful eviction, or entry.D)Bodily injury, sickness, disease or death. - โœ”โœ”D The Homeowners form that provides open peril coverage on the dwelling and broad coverage on personal property is the: A)HO-2.B)HO-3.C)HO-4.D)HO-6. - โœ”โœ”B To become a Broker in North Carolina requires a bond of?

A)$25,000.B)$20,000.C)$15,000.D)$10,000. - โœ”โœ”C

Which of the following is responsible for licensing insurance agents? A)NAIC.B)State Insurance Departments.C)Better Business Bureau.D)FAIR Bureau. - โœ”โœ”B The insured has a $1,000,000 Personal Umbrella policy with a retention limit of $5,000. The insured suffers a $15,000 loss that is excluded by both the underlying policy and the Umbrella. How much of this loss would be paid under the umbrella? A)$15,000.B)$10,000.C)$5,000.D)$- 0 - - โœ”โœ”D The HO- 3 with the HO- 15 endorsement attached provides A)Open peril coverage for the dwelling and broad coverage for personal property.B)Basic coverage for both the dwelling and personal property.C)Broad coverage for both the dwelling and personal property.D)Open peril coverage for both the dwelling and personal property. - โœ”โœ”D Which Homeowners endorsement is used to schedule separate coverage for one or more of nine categories of personal property? A)Personal Property Replacement Cost.B)Personal Property.C)Special Personal Property Coverage.D)Scheduled Personal Property. - โœ”โœ”D An individual who rents an apartment can obtain broad coverage for personal property in the apartment under which Homeowner's form? A)HO-15.B)HO-6.C)HO-4.D)HO-2. - โœ”โœ”C

the Commissioner can do all of the following EXCEPT? A)Adopt rules.B)Be a member of the NAIC.C)Make laws.D)Revoke an agent's license. - โœ”โœ”C The permits an insurer to transact insurance in North Carolina. A)Agent's agreement.B)Certificate of authority.C)Agent's appointment.D)Binder. - โœ”โœ”B The insured's home is covered by a DP-3. What is the MINIMUM amount of Coverage A that the insured must purchase to qualify for replacement cost coverage? A)100% of the home's purchase price.B)80% of the home's purchase price.C)100% of the home's replacement value.D)80% of the home's replacement value. - โœ”โœ”D If an agent moves his home to a new address in the same city how long does s/he have to notify DOI? A)60 days.B)30 days.C)25 days.D)10 days. - โœ”โœ”D What is the purpose of the Object Definitions forms in a Boiler and Machinery policy? A)It identifies the coverage parts of the policy.B)It identifies the objects covered by the policy.C)It identifies the Common Policy Conditions of the policy.D)It identifies the Common Policy Declarations of the policy. - โœ”โœ”B The Commissioner may do all of the following EXCEPT? A)Examine the books and records of agents and insurers.B)Make insurance regulations (law.) C)Promulgate insurance law.D)Administer oaths. - โœ”โœ”B

A policy which specifically states the amount of insurance for each type of property at a given location is known as? A)Named peril form.B)Special form.C)Blanket coverage.D)Specific coverage. - โœ”โœ”D Which of the following perils is covered by the HO-2 and HO-3? A)Nuclear hazard.B)Falling objects.C)Mysterious disappearance.D)Flood. - โœ”โœ”B What does the term "vacancy" mean? A)There are no people living at the property.B)There are no people nor their contents at the property.C)There are people living at the property, but they are out to dinner.D)There are people living at the property, but their contents are not there. - โœ”โœ”B