North Carolina Property & Casualty Insurance License Exam — All Questions
3 questions
Which official regulates insurance and licenses resident property and casualty producers in North Carolina?
- a.The North Carolina Secretary of State
- b.The North Carolina Department of Motor Vehicles
- c.The North Carolina Commissioner of Insurance (Department of Insurance)✓
- d.The North Carolina Utilities Commission
North Carolina regulates insurance through the North Carolina Department of Insurance (NCDOI), led by the elected Commissioner of Insurance. The Commissioner licenses producers and adjusters, reviews forms and rates, and enforces the insurance laws. On the exam, remember that the Commissioner of Insurance, not the Secretary of State or DMV, licenses producers.
A North Carolina producer offers to rebate part of the commission to a client as an inducement to buy a policy. Under North Carolina law this is:
- a.Permitted if the insurer approves
- b.Permitted for commercial clients only
- c.Prohibited rebating✓
- d.Required to be reported but otherwise lawful
Giving any part of the premium or commission, or other valuable consideration not stated in the policy, as an inducement to buy is prohibited rebating under North Carolina's unfair trade practices law and can bring fines and license action by the North Carolina Commissioner of Insurance.
After a North Carolina personal auto or homeowners policy is past its initial underwriting period, an insurer's mid-term cancellation is generally allowed only:
- a.For specific statutory grounds such as nonpayment of premium or fraud, with required advance written notice✓
- b.For any reason, with no notice
- c.Only during the first 24 hours of the policy
- d.Never, once the policy is issued
North Carolina limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment or fraud and requires advance written notice so the insured can replace coverage. The exact notice day-counts are set by statute and can change; verify current figures with the North Carolina Department of Insurance.