1|Page
NORTH CAROLINA PROPERTY AND CASUALTY
INSURANCE EXAM NEWEST 2026 COMPLETE 450
QUESTIONS AND CORRECT ANSWERS|| VERIFIED
EXAM!!! (VERIFIED ANSWERS) |ALREADY GRADED
A+||NEWEST EXAM VERSION!!!
What is rebating in the context of insurance? - ANSWER-
Offering a portion of the premium back to the insured as
an inducement to purchase insurance.
What does the Commissioner have the power to do
regarding trade practice complaints? - ANSWER-
Investigate complaints and issue a Cease and Desist
order if just cause is found.
What are the penalties for violating a Cease and Desist
order? - ANSWER-Penalties of up to $5,000 per violation,
benefiting public schools in the county of the violation.
What does the Insurance Information and Privacy
Protection Act aim to protect? - ANSWER-The confidential
nature of information processed in the insurance industry.
What type of information is exempt from the Insurance
Information and Privacy Protection Act? - ANSWER-
,2|Page
Information collected from public records of a
governmental authority.
What prompted the National Association of Insurance
Commissioners to propose a model privacy law? -
ANSWER-Research indicating that the insurance industry
is a major collector of personal information.
What is the significance of the federal privacy acts in
relation to the insurance industry? - ANSWER-They
establish consumer rights regarding personal information
collected by the insurance industry.
What constitutes an Adverse Underwriting Decision? -
ANSWER-An Adverse Underwriting Decision occurs when
an insurance application is rejected, an existing policy is
terminated, coverage is placed with a residual market
mechanism, coverage is not placed with a requested
company, or a higher rate is charged based on differing
information from the insured.
Is charging a higher premium due to an increase in hazard
considered an Adverse Underwriting Decision? -
ANSWER-No, charging a higher premium due to an
increase in hazard is not considered an Adverse
Underwriting Decision.
,3|Page
What are Pretext Interviews in the context of insurance? -
ANSWER-Pretext Interviews are conducted when an
individual does not reveal their identity or poses as
someone else to obtain information, and they are
prohibited except in claims investigations with reasonable
suspicion of fraud or material misrepresentation.
What documents are required by the Privacy Act prior to
collecting confidential information? - ANSWER-The
Privacy Act requires the execution and/or delivery of two
documents: the Notice of Information Practices and the
Disclosure Authorization Form.
What is the purpose of the Notice of Information
Practices? - ANSWER-The Notice of Information Practices
summarizes the applicant's rights under the act, including
the right to know what information was gathered and the
right to dispute inaccurate information.
When must the Notice of Information Practices be
provided to the applicant? - ANSWER-It must be provided
no later than at the time of policy delivery when personal
information is collected from the applicant or public
records, or at the time of collection when information is
from other sources.
, 4|Page
What does the Disclosure Authorization Form do? -
ANSWER-The Disclosure Authorization Form grants
permission for the insurance company to obtain and/or
release specified information from specified persons.
What is the maximum effective time period for the
Disclosure Authorization Form in property and casualty
insurance? - ANSWER-The maximum effective time period
is 12 months.
What responsibilities do agents and companies have after
an Adverse Underwriting Decision? - ANSWER-They must
provide specific reasons for the decision, summarize the
applicant's rights regarding the information, and respond
to written requests and disputes within specified
timeframes.
What is the timeframe for a company to respond to a
written request for reasons behind an Adverse
Underwriting Decision? - ANSWER-The company has 21
business days to respond if the request is submitted within
90 days.
NORTH CAROLINA PROPERTY AND CASUALTY
INSURANCE EXAM NEWEST 2026 COMPLETE 450
QUESTIONS AND CORRECT ANSWERS|| VERIFIED
EXAM!!! (VERIFIED ANSWERS) |ALREADY GRADED
A+||NEWEST EXAM VERSION!!!
What is rebating in the context of insurance? - ANSWER-
Offering a portion of the premium back to the insured as
an inducement to purchase insurance.
What does the Commissioner have the power to do
regarding trade practice complaints? - ANSWER-
Investigate complaints and issue a Cease and Desist
order if just cause is found.
What are the penalties for violating a Cease and Desist
order? - ANSWER-Penalties of up to $5,000 per violation,
benefiting public schools in the county of the violation.
What does the Insurance Information and Privacy
Protection Act aim to protect? - ANSWER-The confidential
nature of information processed in the insurance industry.
What type of information is exempt from the Insurance
Information and Privacy Protection Act? - ANSWER-
,2|Page
Information collected from public records of a
governmental authority.
What prompted the National Association of Insurance
Commissioners to propose a model privacy law? -
ANSWER-Research indicating that the insurance industry
is a major collector of personal information.
What is the significance of the federal privacy acts in
relation to the insurance industry? - ANSWER-They
establish consumer rights regarding personal information
collected by the insurance industry.
What constitutes an Adverse Underwriting Decision? -
ANSWER-An Adverse Underwriting Decision occurs when
an insurance application is rejected, an existing policy is
terminated, coverage is placed with a residual market
mechanism, coverage is not placed with a requested
company, or a higher rate is charged based on differing
information from the insured.
Is charging a higher premium due to an increase in hazard
considered an Adverse Underwriting Decision? -
ANSWER-No, charging a higher premium due to an
increase in hazard is not considered an Adverse
Underwriting Decision.
,3|Page
What are Pretext Interviews in the context of insurance? -
ANSWER-Pretext Interviews are conducted when an
individual does not reveal their identity or poses as
someone else to obtain information, and they are
prohibited except in claims investigations with reasonable
suspicion of fraud or material misrepresentation.
What documents are required by the Privacy Act prior to
collecting confidential information? - ANSWER-The
Privacy Act requires the execution and/or delivery of two
documents: the Notice of Information Practices and the
Disclosure Authorization Form.
What is the purpose of the Notice of Information
Practices? - ANSWER-The Notice of Information Practices
summarizes the applicant's rights under the act, including
the right to know what information was gathered and the
right to dispute inaccurate information.
When must the Notice of Information Practices be
provided to the applicant? - ANSWER-It must be provided
no later than at the time of policy delivery when personal
information is collected from the applicant or public
records, or at the time of collection when information is
from other sources.
, 4|Page
What does the Disclosure Authorization Form do? -
ANSWER-The Disclosure Authorization Form grants
permission for the insurance company to obtain and/or
release specified information from specified persons.
What is the maximum effective time period for the
Disclosure Authorization Form in property and casualty
insurance? - ANSWER-The maximum effective time period
is 12 months.
What responsibilities do agents and companies have after
an Adverse Underwriting Decision? - ANSWER-They must
provide specific reasons for the decision, summarize the
applicant's rights regarding the information, and respond
to written requests and disputes within specified
timeframes.
What is the timeframe for a company to respond to a
written request for reasons behind an Adverse
Underwriting Decision? - ANSWER-The company has 21
business days to respond if the request is submitted within
90 days.
