NORTH CAROLINA PROPERTY AND
CASUALTY STATE TEST BANK 2026
COMPREHENSIVE QUESTIONS AND
SOLUTIONS VERIFIED
◉ All of the following are true for resident North Carolina agents:
Answer: •Pay taxes in North Carolina
•At least age 18
•Pass the required exam
◉ Which of the following would obtain a temporary license? Answer:
Executor of estate of resident agent
◉ Misrepresenting a policy to convince someone to replace it is called:
Answer: Twisting
◉ Under contract law, the actions by a party may intentionally and
voluntarily give up a known right. When this occurs, it is known as
creating a: Answer: Waiver
◉ Before any action against an agent's license may be taken the agent
must: Answer: Be given the opportunity to be heard
,◉ An agent in North Carolina must report a change of residency within:
Answer: 10 days
◉ As of 2010 if an agent has only one license, he must complete
continuing education in the following manor: Answer: 24 hours on a
biennial basis
◉ If an insured changes his payment plan from monthly to annually,
what happens to the total premium? Answer: Decreases
◉ An insurer is attempting to determine insurability of an applicant and
decides to obtain information from several different sources. Which
entity must be notified of the investigation? Answer: The applicant
◉ Which of the following is not an essential element of an insurance
contract? Answer: Incompetent parties
◉ The dwelling DP-3 automatically includes all of the following:
Answer: •Coverage A-Dwelling
•Coverage B-Other Structures @10%
•Coverage D- Fair Rental Value @10%
◉ The dwelling DP-3 automatically includes all of the following
EXCEPT: Answer: Coverage C -Personal Property @ 50%
, ◉ Agent Z takes an application for a policy and accepts a check for the
first premium. The application and check are mailed to the insurer, who
discovers the check is not signed. When will coverage for the policy go
into effect? Answer: When the policy is issued, delivered, and the
premium is paid
◉ Which of the following is true about examination of agent records by
the Bureau? Answer: They may be disclosed at any time
◉ G is on the way to the office to turn in an insurance application that
he completed last night. He suddenly discovers that the applicant made
out the check to the agent. What should the agent do? Answer:
Immediately return the check to the applicant
◉ If an agent mixes client funds with his own, the first thing the Bureau
will probably do is: Answer: Issue a cease and desist order
◉ Giving the prospect anything of value as a condition of the sale is
called: Answer: Rebating
◉ A Third Party Administrator of a self-insured worker's compensation
plan does all the following: Answer: •Enroll the group members
•collect premiums from group members
•process claims of group members
CASUALTY STATE TEST BANK 2026
COMPREHENSIVE QUESTIONS AND
SOLUTIONS VERIFIED
◉ All of the following are true for resident North Carolina agents:
Answer: •Pay taxes in North Carolina
•At least age 18
•Pass the required exam
◉ Which of the following would obtain a temporary license? Answer:
Executor of estate of resident agent
◉ Misrepresenting a policy to convince someone to replace it is called:
Answer: Twisting
◉ Under contract law, the actions by a party may intentionally and
voluntarily give up a known right. When this occurs, it is known as
creating a: Answer: Waiver
◉ Before any action against an agent's license may be taken the agent
must: Answer: Be given the opportunity to be heard
,◉ An agent in North Carolina must report a change of residency within:
Answer: 10 days
◉ As of 2010 if an agent has only one license, he must complete
continuing education in the following manor: Answer: 24 hours on a
biennial basis
◉ If an insured changes his payment plan from monthly to annually,
what happens to the total premium? Answer: Decreases
◉ An insurer is attempting to determine insurability of an applicant and
decides to obtain information from several different sources. Which
entity must be notified of the investigation? Answer: The applicant
◉ Which of the following is not an essential element of an insurance
contract? Answer: Incompetent parties
◉ The dwelling DP-3 automatically includes all of the following:
Answer: •Coverage A-Dwelling
•Coverage B-Other Structures @10%
•Coverage D- Fair Rental Value @10%
◉ The dwelling DP-3 automatically includes all of the following
EXCEPT: Answer: Coverage C -Personal Property @ 50%
, ◉ Agent Z takes an application for a policy and accepts a check for the
first premium. The application and check are mailed to the insurer, who
discovers the check is not signed. When will coverage for the policy go
into effect? Answer: When the policy is issued, delivered, and the
premium is paid
◉ Which of the following is true about examination of agent records by
the Bureau? Answer: They may be disclosed at any time
◉ G is on the way to the office to turn in an insurance application that
he completed last night. He suddenly discovers that the applicant made
out the check to the agent. What should the agent do? Answer:
Immediately return the check to the applicant
◉ If an agent mixes client funds with his own, the first thing the Bureau
will probably do is: Answer: Issue a cease and desist order
◉ Giving the prospect anything of value as a condition of the sale is
called: Answer: Rebating
◉ A Third Party Administrator of a self-insured worker's compensation
plan does all the following: Answer: •Enroll the group members
•collect premiums from group members
•process claims of group members
