NC INSURANCE EXAM questions with
verified answers rated A+
What is covered under DP-1? - correct answer ✔✔Basic form not open. Fire,
lightning, internal explosion.
What is covered under DP-2? - correct answer ✔✔Broad form not open. Fire,
lightning, internal explosion, WHARVES, V &MM, BBBICEGOLF.
What is covered under DP-3? - correct answer ✔✔Special form, open peril. Covers
all but theft which needs endorsement.
Debris Removal - correct answer ✔✔Reasonable expense, 5% additional to
coverage limit
Lawns, plants, shrubs, and trees - correct answer ✔✔Caused by peril, limited to
$500/tree or 5% of Coverage A. ($250 for HO-8)
Removal - correct answer ✔✔Covered for 30 days
Reasonable repairs - correct answer ✔✔Coverage provided to protect from
further damage following an insured peril
,Fire Department Service Charge - correct answer ✔✔Will pay up to $500 no
deductible
Credit Card - correct answer ✔✔Will pay up to $500 for loss through counterfeit,
forged check (no deductible)
Glass or Safety Glazing Material - correct answer ✔✔Will pay for breakage of glass
if not vacant for 60 days prior; $100 per loss for HO-8
Collapse - correct answer ✔✔Hidden decay, insect or vermin damage, weight of
contents, equipment, weight of rain
Loss - correct answer ✔✔Awning, fence, patio, deck, pavement, pipes, pool, not
included in collapse unless loss is result of collapse
Loss Assessment/Homeowners Association Fees - correct answer ✔✔$1,000 per
occurrence
Landlord Furnishings - correct answer ✔✔Up to $2,500 for insured's appliance,
carpeting, and other furnishings (rented)
Ordinance or Law - correct answer ✔✔Up to 10% of limit liability for Coverage A
Grave Markers - correct answer ✔✔Pay up to $5,000 if caused by peril insured
against
, What are general property exclusions? - correct answer ✔✔Ordinance or law
(requires tearing down), earth movement (earthquake, mudslide, sinkhole), water
damage (flood, overflow, sewer backup), power failure, neglect, war, nuclear
hazard, intentional loss, government action
NC Motor Vehicle Reinsurance Facility - correct answer ✔✔-created to provide
auto liability, med pay, and uninsured motorist/underinsured motorist coverage to
"eligible risks" who are difficult to place in normal market
-may transfer risk to facility
-ceded premiums = much higher rates and reduced max coversge
Safe Driver Incentive Plan - correct answer ✔✔-Bureau's responsibility
-rates for at fault accidents or moving violation conviction
-surcharges up to 3 years
-convictions must be obtained annually from NCDMV
NC Rate Bureau - correct answer ✔✔-tweak and recommend policy forms and
rates to Commissioner
-residential property w/ no more than 4 units
-rates proposed to be adequate, not excessive and discriminatory
Regulation of Credit Insurance - correct answer ✔✔Credit accident and health
insurance may not be required of any borrower
FAIR PLAN - correct answer ✔✔-facilitate issuance of basic property insurance to
encourage improvement and arrest decline
verified answers rated A+
What is covered under DP-1? - correct answer ✔✔Basic form not open. Fire,
lightning, internal explosion.
What is covered under DP-2? - correct answer ✔✔Broad form not open. Fire,
lightning, internal explosion, WHARVES, V &MM, BBBICEGOLF.
What is covered under DP-3? - correct answer ✔✔Special form, open peril. Covers
all but theft which needs endorsement.
Debris Removal - correct answer ✔✔Reasonable expense, 5% additional to
coverage limit
Lawns, plants, shrubs, and trees - correct answer ✔✔Caused by peril, limited to
$500/tree or 5% of Coverage A. ($250 for HO-8)
Removal - correct answer ✔✔Covered for 30 days
Reasonable repairs - correct answer ✔✔Coverage provided to protect from
further damage following an insured peril
,Fire Department Service Charge - correct answer ✔✔Will pay up to $500 no
deductible
Credit Card - correct answer ✔✔Will pay up to $500 for loss through counterfeit,
forged check (no deductible)
Glass or Safety Glazing Material - correct answer ✔✔Will pay for breakage of glass
if not vacant for 60 days prior; $100 per loss for HO-8
Collapse - correct answer ✔✔Hidden decay, insect or vermin damage, weight of
contents, equipment, weight of rain
Loss - correct answer ✔✔Awning, fence, patio, deck, pavement, pipes, pool, not
included in collapse unless loss is result of collapse
Loss Assessment/Homeowners Association Fees - correct answer ✔✔$1,000 per
occurrence
Landlord Furnishings - correct answer ✔✔Up to $2,500 for insured's appliance,
carpeting, and other furnishings (rented)
Ordinance or Law - correct answer ✔✔Up to 10% of limit liability for Coverage A
Grave Markers - correct answer ✔✔Pay up to $5,000 if caused by peril insured
against
, What are general property exclusions? - correct answer ✔✔Ordinance or law
(requires tearing down), earth movement (earthquake, mudslide, sinkhole), water
damage (flood, overflow, sewer backup), power failure, neglect, war, nuclear
hazard, intentional loss, government action
NC Motor Vehicle Reinsurance Facility - correct answer ✔✔-created to provide
auto liability, med pay, and uninsured motorist/underinsured motorist coverage to
"eligible risks" who are difficult to place in normal market
-may transfer risk to facility
-ceded premiums = much higher rates and reduced max coversge
Safe Driver Incentive Plan - correct answer ✔✔-Bureau's responsibility
-rates for at fault accidents or moving violation conviction
-surcharges up to 3 years
-convictions must be obtained annually from NCDMV
NC Rate Bureau - correct answer ✔✔-tweak and recommend policy forms and
rates to Commissioner
-residential property w/ no more than 4 units
-rates proposed to be adequate, not excessive and discriminatory
Regulation of Credit Insurance - correct answer ✔✔Credit accident and health
insurance may not be required of any borrower
FAIR PLAN - correct answer ✔✔-facilitate issuance of basic property insurance to
encourage improvement and arrest decline
