NEW NORTH CAROLINA PROPERTY AND
CASUALTY
INSURANCE BEST QUALITY EXAM
QUESTIONS WITH VERIFIED SOLUTIONS
Casualty insurance (Lines) ---- ANSWER----Aviation
Auto
Workers Compensation
Surety
Liability Risk ---- ANSWER----the risk that we will suffer financial loss as a
result of our actions towards others
Personal Lines ---- ANSWER----Property and casualty coverage's that protect
an individual or family
Commercial lines ---- ANSWER----Coverage's designed for businesses
Duties of an insurance agent ---- ANSWER----Selling insurance
Page | 1
,Issuing and countersigning policies
Collecting premiums
Providing a link between the insured and the insurance company
Countersigning ---- ANSWER----Agent signs each new policy prepared by the
company before delivering it to the insured
Field Underwriting ---- ANSWER----Using pre-established criteria to seek out
the type of business that is likely to be acceptable to the company
Quote ---- ANSWER----What the premium for the proposed coverage will be
Agents also have responsibilities toward the insurance company or companies
they represent. Agents must: ---- ANSWER----be loyal to the insurer's interests
and avoid engaging in any business activity that competes or interferes with the
insurer's business;
obey all legal instructions provided by the insurer;
deposit funds belonging to the insurer in a separate account in the insurer's
name;
Page | 2
,perform all duties with the degree of care and skill that a reasonably prudent
person would exercise in the same circumstances;
keep the insurer informed of all facts related to the agency relationship.
Five parts of an insurance contract ---- ANSWER----Declarations
Insuring Agreements
Conditions
Exclusions
Definitions
Declarations (Contain) ---- ANSWER----Name of Insured
Address
Amount of Coverage
Description of Property
Perils covered
Insuring Agreements (Contain) ---- ANSWER----Losses for which the insured
will be indemnified What is covered
What perils covered
Page | 3
, Conditions (Contain) ---- ANSWER----Responsibilities and obligations for both
the insurance company and the insured
Exclusions (Contain) ---- ANSWER----Losses for which the insured is not
covered
Definitions ---- ANSWER----Meaning of certain terms used in the policy
Stock Company (Types of Insurance Companies) ---- ANSWER----Sells stock
to raise money to operate the business, profits are returned to stock holders, not
the insureds
Mutual Company (Types of Insurance Companies) ---- ANSWER----Insureds
are also owners of the company, profits are returned as dividends or discounts
off future payments
Reciprocal Company (Types of Insurance Companies) ---- ANSWER----A
unincorporated group forms together and agrees to share the insurance
responsibly with all other members. Each insurers each other and share the
losses with each other
Page | 4
CASUALTY
INSURANCE BEST QUALITY EXAM
QUESTIONS WITH VERIFIED SOLUTIONS
Casualty insurance (Lines) ---- ANSWER----Aviation
Auto
Workers Compensation
Surety
Liability Risk ---- ANSWER----the risk that we will suffer financial loss as a
result of our actions towards others
Personal Lines ---- ANSWER----Property and casualty coverage's that protect
an individual or family
Commercial lines ---- ANSWER----Coverage's designed for businesses
Duties of an insurance agent ---- ANSWER----Selling insurance
Page | 1
,Issuing and countersigning policies
Collecting premiums
Providing a link between the insured and the insurance company
Countersigning ---- ANSWER----Agent signs each new policy prepared by the
company before delivering it to the insured
Field Underwriting ---- ANSWER----Using pre-established criteria to seek out
the type of business that is likely to be acceptable to the company
Quote ---- ANSWER----What the premium for the proposed coverage will be
Agents also have responsibilities toward the insurance company or companies
they represent. Agents must: ---- ANSWER----be loyal to the insurer's interests
and avoid engaging in any business activity that competes or interferes with the
insurer's business;
obey all legal instructions provided by the insurer;
deposit funds belonging to the insurer in a separate account in the insurer's
name;
Page | 2
,perform all duties with the degree of care and skill that a reasonably prudent
person would exercise in the same circumstances;
keep the insurer informed of all facts related to the agency relationship.
Five parts of an insurance contract ---- ANSWER----Declarations
Insuring Agreements
Conditions
Exclusions
Definitions
Declarations (Contain) ---- ANSWER----Name of Insured
Address
Amount of Coverage
Description of Property
Perils covered
Insuring Agreements (Contain) ---- ANSWER----Losses for which the insured
will be indemnified What is covered
What perils covered
Page | 3
, Conditions (Contain) ---- ANSWER----Responsibilities and obligations for both
the insurance company and the insured
Exclusions (Contain) ---- ANSWER----Losses for which the insured is not
covered
Definitions ---- ANSWER----Meaning of certain terms used in the policy
Stock Company (Types of Insurance Companies) ---- ANSWER----Sells stock
to raise money to operate the business, profits are returned to stock holders, not
the insureds
Mutual Company (Types of Insurance Companies) ---- ANSWER----Insureds
are also owners of the company, profits are returned as dividends or discounts
off future payments
Reciprocal Company (Types of Insurance Companies) ---- ANSWER----A
unincorporated group forms together and agrees to share the insurance
responsibly with all other members. Each insurers each other and share the
losses with each other
Page | 4
