Policy School Practice EXAM 2026-2027 LATEST
UPDATED VERSION QUESTIONS AND ANSWERS
A temporary license is issued for a maximum of how many days in a 12 month period?
A. 30 days
B. 60 days
C. 90 days
D. 180 days - answer>>D
The Commissioner serves a four year term and if a vacancy occurs, the position will:
A. Be filled by a state ranking senior legislator
B. Be filled by the governor
C. Be filled by an experienced insurance agent
D. Not be filled until the next election cycle - answer>>B
Should an agent die in North Carolina, the Commissioner may issue what type of license to the surviving
spouse, next of kin, administrator or executor or employee thereof?
A. Temporary
B. Adjusters
C. Agents
D. Continuation - answer>>A
The Insurance Information and Privacy Protection Act is designed to protect the general public form
abuse in regard to the gathering of personal information practices to all applicants or policyholders in
connections with insurance transactions for all of the following EXCEPT:
,A. In the case for an application for insurance, a notice shall be provided no later than the time of policy
deliver.
B. In the case of a policy reinstatement, or change in insurance benefits, a notice shall be provided no
later than the time a request for a policy reinstatement or change in insurance benefit is received by
the insurance institution
C. In the case of a policy renewal, a notice shall be provided no later than the policy renewal date
D. Information gathered on an insured must be made available to the public - answer>>D
Which of the following sections of an insurance policy states who may be insured in addition to the
named insured:
A. Definition of the insured
B. Obligations of the insurance company
C. Declarations
D. Insuring agreements - answer>>A
Which part of an insurance policy sets the rules of conduct, duties and obligations of the insured and
insurer under the terms of the contract:
A. Conditions
B. Exclusions
C. Declarations
D. Insuring agreement - answer>>A
Information provided by the insured in a proof of loss is considered:
A. A representation
B. An agreement
C. A warranty
D. An assignment - answer>>C
,The conditions section of an insurance contract specifies which of the following:
I. The property location
II. The insurance company's responsibilities
III. The insured's responsibilities
IV. The policy duration
A. I and IV only
B. II and III only
C. I and II only
D. I II III and IV - answer>>B
An insurance contract is:
I. Aleatory
II. Unilateral
III. Adhesive
IV. Conditional
A. I II III IV
B. II III and IV only
C. I and II only
D. I II and IV only - answer>>A
The maximum amount a policy will pay in the event of a loss is called the:
A. Limits of Liability
B. Coinsurance amount
, C. Pro Rata return
D. Deductible - answer>>A
Subrogation may follow which of the following events:
A. An insured collects from her insurance company for damages caused by a third party
B. Firefighters damage the insured's property while putting out a fire
C. Nature damages the insured's property
D. An insured causes damage to her own goods - answer>>A
An apartment dweller would be the focus of:
A. HO-6
B. HO-4
C. HO-1
D. HO-8 - answer>>B
When insurance is written on a dwelling form, each of the following types of property would be insured
under coverage A (dwelling coverage) EXCEPT:
A. A laundry room attached to the dwelling
B. A barn separated from the dwelling by no more than 10 feet
C. Material and supplies used for construction or repair of the dwelling
D. A garage attached to the dwelling - answer>>B
If a dwelling insured under an HO-3 is destroyed by fire, the insured will likely be paid:
A. The market value of the dwelling
B. The assessed value of the dwelling
UPDATED VERSION QUESTIONS AND ANSWERS
A temporary license is issued for a maximum of how many days in a 12 month period?
A. 30 days
B. 60 days
C. 90 days
D. 180 days - answer>>D
The Commissioner serves a four year term and if a vacancy occurs, the position will:
A. Be filled by a state ranking senior legislator
B. Be filled by the governor
C. Be filled by an experienced insurance agent
D. Not be filled until the next election cycle - answer>>B
Should an agent die in North Carolina, the Commissioner may issue what type of license to the surviving
spouse, next of kin, administrator or executor or employee thereof?
A. Temporary
B. Adjusters
C. Agents
D. Continuation - answer>>A
The Insurance Information and Privacy Protection Act is designed to protect the general public form
abuse in regard to the gathering of personal information practices to all applicants or policyholders in
connections with insurance transactions for all of the following EXCEPT:
,A. In the case for an application for insurance, a notice shall be provided no later than the time of policy
deliver.
B. In the case of a policy reinstatement, or change in insurance benefits, a notice shall be provided no
later than the time a request for a policy reinstatement or change in insurance benefit is received by
the insurance institution
C. In the case of a policy renewal, a notice shall be provided no later than the policy renewal date
D. Information gathered on an insured must be made available to the public - answer>>D
Which of the following sections of an insurance policy states who may be insured in addition to the
named insured:
A. Definition of the insured
B. Obligations of the insurance company
C. Declarations
D. Insuring agreements - answer>>A
Which part of an insurance policy sets the rules of conduct, duties and obligations of the insured and
insurer under the terms of the contract:
A. Conditions
B. Exclusions
C. Declarations
D. Insuring agreement - answer>>A
Information provided by the insured in a proof of loss is considered:
A. A representation
B. An agreement
C. A warranty
D. An assignment - answer>>C
,The conditions section of an insurance contract specifies which of the following:
I. The property location
II. The insurance company's responsibilities
III. The insured's responsibilities
IV. The policy duration
A. I and IV only
B. II and III only
C. I and II only
D. I II III and IV - answer>>B
An insurance contract is:
I. Aleatory
II. Unilateral
III. Adhesive
IV. Conditional
A. I II III IV
B. II III and IV only
C. I and II only
D. I II and IV only - answer>>A
The maximum amount a policy will pay in the event of a loss is called the:
A. Limits of Liability
B. Coinsurance amount
, C. Pro Rata return
D. Deductible - answer>>A
Subrogation may follow which of the following events:
A. An insured collects from her insurance company for damages caused by a third party
B. Firefighters damage the insured's property while putting out a fire
C. Nature damages the insured's property
D. An insured causes damage to her own goods - answer>>A
An apartment dweller would be the focus of:
A. HO-6
B. HO-4
C. HO-1
D. HO-8 - answer>>B
When insurance is written on a dwelling form, each of the following types of property would be insured
under coverage A (dwelling coverage) EXCEPT:
A. A laundry room attached to the dwelling
B. A barn separated from the dwelling by no more than 10 feet
C. Material and supplies used for construction or repair of the dwelling
D. A garage attached to the dwelling - answer>>B
If a dwelling insured under an HO-3 is destroyed by fire, the insured will likely be paid:
A. The market value of the dwelling
B. The assessed value of the dwelling
