North Carolina property and casualty practice exam

1. What are North Carolina's minimum auto liability limits for policies new or renewed on or after July 1, 2025?

1. $25,000 per person, $50,000 per accident, $25,000 property damage
2. $30,000 per person, $60,000 per accident, $25,000 property damage
3. $50,000 per person, $100,000 per accident, $50,000 property damage
4. $100,000 per person, $300,000 per accident, $100,000 property damage

2. Beginning July 1, 2025, which coverage must be included in all new or renewed North Carolina auto policies, according to NCDOI?

1. Collision coverage
2. Rental reimbursement coverage
3. Roadside assistance coverage
4. Underinsured motorist coverage

1. Under G.S. 58-36-85, a North Carolina auto policy may be cancelled for nonpayment of premium with an effective date how long after the notice is mailed?

1. 15 days
2. 10 days
3. 30 days
4. 60 days

2. For a termination of a North Carolina auto policy for a reason other than nonpayment, the effective date must be at least how long after mailing?

1. 15 days
2. 45 days
3. 60 days
4. 30 days

3. In North Carolina's auto termination statute, a refusal by the insurer to renew a policy is:

1. Not regulated
2. Allowed with 10 days' notice
3. Treated as a termination, so the same grounds and notice rules apply
4. Allowed only at the insured's request

4. After receiving a compliant auto termination notice in North Carolina, how long does the insured have to file a request for Department review?

1. 60 days
2. 30 days
3. 3 days
4. 10 days

5. A North Carolina auto termination notice must include a statement that:

1. The policy will be reinstated automatically
2. The insured must reapply within 30 days
3. The insured will receive a full premium refund
4. The insured may be penalized for driving without complying with the state's financial responsibility law, and may ask the Department to review

6. Under G.S. 58-41-15, a North Carolina property or casualty insurer that cancels a policy during the term must give written notice at least how many days before the effective date?

1. 15 days
2. 45 days
3. 60 days
4. 30 days

7. A new (not renewed) North Carolina policy has been in effect fewer than 60 days. Under G.S. 58-41-15, the insurer may cancel it:

1. For any reason with 15 days' notice
2. Only with the insured's consent
3. Only after the first 60 days
4. Only for nonpayment

8. Under the 45-day rule in G.S. 58-41-20, an insurer that will not renew a one-year North Carolina policy must give the insured written notice at least:

1. 45 days before expiration
2. 30 days before expiration
3. 15 days before expiration
4. 60 days before expiration

9. How much advance notice must a North Carolina insurer give when it lowers limits, raises deductibles, or raises rates mid-term without the policyholder's request?

1. 60 days
2. 15 days
3. 45 days
4. 30 days

1. Under G.S. 58-37-35, what is the role of the North Carolina Reinsurance Facility?

1. It writes auto policies directly for the public
2. It sets the rates that all insurers must charge
3. It accepts placements made under Article 37 and reinsures minimum coverages so coverage stays available
4. It pays covered claims of insolvent insurers

2. The North Carolina Insurance Underwriting Association administers the Coastal Property Insurance Pool, which serves as:

1. The market of last resort for property in the beach and coastal area
2. The assigned risk plan for auto insurance
3. The state's workers' compensation fund
4. A rating bureau for homeowners insurance

1. Under G.S. 58-48-35, the North Carolina Insurance Guaranty Association generally pays covered claims of an insolvent insurer up to what amount per claim, with workers' compensation claims as an exception?

1. $100,000
2. Less than $500,000
3. $300,000
4. $1,000,000

2. What is the most the North Carolina Insurance Guaranty Association will pay per policy for return of unearned premium?

1. $50,000
2. $10,000
3. $5,000
4. $1,000

1. North Carolina requires employers to carry workers' compensation insurance or qualify as self-insured once they have how many employees?

1. 3 or more
2. 5 or more
3. 15 or more
4. 1 or more

2. Farm laborers are exempt from North Carolina's workers' compensation requirement when the farm regularly employs fewer than how many full-time, non-seasonal farm laborers?

1. 10
2. 3
3. 25
4. 5

1. Under G.S. 58-63-15(11), claim settlement acts such as failing to act reasonably promptly on claim communications are unfair practices only when committed:

1. By an agent rather than an insurer
2. On a commercial claim
3. With such frequency as to indicate a general business practice
4. Once