NC Insurance Content Outlines by wulinqing

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									           North Carolina                                   Examination Content Outlines
       Insurance Supplement                                              Effective Date: February 28, 2011



                                                                              II.    ANNUITIES .....................................................................5
                  NORTH CAROLINA                                                     A. The annuity principle
                    LIFE AGENT                                                       B. Annuity features
                  CONTENT OUTLINE                                                       1. Premium paying method
            (55 questions plus 5 pretest questions)                                        a. Single premium
This examination will test topics listed on the following content                          b. Installment premium: fixed/flexible/periodic
outline and is composed of fifty-five (55) four-option, multiple                        2. Determination of benefits
choice questions. Up to five (5) additional questions may be on the                        a. Fixed
test. These questions are used to gather statistical data and will not                     b. Variable
affect your examination scores.                                                            c. Equity Index
                                                                                        3. When benefits begin
I.   TYPES OF INDIVIDUAL LIFE INSURANCE ................. 17
                                                                                           a. Immediate
     A. Term
                                                                                           b. Deferred
        1. General nature
                                                                                        4. Number of lives of benefit payment
        2. Basic types of term contracts
                                                                                           a. Single
        3. Special features
                                                                                           b. Joint
           a. Renewability
                                                                                           c. Joint and Last survivor
           b. Convertibility
                                                                                        5. Guarantee prior to annuity starting date
     B. Whole life insurance
                                                                                        6. Guarantee of minimum total benefit
     C. Endowment
                                                                                           a. Straight (pure) life annuity
     D. Premium variations
                                                                                           b. Annuity with period certain
        1. Single
                                                                                           c. Cash or refund installment annuity
        2. Level (continuous/straight)
        3. Adjustable/Flexible                                                III.   POLICY PROVISIONS, OPTIONS, AND OTHER
        4. Modified                                                                  FEATURES .....................................................................11
        5. Graded                                                                    A. General provisions
        6. Indeterminate (nonguaranteed)                                                1. Insuring agreement
     E. Combination policies and variations in the basic                                2. Ownership clause
        forms                                                                           3. Entire contract clause
        1. Double or triple (multiple) protection                                       4. Incontestable clause
        2. Term riders                                                                  5. Grace period
        3. Family policy/riders                                                         6. Reinstatement clause
        4. Family income                                                                   a. Common requirements
        5. Family maintenance                                                              b. Possible advantages to policyholder
        6. Face amount plus cash value                                                  7. Misstatement of age clause
        7. Face amount plus return of premium                                           8. Assignment
        8. Joint life                                                                      a. Absolute
        9. Last survivor                                                                   b. Collateral
       10. Juvenile                                                                     9. Conversions/Change of plan
       11. Limited benefit                                                             10. Excess interest provision
     F. Non-Traditional                                                                11. Free look provision
        1. Universal life (Adjustable life)                                            12. Withdrawal provisions
           a. General nature                                                           13. Child/spouse/additional insured
           b. Features and Characteristics                                             14. Suicide
              (1) target premium                                                       15. War
              (2) unbundled                                                                a. Results Type
              (3) death benefit options                                                    b. Status Type
              (4) guaranteed values                                                    16. Aviation
              (5) corridor of insurance                                              B. Nonforfeiture values
        2. Interest Sensitive Whole Life (Current                                       1. Nature
           Assumption Life)                                                             2. Options for use of the value


North Carolina Insurance Supplement – Examination Content Outlines                                                                      Effective: February 28, 2011

                                                                         S1
         3. Option applicable if no election made                                             4. Self-Employed Pension Plan (SEP)
      C. Loan provisions                                                                   F. Business uses of life insurance
         1. Nature                                                                            1. Buy and sell agreements
         2. Interest                                                                          2. Key person insurance
            a. Fixed                                                                       G. Social Security survivors, death, and retirement
            b. Variable                                                                       benefits
         3. Automatic premium loan                                                         H. Federal income tax treatment of life insurance
      D. Right to defer loan or payment of cash value                                         and annuity premiums, proceeds, dividends,
      E. Dividends                                                                            and withdrawals
         1. Nature of dividends                                                            I. Legal concepts
         2. Options for the use of dividends                                                  1. Insurable interest
      F. Settlement options                                                                   2. Misrepresentation and concealment
         1. Options for the disposition of proceeds                                           3. Impersonation
         2. Election                                                                          4. Unilateral
            a. By owner                                                                       5. Adhesion
            b. By beneficiary                                                                 6. Indemnity
      G. Beneficiary provision                                                                7. Aleatory
         1. Beneficiary categories                                                            8. Conditional
            a. Estate vs. named party                                                      J. Cost comparison methods: interest adjusted
            b. Named vs. class                                                                cost vs. traditional net cost
            c. Primary and contingent                                                      K. Formation of the life insurance contract
            d. Revocable vs. irrevocable                                                      1. Application completion
         2. Common disaster and short term survivorship                                       2. Types and uses of initial premium receipts
         3. Uniform Simultaneous Death Act                                                    3. Policy delivery
         4. Changing the beneficiary                                                             a. Modified/amended vs. issued as applied for
            a. Right to change                                                                   b. Nonprepaid vs. prepaid
            b. Methods: filing vs. endorsement                                             L. Variable life, variable universal life, and variable
      H. Premium payment                                                                      annuity
         1. Modes (frequency)                                                                 1. FINRA registration
         2. Effect of nonpayment                                                              2. Values based on mutual funds or other
         3. Mortality charge                                                                     securities
         4. Expense charge
                                                                                      V.   NORTH CAROLINA STATUTES AND REGULATIONS
         5. Interest credit
                                                                                           PERTINENT TO LIFE .....................................................14
         6. Load expense charges
                                                                                           A. Contract of Insurance
            a. Front end
                                                                                              Ref: Article 1 (G.S. 58-1-10)
            b. Rear end                                                                    B. Definitions
      I. Additional rights or optional benefits
                                                                                              Ref: Article 1 (G.S. 58-1-5)
         1. Change of contract
                                                                                           C. Commissioner of Insurance
         2. Accidental death benefit and dismemberment                                        Ref: Article 2 (G.S. 58-2-5, 40, 50, 60, 65, 69, 70, 155,
            benefit
                                                                                              160, 161, 162, 163, 180, 185, 195, 200); 11 NCAC,
         3. Guaranteed insurability
                                                                                              Chapter 19, Section .0103
         4. Waiver of premium                                                              D. General Regulations for Insurance
         5. Waiver of monthly deduction (universal life)
                                                                                              Ref: Article 3 (G.S. 58-3- 25, 30, 40, 115, 120, 130, 135,
         6. Cost of living rider
                                                                                              140, 145)
IV.   OTHER LIFE TOPICS .................................................... 8             E. Licensing of Agents, Brokers, Limited
      A. Types of group contracts                                                             Representatives, and Adjusters
         1. Term, including survivorship                                                      Ref: Article 33 (G.S. 58-33-1, 5, 10, 15, 17, 20, 26, 30,
         2. Credit life                                                                       31, 32, 35, 40, 46, 50, 56, 60, 66, 70, 75, 76, 80, 82, 83,
         3. Mortgage life                                                                     85, 90, 95, 100, 105, 110, 115, 120, 125, 130, 132, 135);
      B. Group underwriting                                                                   11 NCAC 4.0423, 11 NCAC, Chapter 4, Section .0423
      C. Master policy and certificates                                                    F. Insurance Information & Privacy Protection Act
      D. Group Conversion                                                                     Ref: Article 39 (G.S. 58-39-5 through 58-39-120)
      E. Tax qualified (sheltered) retirement plans                                        G. Unfair Trade Practices
         1. Individual retirement account (IRA)                                               Ref: Article 63 (G.S. 58-63-15, 20, 50)
         2. Tax sheltered annuity (TSA)                                                    H. False Pretenses and Cheats
         3. Keogh Plans                                                                       Ref: Article 19 (G.S. 14-100)


North Carolina Insurance Supplement – Examination Content Outlines                                                                      Effective: February 28, 2011

                                                                                 S2
     I.   Continuing Education                                                      c. Accidental death and dismemberment
          Ref: 11 NCAC, Chapter 6A, Section .0800                               13. Disability benefits in life insurance contracts
     J.   General Regulations of Business                                       14. Business overhead expense
          Ref: Article 58 (G.S. 58-58-1, 5, 10, 15, 20, 22, 25, 30,           B. Basic Medical Expense insurance……………….2
          35, 40, 70, 75, 80, 85, 95, 100, 110, 115, 120, 135 (1) a–             1. Nature and purpose
          d, 170); 11 NCAC, Chapter 4, Section .0423                             2. Insuring agreement and perils covered
     K.   Regulations of Life Insurance Solicitation                             3. Hospitalization expense
          Ref: Article 60 (G.S. 58-60-1, 15, 20, 30, 35)                         4. Surgical expense
     L.   Replacement Regulations                                                5. Other physicians’ charges (regular medical
          Ref: 11 NCAC, Chapter 12, Section .0600                                   expense)
     M.   General Regulations                                                    6. Common exclusions
          Ref: 11 NCAC, Chapter 4, Section .0423 (Ethical                     C. Major Medical insurance…………………………..6
          Standards)                                                             1. Nature and purpose
     N.   Fraternal Benefit Societies                                            2. Covered charges (expenses)
          Ref: Article 24 (G.S. 58-24-1, 75, 160, 165, 180)                      3. Inside (internal) limits
     O.   Life and Health Insurance Guaranty Association                         4. Common exclusions
          Ref: Article 62 (G.S. 58-62-6, 21, 26, 86)                             5. Deductible
     P.   Viaticals                                                                 a. Per injury or sickness vs. cumulative
          Ref: 58-58-205                                                            (e.g., annual)
                                                                                    b. Corridor
                                                                                    c. Common accident/common sickness
         NORTH CAROLINA                                                             d. Family maximum
                                                                                 6. Percentage participation (coinsurance)
 ACCIDENT AND HEALTH OR SICKNESS
                                                                                    a. Nature and purpose
              AGENT                                                                 b. Stop loss feature
        CONTENT OUTLINE                                                          7. Benefit period
            (55 questions plus 5 pretest questions)                              8. Maximum limits
This examination will test topics listed on the following content                   a. Per injury or illness vs. lifetime
outline and is composed of fifty-five (55) four-option, multiple                    b. Unlimited
choice questions. Up to five (5) additional questions may be on the              9. Restoration of used benefits
test. These questions are used to gather statistical data and will not          10. Pre-admission certification
affect your examination scores.                                                 11. Carryover provisions
I.   ACCIDENT & HEALTH INSURANCE POLICIES…...22                                 12. Other benefit features, options, or expenses
     A. Disability income insurance………...…………….7                                    covered
        1. Nature and purpose                                                       a. Maternity
        2. Insuring agreement and perils covered                                    b. Dental
        3. Definition of total disability                                           c. Prescription drug
           a. Own occupation                                                        d. Vision
           b. Any occupation for which the insured is                               e. Dread disease and limited coverage
              reasonably suited                                                     f. Outpatient treatment
           c. Any occupation                                                  D. Comprehensive coverage……………………...….1
           d. Combination definitions                                            1. Basic plan plus major medical
           e. Presumptive disability                                             2. Comprehensive major medical
        4. Partial disability                                                 E. Hospital indemnity policy/rider…………………..1
        5. Residual disability                                                F. Managed Care…………………………..……………5
        6. Recurrent disability                                                  1. Health Maintenance Organization (HMO)
        7. Elimination (waiting) period                                             a. Closed and Open Panel
        8. Probationary period                                                          (1) Staff
        9. Length of coverage (benefit period)                                          (2) Independent Practice Association (IPA)
           a. Short term vs. long term                                              b. Gatekeeper/Primary Care Physician
           b. Accident vs. sickness                                                 c. Concept of managing healthcare expenses
       10. Nonoccupational vs. full coverage                                     2. Preferred Provider Organization (PPO)
       11. Common exclusions                                                        a. In-network healthcare
       12. Other benefit features or options                                        b. Out-of-network healthcare
           a. Cost of living adjustment                                             c. Concept of managing healthcare expenses
           b. Guaranteed insurability option


North Carolina Insurance Supplement – Examination Content Outlines                                              Effective: February 28, 2011

                                                                         S3
II.    ACCIDENT & HEALTH INSURANCE PROVISIONS .... 11                       F. Federal income taxation
       A. Individual policy mandatory provisions                               1. Accident and health insurance premiums
          1. Entire contract                                                   2. Accident and health insurance benefits
          2. Time limit on certain defenses                                 G. Misrepresentation and concealment
          3. Grace period                                                   H. Formation of the health insurance contract
          4. Reinstatement                                                     1. Application completion
          5. Notice of claim                                                   2. Types and uses of receipts
          6. Claim forms                                                       3. Policy delivery
          7. Proof of loss                                                        a. Modified/amended vs. issued as applied for
          8. Time of payment of claims                                            b. Nonprepaid vs. prepaid
          9. Payment of claims
                                                                      IV.   NORTH CAROLINA STATUTES AND REGULATIONS
         10. Physical examination and autopsy
                                                                            PERTINENT TO ACCIDENT & HEALTH .......................14
         11. Legal actions
                                                                            A. Contract of Insurance
         12. Change of beneficiary
                                                                               Ref: Article 1 (G.S. 58-1-10)
       B. Individual policy optional provisions
                                                                            B. Definitions
          1. Change of occupation
                                                                               Ref: Article 1 (G.S. 58-1-5)
          2. Misstatement of age
                                                                            C. Commissioner of Insurance
          3. Other insurance with this insurer
                                                                               Ref: Article 2 (G.S. 58-2-5, 40, 50, 60, 65, 69, 70, 155,
          4. Other Insurance with other insurers
                                                                               160, 161, 162, 163, 180, 185, 195, 200); 11 NCAC,
          5. Relation of earnings to insurance
                                                                               Chapter 19, Section .0103
          6. Unpaid premiums
                                                                            D. General Regulations for Insurance
          7. Conformity with state statute
                                                                               Ref: Article 3 (G.S. 58-3- 25, 30, 40, 115, 120, 130, 135,
          8. Illegal occupation
                                                                               140, 145)
       C. Other provisions
                                                                            E. Licensing of Agents, Brokers, Limited
          1. Preexisting conditions
                                                                               Representatives, and Adjusters
          2. Right to examine (free look)
                                                                               Ref: Article 33 (G.S. 58-33-1, 5, 10, 15, 17, 20, 26, 30,
          3. Consideration
                                                                               31, 32, 35, 40, 46, 50, 56, 60, 66, 70, 75, 76, 80, 82, 83,
          4. Policy continuation
                                                                               85, 90, 95, 100, 105, 110, 115, 120, 125, 130, 132, 135);
             a. Optional renewable
                                                                               11 NCAC 4.0423,11 NCAC, Chapter 4, Section .0423
             b. Conditionally renewable
                                                                            F. Insurance Information & Privacy Protection Act
             c. Guaranteed renewable
                                                                               Ref: Article 39 (G.S. 58-39-5 through 58-39-120)
             d. Noncancelable
                                                                            G. Unfair Trade Practices
          5. Assignment
                                                                               Ref: Article 63 (G.S. 58-63-15, 20, 50)
          6. Premium payment
                                                                            H. False Pretenses and Cheats
             a. Modes (frequency)
                                                                               Ref: Article 19 (G.S. 14-100)
             b. Effect of nonpayment
                                                                            I. Continuing Education
          7. Waiver of premium
                                                                               Ref: 11 NCAC, Chapter 6A, Section .0800
          8. Insuring clause
                                                                            J. General Regulations
          9. Intoxicants and narcotics
                                                                               Ref: Article 50 (G.S. 58-50-5, 20, 25, 26, 30, 35, 40, 45,
III.   OTHER ACCIDENT & HEALTH TOPICS ...................... 8                 56, 57, 61, 62, 63, 65, 70); 11 NCAC, Chapter 4,
       A. Group insurance                                                      Section .0423 (Ethical Standards)
          1. Types of benefits                                              K. Nature of Policies
          2. Group underwriting                                                Ref: Article 51 (G.S. 58-51-1, 5, 10, 15, 16, 20, 25, 30,
          3. Master policy and certificates                                    35, 37, 38, 40, 45, 50, 55, 57, 58, 59, 60, 61, 62, 70,
          4. Nonduplication and coordination of benefits                       75, 80, 81, 85, 90, 95, 100, 105, 110, 115, 116, 120,
             provisions                                                        125)
          5. Eighteen month extension of benefits                           L. Group Health Insurance Continuation and
       B. Approaches related to group insurance                                Conversion Privileges
          1. Blanket coverage                                                  Ref: Article 53; CONTINUATION: (G.S. 58-53-1
          2. MEWA coverage                                                     through 58-53-40); CONVERSION: (G.S. 58-53-45
       C. Social Security disability                                           through 58-53-115)
       D. Accidental death and dismemberment coverage                       M. Fraternal Benefit Societies
          1. Insuring agreements and peril covered                             Ref: Article 24 (G.S. 58-24-1, 75, 160, 165, 180)
          2. Principal (capital) sum                                        N. Life and Health Insurance Guaranty Association
          3. Beneficiary designations                                          Ref: Article 62 (G.S. 58-62-6, 21, 26, 86)
       E. Business uses: the disability buy-out


North Carolina Insurance Supplement – Examination Content Outlines                                                Effective: February 28, 2011

                                                                 S4
                                                                                        a. Policy limit
                   NORTH CAROLINA                                                       b. Actual Cash Value
                                                                                        c. Cost to repair or replace
                   PROPERTY AGENT
                                                                                        d. Pro rata liability
                   CONTENT OUTLINE                                                      e. Interest of the insured
              (55 questions plus 5 pretest questions)                               4. Insurer’s options in the loss settlement
This examination will test topics listed on the following content                   5. Concealment, misrepresentations, fraud
outline and is composed of fifty-five (55) four-option, multiple                    6. Requirements in the event of loss
choice questions. Up to five (5) additional questions may be on the                 7. Appraisal
test. These questions are used to gather statistical data and will not              8. Subrogation
affect your examination scores.                                                     9. Suit against the company
                                                                                   10. Abandonment
I.     TERMS AND CONCEPTS.............................................. 7          11. Waiver
       A. Risk                                                                   B. Basic (DP-1), Broad (DP-2), and Special (DP-3)
       B. Hazard                                                                    dwelling property forms .........................................4
       C. Peril                                                                     (The candidate should be able to compare the major
       D. Economic Loss                                                             features of these forms.)
       E. Indemnity                                                                 1. General nature and eligibility
       F. Insurable Interest                                                        2. Coverage items and other coverages
       G. Deductible                                                                3. Property excluded
       H. Direct loss vs. Indirect loss (loss of use)                               4. Perils covered and excluded
       I. Named peril vs. open peril                                                5. Other conditions and provisions (e.g., loss
       J. Specific vs. blanket coverage                                                 settlement, subrogation)
       K. Property loss valuation                                                   6. Personal Liability and Theft Coverages
          1. Actual Cash Value                                                   C. Homeowner’s policies ............................................12
          2. Replacement cost                                                       Ref: This section is based on the North Carolina Rate
          3. Functional replacement cost                                            Bureau Forms as adapted from the HO-2000 program of
          4. Salvage value                                                          the Insurance Services Offices.
       L. Mortgagee/loss payee                                                      1. Eligibility and forms available
       M. Misrepresentation, breach of warranty,                                    2. Definitions
          concealment                                                               3. Section I (The candidate should be able to
       N. Negligence, liability, and supplementary                                      analyze and compare the several Homeowners
          payments                                                                      policies with respect to the following items.)
       O. Bodily injury, property damage, personal injury                               a. Coverage items and additional coverages
       P. Accident/Occurence                                                            b. Property limited or excluded
       Q. Certificate of insurance                                                      c. Perils covered and excluded
       R. Binder                                                                        d. Relationship among amounts of insurance
       S. Endorsement                                                                   e. Loss settlement
       T. Liberalization clause                                                         f. Other conditions
       U. First named insured                                                       4. Section II
       V. Monoline vs. package policies                                                 a. Liability insuring agreement and exclusions
       W. Major classes of policy provisions                                            b. Medical payments insuring agreement and
          1. Declarations                                                                   exclusions
          2. Definitions                                                                c. Additional coverages
          3. Insuring agreements                                                        d. Section II conditions
          4. Exclusions/Waivers                                                     5. Conditions applicable to Sections I and II
          5. Conditions                                                             6. Frequently Used Homeowner endorsements
       X. Insurance                                                                      a. Scheduled personal property (personal
       Y. Application                                                                       articles floater)
       Z. Subrogation                                                                   Ref: HO-04-61
      AA. Adhesion                                                                      b. Personal injury
II.    PERSONAL INSURANCE COVERAGES………… 25                                              Ref: HO-32-82
       A. Standard Fire Policy………………………………4                                             c. Personal property replacement cost
          1. Perils and losses covered and excluded                                     Ref: HO-04-90
          2. Inception/expiration                                                       d. Permitted incidental occupancies
          3. Limitations on amount payable                                              Ref: HO-04-42


North Carolina Insurance Supplement – Examination Content Outlines                                                          Effective: February 28, 2011

                                                                            S5
              e. Watercraft                                                                        a. Agreed value
              Ref: HO-24-75                                                                        b. Inflation guard
               f. Water Back Up and Sump Discharge or                                              c. Replacement cost
                  Overflow                                                                    10. Conditions and provisions (e.g., Vacancy, limits
              Ref: HO-04-84                                                                        of insurance as found in this coverage form. The
              g. Refrigerated property coverage                                                    candidate should also be familiar with ISO’s
              Ref: HO-04-98                                                                        common policy conditions and commercial
              h. Business Pursuits                                                                 property conditions)
              Ref: HO-24-71                                                                        a. Inspection and surveys
              i. Absolute Wind Storm or Hail Exclusion                                      B. Other coverage forms and endorsements
              Ref: HO-32-94                                                                    (The candidate is responsible only for an understanding
          7. North Carolina amendatory endorsements                                            of the general nature of these and how they modify or
              (mandatory)                                                                      tailor coverage to meet specific needs.)
              a. Special provisions HO-32-32                                                   1. Peak season coverage
              b. Home day care business liability exclusions                                   2. Builders risk forms
                  and limited property coverage HO-32-96                                           a. Reporting form
       D. Other personal policies.......................................... 1                      b. Completed value form
          1. Mobile homeowners policy                                                       C. Package policies
       E. National Flood Insurance Program....................... 3                            1. Commercial package policy
          (The candidate is not responsible for differences in the                                 a. General nature
          Flood Program’s treatment of personal exposures and                                      b. Eligibility for package modification
          commercial exposures.)                                                               2. Businessowners policy
          1. Background and Purpose                                                                a. General nature
          2. Programs                                                                              b. Standard and special coverage forms
              a. Emergency                                                                         c. Optional section I coverages
              b. Regular                                                                           d. Liability coverage
              c. Who needs flood insurance                                                  D. Business income coverage form
          3. Flood Maps and Zone Determinations                                                1. General nature
          4. Policies Available                                                                2. Losses covered
          5. Definitions                                                                           a. Business income
          6. General Rules                                                                         b. Business income with extra expense
          7. Rating                                                                                c. Extended Business Income
          8. Claims Handling Process                                                           3. Causes of loss forms (see IV.A.5 above)
          9. Requirements of the Flood Insurance Reform Act                                        including special exclusions applicable to
             of 2004                                                                               business income coverage
         10. Write Your Own Company                                                            4. Coinsurance and business income
       F. Watercraft/yacht ..................................................... ..1               a. Percentages available
          1. Hull coverage                                                                         b. Base to which percentage is applied
                                                                                               5. Loss of business income optional coverages
III.   COMMERCIAL INSURANCE COVERAGES................. 10
                                                                                                   a. Maximum period of indemnity
       A. Commercial Property coverage form
                                                                                                   b. Monthly limit of indemnity
          1. General nature
                                                                                                   c. Agreed value
          2. Business Personal Property (BPP)
                                                                                            E. Extra Expense coverage form
             a. Building
                                                                                               1. General nature
             b. Your business personal property
                                                                                               2. Losses covered
             c. Personal property of others
                                                                                               3. Percentage availability (40/80/100) of face
          3. Property not covered
                                                                                                   amount
          4. Additional coverages
                                                                                            F. Boiler and machinery coverage
          5. Extension of coverages
                                                                                               1. General nature
          6. Causes of loss forms
                                                                                               2. Expediting expenses
             a. Basic
                                                                                               3. Endorsements
             b. Broad
                                                                                            G. Other coverages
             c. Special
                                                                                               1. Farmowners policy
             d. Earthquake
                                                                                            H. Commercial Inland Marine (The candidate is
          7. Coinsurance
                                                                                               responsible only for a general understanding of the
          8. Loss valuation clause
                                                                                               needs these coverages meet.)
          9. Optional coverages


North Carolina Insurance Supplement – Examination Content Outlines                                                                Effective: February 28, 2011

                                                                                       S6
          1.   Bailees customers
          2.   Contractors equipment                                                         NORTH CAROLINA
          3.   Builder’s risk/Installation floater
                                                                                             CASUALTY AGENT
          4.   Motor truck cargo (owner’s form)
          5.   Installation floater
                                                                                             CONTENT OUTLINE
                                                                                       (55 questions plus 5 pretest questions)
IV.   NORTH CAROLINA STATUTES AND REGULATIONS                              This examination will test topics listed on the following content
      PERTINENT TO PROPERTY INSURANCE .................. 13                outline and is composed of fifty-five (55) four-option, multiple
      A. Contract of Insurance                                             choice questions. Up to five (5) additional questions may be on the
         Ref: Article 1 (G.S. 58-1-10)                                     test. These questions are used to gather statistical data and will not
      B. Commissioner of Insurance                                         affect your examination scores.
         Ref: Article 2 (G.S. 58-2-5, 40, 50, 60, 65, 69, 70, 155,
         160, 161, 162, 163, 180, 185, 195, 200); 11 NCAC,                 I.    TERMS AND CONCEPTS .............................................. 7
         Chapter 19, Section .0103                                               A. Risk
      C. General Regulations for Insurance                                       B. Hazard
         Ref: Article 3 (G.S. 58-3-10, 15, 30, 40, 115, 120,                     C. Peril
         130, 135, 140, 145)                                                     D. Economic Loss
      D. Licensing of Agents, Brokers, Limited                                   E. Indemnity
         Representatives and Adjusters                                           F. Deductible
         Ref: Article 33 (G.S. 58-33-1, 5, 10, 15, 17, 20, 26, 30,               G. Misrepresentation, breach of warranty,
         31, 32, 35, 40, 46, 50, 56, 60, 66, 75, 76, 80, 82,                        concealment
         83, 85, 90, 95, 100, 105, 110, 120, 125, 130,                           H. Negligence, liability, and supplementary
         132, 135); 11 NCAC, Chapter 4, Section .0423                               payments
      E. Insurance Information & Privacy Protection Act                          I. Bodily injury, property damage, personal injury
         Ref: Article 39 (G.S. 58-39-5 through 58-39-120)                        J. Accident/Occurrence
      F. Unauthorized Insurers                                                   K. Deposit premium/audit
         Ref: Article 28                                                         L. Liability limits: single, split, aggregate
      G. Unfair Trade Practices                                                  M. Certificate of insurance
         Ref: Article 63 (G.S. 58-63-15, 20, 50)                                 N. Binder
      H. False Pretenses and Cheats                                              O. Endorsement
         Ref: Article 19 (G.S. 14-100)                                           P. Liberalization clause
      I. Continuing Education                                                    Q. First named insured
         Ref: 11 NCAC, Chapter 6A, Section .0800                                 R. Monoline vs. package policies
      J. North Carolina Rate Bureau                                              S. Major classes of policy provisions
         Ref: Article 36 (G.S. 58-36-1, 15, 20, 25, 30, 45, 55, 80)                 1. Declarations
      K. General Regulations of Business                                            2. Definitions
         Ref: Article 43 (G.S. 58-43-5, 10); 11 NCAC, Chapter 4,                    3. Insuring agreements
         Section .0423                                                              4. Exclusions/Waiver
      L. Fire Insurance Policies                                                    5. Conditions
         Ref: Article 44 (G.S. 58-44-1, 5, 30)                                   T. Insurance
      M. Essential Property Insurance for Beach Area                             U. Application
         Property                                                                V. Subrogation
         Ref: Article 45 (G.S. 58-45-1, 5, 10, 15, 35)                     II.   PERSONAL INSURANCE COVERAGES ......................20
      N. Fair Access to Insurance Requirements
                                                                                 A. Personal auto policy (North Carolina Rate
         Ref: Article 46 (G.S. 58-46-1, 5, 10, 15)                                  Bureau Form)
      O. Post Assessment Insurance Guaranty                                         1. General nature and eligibility
         Association                                                                2. Definitions
         Ref: Article 48 (G.S. 58-48-5, 10, 25, 35)                                    a. Named insured
      P. Consumer Division                                                             b. An insured
         Ref: II NCAC, Chapter 4, Subsections .0120, .0121,                            c. Covered automobile
         .0122, .0423, .0429                                                              (1) Non-owned
                                                                                          (2) Temporary substitute
                                                                                    3. Standard coverages, parts A through D (The
                                                                                    candidate should have knowledge of the insuring
                                                                                    agreement, exclusions and other items of the
                                                                                    coverage listed below.)
                                                                                       a. Liability

North Carolina Insurance Supplement – Examination Content Outlines                                                         Effective: February 28, 2011

                                                                      S7
             b. Medical payments                                      C. Workers’ compensation and employers liability
             c. Uninsured motorists/underinsured motorists               insurance
             d. Damage to your auto (physical damage)                    1. Basic coverages provided
             e. Insured’s duties                                            a. Insuring agreements
             f. General provisions                                          b. Limitations and exclusions
          4. Other coverages available                                   2. Other states insurance
             a. Towing and labor                                         3. Insured’s duties if injury occurs
             Ref: NC 03 03                                               4. Premium determination
             b. Extended transportation expenses                         5. Assigned risk plan
             Ref: NC 03 02                                               6. Definitions-Disabilities
             c. Extended non-owned coverage                                   a. total permanent
             Ref: NC 03 06                                                    b. temporary total
             d. Coverage for Damage to Your Auto                              c. temporary partial
             Ref: NC 03 15                                                    d. permanent partial
       B. Other personal policies                                     D. Other coverages
          1. Comprehensive personal liability policy                     1. Surety bonds
       C. Personal umbrella liability                                       a. Parties to the contract of suretyship
          1. General nature                                                 b. Promise of the surety
          2. Underlying coverages                                           c. Types of surety bonds
          3. Self-Insured retention                                      2. Fidelity Bonds
       D. Watercraft/yacht                                                  a. Parties
          1. Liability (protection and indemnity) coverage                  b. Types
                                                                               (1) Individual Bond
III.   COMMERCIAL INSURANCE COVERAGES…….13
                                                                               (2) Name Schedule Bond
       A. General liability insurance
                                                                               (3) Position Schedule Bond
          1. Basic hazards
                                                                               (4) Commercial Blanket Bond
             a. Premises and operations
                                                                               (5) Blanket Position Bond
             b. Products and completed operations
                                                                         3. Commercial umbrella liability
          2. Commercial general liability forms
                                                                            a. General nature
             a. Common policy conditions
                                                                            b. Underlying coverages
             b. Coverage A: bodily injury and property
                                                                            c. Self-insured retention
                damage liability
                                                                      E. Crime coverage forms
                (1) Occurrence
                                                                         1. Loss Sustained vs. Discovery Form
                (2) Claims made
                                                                         2. Employee Theft
             c. Coverage B: personal injury and advertising
                                                                         3. Forgery or Alteration
                injury
                                                                         4. Computer Fraud
             d. Coverage C: medical payments
                                                                         5. Major crime definitions
             e. Supplementary payments
                                                                            a. Employee dishonesty
             f. Who is an insured?
                                                                            b. Burglary
             g. Limits
                                                                            c. Safe Burglary
             h. Definitions
                                                                            d. Robbery
       B. Commercial automobile insurance
                                                                            e. Theft
          1. Business auto coverage form
                                                                      F. Package policies
             a. Types of autos
                                                                         1. Commercial package policy
                (1) Owned
                                                                            a. General nature
                (2) Hired
                                                                            b. Eligibility for package modification
                (3) Non-owned
                                                                         2. Businessowners policy
             b. Standard coverages
                                                                            a. General nature
                (1) Liability
                                                                            b. Standard and special coverage forms
                (2) Physical damage
                                                                            c. Optional section I coverages
                (3) Medical payments
                                                                            d. Liability coverage
                (4) Uninsured motorists/underinsured
                    motorists
          2. Garage liability coverage form and garage-
             keepers insurance (The candidate needs to
             understand to general needs of Garage liability.)



North Carolina Insurance Supplement – Examination Content Outlines                                    Effective: February 28, 2011

                                                                 S8
IV.   NORTH CAROLINA STATUTES AND REGULATIONS
      PERTINENT TO CASUALTY INSURANCE................... 15                              NORTH CAROLINA
      A. Contract of Insurance                                                    MEDICARE SUPPLEMENT/LONG-TERM
         Ref: Article 1 (G.S. 58-1-10)                                                      CARE AGENT
      B. Commissioner of Insurance                                                       CONTENT OUTLINE
         Ref: Article 2 (G.S. 58-2-5, 40, 50, 60, 65, 69, 70, 155,
                                                                                  (50 scoreable questions and 10 pretest questions)
         160, 161, 162, 163, 180, 185, 195, 200); 11 NCAC,
                                                                            This examination will test on topics listed on the following content
         Chapter 19, Section .0103
                                                                            outline and is composed of fifty (50) four-option, multiple-choice
      C. General Regulations for Insurance
                                                                            questions. Ten (10) additional questions will be on the test. These
         Ref: Article 3 (G.S. 58-3-10, 25, 30, 40, 115, 120,
                                                                            questions are used to gather statistical data and will not affect your
         130, 145)
                                                                            examination scores.
      D. Licensing of Agents, Brokers, Limited
         Representatives and Adjusters                                      I.    MEDICARE IN GENERAL ..............................................8
         Ref: Article 33 (G.S. 58-33-1, 5, 10, 15, 17, 20, 26, 30,                A. Terms and concepts
         31, 32, 35, 40, 46, 50, 56, 60, 66, 75, 80, 82, 83, 85, 90,                 1. Federal program
         95, 100, 105, 110, 120, 125, 130, 132, 135); 11 NCAC,                       2. Four parts
         Chapter 4, Section .0423                                                    3. Financing/Premiums
      E. Insurance Information & Privacy Protection Act                                 a. Part A
         Ref: Article 39 (G.S. 58-39-5 through 58-39-120)                               b. Part B
      F. Unauthorized Insurers                                                          c. Part C
         Ref: Article 28                                                                d. Part D
      G. Unfair Trade Practices                                                   B. Enrollment
         Ref: Article 63 (G.S. 58-63-15, 20, 50)                                     1. Eligibility
      H. False Pretenses and Cheats                                                     a. Persons age 65 and over
         Ref: Article 19 (G.S. 14-100)                                                  b. Certain disabled persons
      I. Continuing Education                                                           c. Persons with end-stage renal disease
         Ref: 11NCAC, Chapter 6A, Section .0800                                      2. Part A
      J. North Carolina Rate Bureau                                                  3. Part B
         Ref: Article 36 (G.S. 58-36-1, 15, 20, 25, 30, 45, 55, 65,                  4. Workers age 65 and over
         75)                                                                         5. Initial enrollment period
      K. North Carolina Motor Vehicle Reinsurance                                    6. General enrollment period
         Facility                                                                    7. Special enrollment period
         Ref: Article 37 (G.S. 58-37-1,5, 25, 30, 35, 50, 55, 60)                    8. Working-Employer Group Health Plan
      L. Post Assessment Insurance Guaranty                                       C. Concepts
         Association                                                                 1. Prospective Payment System (PPS)
         Ref: Article 48 (G.S. 58-48-5, 10, 25, 35)                                     a. Diagnosis Related Groups (DRGs)
      M. Motor Vehicle Liability Policy Defined                                      2. Quality Improvement Organization (QIO)
         Ref: (G.S. 20-279.21); 11 NCAC, Chap. 4, Section .0415                         a. Utilization and Review Committee
      N. Cancellation or Nonrenewal of Motor Vehicle                              D. Payment of claims
         Policy                                                                      1. Medicare Administrative Contractor (MAC)
         Ref: (G.S. 20-310)                                                             a..Assignment
      O. Workers’ Compensation Law                                                      b. Approved charges/charge limits
         Ref: Condensed from Chapter 97, General Statutes of                         2. Medicare Conditional Payments (Subrogation)
         North Carolina and produced as a bulletin titled
                                                                            II.   MEDICARE PART A (HOSPITAL INSURANCE)
         “Information about the North Carolina Workers’
                                                                                  ORIGINAL MEDICARE...................................................10
         Compensation Act,” published annually by the North                       A. Inpatient hospital care
         Carolina Industrial Commission.
                                                                                     1. Benefit periods
      P. Consumer Division
                                                                                        a. Definition
         Ref: II NCAC, Chapter 4, Subsections .0120, .0121,                             b. Days 1 through 60
         .0122, .0415, .0423, .0429
                                                                                           (1) Deductible
                                                                                           (2) Nonexhaustible benefit
                                                                                        c. Days 61 through 90
                                                                                           (1) Daily copayment (coinsurance)
                                                                                           (2) Nonexhaustible benefit
                                                                                        d. Days 91 through 150 (lifetime reserve days)
                                                                                           (1) Daily copayment (coinsurance)

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                                                                       S9
                  (2) Exhaustible benefit                                                              11. Preventative services
            2. Covered expenses                                                                      E. Assignment payment method
            3. Exclusions                                                                            F. Medicare Summary Notice
       B.   Skilled Nursing Facility (SNF) care                                                IV.   MEDICARE PART C.......................................................3
            1. Definition                                                                            A. Medicare Advantage
            2. Benefit periods                                                                          1. Health Maintenance Organization (HMOs)
               a. Days 1 through 20                                                                     2. Preferred Provider Organizations (PPOs)
               b. Days 21 through 100                                                                   3. Private Fee for Service Plans (PFFS)
                  (1) Daily copayment (coinsurance)                                                     4. Special Needs Plans
            3. Covered services                                                                      B. Medical Savings Accounts (MSAs)
            4. Exclusions                                                                      V.    MEDICARE PART D.......................................................2
            5. Requirements                                                                          A. Eligibility
       C.   Home health care                                                                         B. Minimum Standards
            1. Definition                                                                            C. Prescription plan options
            2. Conditions for eligibility                                                               1. Stand alone plan
            3. First dollar coverage                                                                    2. Medicare Advantage prescription plans
               a. First Dollar                                                                          3. Employer sponsored retiree plans
               b. Coinsurance                                                                        D. Other group and retirement plans
            4. Requirements                                                                             1. Medicare/Medicaid eligible
            5. Exclusions                                                                               2. Medicare savings plans
       D.   Hospice care
                                                                                               VI.   MEDICARE SUPPLEMENT POLICIES (MEDIGAP)......8
            1. Definition
                                                                                                     A. Eligibility
            2. Benefit periods
                                                                                                     B. Standardized Medicare Supplement Plans
            3. Eligibility
                                                                                                        1. Core benefits
            4. Respite care
                                                                                                        2. Optional benefits
            5. Coinsurance
                                                                                                     C. Renewability
            6. Covered services
                                                                                                        1. Guaranteed renewable
            7. Exclusions
                                                                                                        2. Noncancellable
       E.   Provider claim filing and Medicare Summary
                                                                                                     D. Preexisting conditions
            Notice–Part A
                                                                                                     E. Minimum requirements
       F.   Additional Part A services
                                                                                                        1. Outline of coverage
            1. Psychiatric
                                                                                                        2. Loss ratios
            2. Blood deductible
                                                                                                        3. Required disclosures
               a. Part A
                                                                                                     F. Exclusions
               b. Part B
                                                                                                     G. Marketing and selling of Medigap policies
III.   PART B (MEDICAL INSURANCE) ORIGINAL                                                              1. Premiums
       MEDICARE..................................................................... 7                     a. Attained age
       A. Deductible                                                                                       b. Issue age
       B. Coinsurance                                                                                   2. Compensation
       C. Covered services                                                                              3. Guaranteed Issue
          1. Doctor                                                                                        a. Open enrollment
             a. Exclusions                                                                                 b. Upon leaving Medicare Advantage programs
          2. Outpatient medical services and supplies                                                      c. Upon leaving employer group plans
             a. Exclusions                                                                           H. Statutes and regulations
       D. Other covered services and supplies                                                           1. General statutes
          1. Ambulatory surgical                                                                            Ref: Chapter 58, Article 54
          2. Home health                                                                                2. Rules and regulations
          3. Outpatient physical therapy, occupational                                                      Ref: 11 NCAC 12.0815 through 12.0842
             therapy, and speech pathology
                                                                                               VII. MEDICAID.......................................................................1
          4. Rural health clinic
                                                                                                    A. Definition
          5. Portable diagnostic x-ray
                                                                                                    B. Eligibility
          6. Other diagnostic tests
                                                                                                    C. Administration
          7. Radiation therapy
                                                                                                    D. Spending down
          8. Kidney dialysis and transplants
                                                                                                    E. Spousal impoverishment
          9. Heart transplants
                                                                                                    F. Medicare-Aid
         10. Ambulance transportation
                                                                                                       1. Qualified Medicare Beneficiary (QMB)

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                                                                                         S10
         2. Specified Low-Income Medicare Beneficiary                                  J. Specific vs. blanket coverage
(SLMB)                                                                                 K. Property loss valuation
                                                                                          1. Actual Cash Value
VIII. LONG-TERM CARE POLICIES….................................. 11
                                                                                          2. Replacement cost
      A. Definition
                                                                                          3. Functional replacement cost
      B. Benefits
                                                                                          4. Salvage value
         1. Daily/Monthly benefit
                                                                                       L. Mortgagee/loss payee
         2. Length of benefit period
                                                                                       M. Misrepresentation, breach of warranty,
         3. Levels of care
                                                                                          concealment
             a. Skilled care
                                                                                       N. Negligence, liability, and supplementary
             b. Intermediate care
                                                                                          payments
             c. Custodial care
                                                                                       O. Bodily injury, property damage, personal injury
             d. Home Health Care
                                                                                       P. Accident/Occurence
         4. State mandated benefits
                                                                                       Q. Liability Limits: single and split
         5. Elimination period
                                                                                       R. Certificate of Insurance
      C. Renewability
                                                                                       S. Binder
      D. Additional features
                                                                                       T. Endorsement
         1. Waiver of premium
                                                                                       U. Liberalization clause
         2. Inflation protection
                                                                                       V. Major classes of policy provisions
         3. Nonforfeiture
                                                                                          1. Declarations
         4. Financial or suitability worksheet
                                                                                          2. Definitions
      E. Premiums
                                                                                          3. Insuring agreements
      F. Preexisting conditions
                                                                                          4. Exclusions/Waiver
         1. Six and six provision
                                                                                          5. Conditions
      G. Outline of Coverage and Shopper’s Guide
                                                                                       W. Insurance
      H. Policy Summary
                                                                                       X. Application
      I. Loss ratios
                                                                                       Y. Subrogation
      J. Exclusions
                                                                                       Z. Adhesion
      K. Tax considerations
      L. Long-Term Care market                                                   II.   PERSONAL INSURANCE COVERAGES ......................30
         1. Minimum and maximum ages                                                   A. Standard Fire Policy ...............................................5
      M. Long-Term Care insurance                                                         1. Perils and losses covered and excluded
         Ref: Chapter 58, Article 55; HIPAA                                               2. Inception/expiration
      N. Regulations: Long-Term Care                                                      3. Limitations on amount payable
         Ref: 11 NCAC 12.1002 through 12.1026, 12.0555                                       a. Policy limit
                                                                                             b. Actual Cash Value
                                                                                             c. Cost to repair or replace
               NORTH CAROLINA                                                                d. Pro rata liability
            PERSONAL LINES AGENT                                                             e. Interest of the insured
                                                                                          4. Insurer’s options in the loss settlement
              CONTENT OUTLINE
                                                                                          5. Concealment, misrepresentations, fraud
           (80 questions plus 10 pretest questions)                                       6. Requirements in the event of loss
This examination will test topics listed on the following content                         7. Appraisal
outline and is composed of eighty (80) four-option, multiple choice                       8. Subrogation
questions. Up to ten (10) additional questions may be on the test.                        9. Suit against the company
These questions are used to gather statistical data and will not                         10. Abandonment
affect your examination scores.                                                          11. Waiver
I.   TERMS AND CONCEPTS.............................................. 11               B. Basic (DP-1), Broad (DP-2), and Special (DP-3)
     A. Risk                                                                              dwelling property forms .........................................4
     B. Hazard                                                                            (The candidate should be able to compare the
     C. Peril                                                                             major features of these forms.)
     D. Economic Loss                                                                     1. General nature and eligibility
     E. Indemnity                                                                         2. Coverage items and other coverages
     F. Insurable Interest                                                                3. Property excluded
     G. Deductible                                                                        4. Perils covered and excluded
     H. Direct loss vs. Indirect loss (loss of use)                                       5. Other conditions and provisions (e.g., loss
     I. Named peril vs. Open peril                                                           settlement subrogation)


North Carolina Insurance Supplement – Examination Content Outlines                                                                  Effective: February 28, 2011

                                                                           S11
       6. Personal Liability and Theft Coverages                                                Flood Maps and Zone Determinations
                                                                                               3.
    C. Homeowner’s policies............................................ 15                      Policies and Products Available
                                                                                               4.
       Ref: This section is based on the North Carolina Rate                                    Definitions
                                                                                               5.
       Bureau Forms as adapted from the HO-2000 program of                                      General Rules
                                                                                               6.
       the Insurance Services Offices.                                                          Rating
                                                                                               7.
       1. Eligibility and forms available                                                       Claims Handling Process
                                                                                               8.
       2. Definitions                                                                           Requirements of the Flood Insurance Reform
                                                                                               9.
       3. Section I (The candidate should be able to                                            Act of 2004
           analyze and compare the several Homeowners                                       10. Write Your Own Company
           policies with respect to the following items.)                                 F. Watercraft/yacht ......................................................1
           a. Coverage items and additional coverages                                        1. Hull coverage
           b. Property limited or excluded                                                   2. Liability (protection and indemnity) coverage
           c. Perils covered and excluded                                                 G. Personal umbrella liability .....................................1
           d. Relationship among amounts of insurance                                        1. General nature
           e. Loss settlement                                                                2. Underlying coverages
           f. Other conditions                                                               3. Self-Insured retention
       4. Section II
                                                                                   III.   PERSONAL AUTO POLICY (NORTH CAROLINA
           a. Liability insuring agreement and exclusions
                                                                                          RATE BUREAU FORM) .................................................15
           b. Medical payments insuring agreement and
                                                                                          A. General nature and eligibility
               exclusions
                                                                                          B. Definitions
           c. Additional coverages                                                           1. Named insured
           d. Section II conditions
                                                                                             2. An insured
       5. Conditions applicable to Sections I and II
                                                                                             3. Covered automobile
       6. Frequently Used Homeowner endorsements                                                a. Non-owned
           a. Scheduled personal property (personal
                                                                                                b. Temporary substitute
               articles floater)
                                                                                          C. Standard coverages, parts A through D (The
           Ref: HO-04-61                                                                     candidate should have knowledge of the insuring
           b. Personal injury
                                                                                             agreement, exclusions, and other items of the
           Ref: HO-32-82
                                                                                             coverage listed below.)
           c. Personal property replacement cost                                             1. Liability
           Ref: HO-04-90
                                                                                             2. Medical payments
           d. Permitted incidental occupancies
                                                                                             3. Uninsured motorists/underinsured motorists
           Ref: HO-04-42                                                                     4. Damage to your auto (physical damage)
           e. Watercraft
                                                                                             5. Insured’s duties
           Ref: HO-24-75
                                                                                             6. General provisions
            f. Water Back Up and Sump Discharge or                                        D. Other coverages available
               Overflow
                                                                                             1. Towing and labor
           Ref: HO-04-84
                                                                                                Ref: NC 03 03
           g. Refrigerated property coverage                                                 2. Extended transportation expenses
           Ref: HO-04-98
                                                                                                Ref: NC 03 02
       7. North Carolina amendatory endorsements
                                                                                             3. Extended non-owned coverage
           (mandatory)                                                                          Ref: NC 03 06
           a. Special provisions HO-32-32
                                                                                             4. Coverage for Damage to Your Auto
           b. Home day care business liability exclusions
                                                                                                Ref: NC 03 15
               and limited property coverage HO-32-96
    D. Other personal policies.......................................... 1
       1. Mobile homeowners policy                                                 IV.    NORTH CAROLINA STATUTES AND REGULATIONS
       2. Comprehensive personal liability policy                                         PERTINENT TO PERSONAL LINES .............................24
    E. National Flood Insurance Program....................... 3                          A. Contract of Insurance
       (The candidate is not responsible for differences in                                  Ref: Article 1 (G.S. 58-1-10)
       the Flood Program’s treatment of personal                                          B. Commissioner of Insurance
       exposures and commercial exposures.)                                                  Ref: Article 2 (G.S. 58-2-5, 40, 50, 60, 65, 69, 70, 155,
       1. Background and Purpose                                                             160, 161, 162, 163, 180, 185, 195, 200); 11 NCAC,
       2. Programs                                                                           Chapter 19, Section .0103
           a. Emergency                                                                   C. General Regulations for Insurance
           b. Regular                                                                        Ref: Article 3 (G.S. 58-3-10, 15, 25, 40, 115, 120, 130,
           c. Who needs flood insurance?                                                     135, 140, 145)

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                                                                             S12
     D. Licensing of Agents, Brokers, Limited                                         B.    Hazard
        Representatives, and Adjusters                                                C.    Peril
        Ref: Article 33 (G.S. 58-33-1, 5, 10, 17, 20, 26,                             D.    Economic Loss
        31, 32, 35, 40, 46, 50, 56, 60, 66, 70, 75, 76, 80, 82,                       E.    Indemnity
        83, 85, 95, 100, 105, 110, 115, 120, 125, 130, 132, 135);                     F.    Insurable Interest
        11 NCAC, Chapter 4, Section .0423                                             G.    Deductible
     E. Insurance Information & Privacy Protection Act                                H.    Named peril vs. open peril
        Ref: Article 39 (G.S. 58-39-5 through 58-39-120)                              I.    Specific vs. blanket coverage
     F. Regulation of Credit Insurance                                                J.    Property loss valuation
        Ref: Article 57 (G.S. 58-57-65)                                                     1. Actual cash value
     G. Unfair Trade Practices                                                              2. Replacement cost
        Ref: Article 63 (G.S. 58-63-15, 20, 50)                                             3. Functional replacement cost
     H. False Pretenses and Cheats                                                          4. Salvage value
        Ref: Article 19 (G.S. 14-100)                                                 K.    Mortgagee/loss payee
     I. Continuing Education                                                          L.    Misrepresentation, breach of warranty,
        Ref: 11NCAC, Chapter 6A, Section .0800; 11 NCAC,                                    concealment
        Chapter 4, Section .0423                                                      M.    Negligence, liability, and supplementary
     J. North Carolina Rate Bureau                                                          payments
        Ref: Article 36 (G.S. 58-36-1, 15, 20, 25, 30, 45, 55, 65,                    N.    Bodily injury, property damage, personal injury
        75, 80)                                                                       O.    Accident/Occurence
     K. North Carolina Motor Vehicle Reinsurance                                      P.    Deposit premium/audit
        Facility                                                                      Q.    Liability limits: single, split, aggregate
        Ref: Article 37 (G.S. 58-37-1,5, 25, 30, 35, 50, 55, 60)                      R.    Certificate of insurance
     L. General Regulations of Business                                               S.    Binder
        Ref: Article 43 (G.S. 58-43-5, 10)                                            T.    Endorsement
     M. Fire Insurance Policies                                                       U.    Subrogation
        Ref: Article 44 (G.S. 58-44-1, 5, 30)                                         V.    Liberalization clause
     N. Essential Property Insurance for Beach Area                                   W.    First named insured
        Property                                                                      X.    Monoline vs. package policies
        Ref: Article 45 (G.S. 58-45-1, 5, 10, 15, 35)                                 Y.    Major classes of policy provisions
     O. Fair Access to Insurance Requirements                                               1. Declarations
        Ref: Article 46 (G.S. 58-46-1, 5, 10, 15)                                           2. Definitions
     P. Post Assessment Insurance Guaranty                                                  3. Insuring agreements
        Association                                                                         4. Exclusions/Waivers
        Ref: Article 48 (G.S. 58-48-5, 10, 25, 35)                                          5. Conditions
     Q. Motor Vehicle Liability Policy Defined                                         Z.   Insurance
        Ref: (G.S. 20-279.21); 11 NCAC, Chap. 4, Section .0415                        AA.   Application
     R. Cancellation or Nonrenewal of Motor Vehicle                                   BB.   Adhesion
        Policy                                                                        CC.   Direct loss vs. Indirect loss (loss of use)
        Ref: (G.S. 20-310)                                                            DD.   Release
     S. Consumer Division                                                             EE.   Unilateral
        Ref: II NCAC, Chapter 4, Subsections .0120, .0121,                            FF.   Estopple
        .0122, .0415, .0423, .0429
                                                                                II.   PERSONAL INSURANCE COVERAGES ......................30
                                                                                      A. Standard Fire Policy ...............................................5
                                                                                         1. Perils and losses covered and excluded
                   NORTH CAROLINA                                                        2. Inception/expiration
                     ADJUSTERS                                                           3. Limitations on amount payable
                   CONTENT OUTLINE                                                          a. Policy limit
          (100 questions plus 20 pretest questions)                                         b. Actual cash value
This examination will test on topics listed on the following content                        c. Cost to repair or replace
outline and is composed of one hundred (100) four-option,                                   d. Pro rata liability
multiple-choice questions. Up to twenty (20) additional questions                           e. Interest of the insured
may be on your test. These are used to gather statistical data and                       4. Insurer’s options in loss settlement
will not affect your exam score.                                                         5. Concealment, misrepresentations, fraud
                                                                                         6. Requirements in the event of loss
I.   TERMS AND CONCEPTS.............................................. 7
                                                                                         7. Appraisal
     A. Risk

North Carolina Insurance Supplement – Examination Content Outlines                                                                 Effective: February 28, 2011

                                                                          S13
       8. Subrogation                                                                              Ref: HO-32-94
       9. Suit against the company                                                           7. North Carolina amendatory endorsements
      10. Abandonment                                                                           (mandatory)
      11. Waiver                                                                                a. Special provisions HO-32-32
    B. Basic (DP-1), Broad (DP-2), and special (DP-3)                                           b. Home day care business liability exclusions
       dwelling property forms......................................... 4                          and limited property coverage HO-32-96
       (The candidate should be able to compare the                                       D. Other personal packages .......................................1
       major features of these forms.)                                                       1. Mobile homeowners policy
       1. General nature and eligibility                                                     2. Comprehensive personal liability policy
       2. Coverage items and other coverages                                              E. National Flood Insurance Program (The
       3. Property excluded                                                                  candidate is not responsible for differences in the
       4. Perils covered and excluded                                                        Flood Program’s treatment of personal exposures
       5. Other conditions and provisions (e.g., loss                                        and commercial exposures.) .....................................3
           settlement subrogation)                                                           1. Background and Purpose
       6. Personal Liability and Theft Coverages                                             2. Programs
    C. Homeowners policies............................................. 15                      a. Emergency
       Ref: This section is based on the North Carolina Rate                                    b. Regular
       Bureau Forms as adapted from the HO-2000 program of                                      c. Who needs flood insurance
       the Insurance Services Offices.                                                       3. Flood Maps and Zone Determinations
       1. Eligibility and forms available                                                    4. Policies and Products Available
       2. Definitions                                                                        5. Definitions
       3. Section I (The candidate should be able to                                         6. General Rules
           analyze and compare the several Homeowners                                        7. Rating
           policies with respect to the following items.)                                    8. Claims Handling Process
           a. Coverage items and additional coverages                                        9. Requirements of the Flood Insurance Reform
           b. Property limited or excluded                                                      Act of 2004
           c. Perils covered and excluded                                                   10. Write Your Own Company
           d. Relationship among amounts of insurance                                     F. Watercraft/yacht ......................................................1
           e. Loss settlement                                                                1. Hull coverage
           f. Other conditions                                                               2. Liability (protection and indemnity) coverage
       4. Section II                                                                      G. Personal umbrella liability .....................................1
           a. Liability insuring agreement and exclusions                                    1. General nature
           b. Medical payments insuring agreement and                                        2. Underlying coverages
              exclusions                                                                     3. Self-Insured retention
           c. Additional coverages
                                                                                   III.   PERSONAL AUTO POLICY (NORTH CAROLINA
           d. Section II conditions
                                                                                          RATE BUREAU FORM) .................................................15
       5. Conditions applicable to Sections I and II
                                                                                          A. General nature and eligibility
       6. Frequently used Homeowners endorsements
                                                                                          B. Definitions
           a. Scheduled personal property (personal                                          1. Named insured
              articles floater)
                                                                                             2. An insured
              Ref: HO-04-61
                                                                                             3. Covered automobile
           b. Personal injury                                                                   a. Non-owned
              Ref: HO-24-82
                                                                                                b. Temporary substitute
           c. Personal property replacement cost
                                                                                          C. Standard coverages, parts A through D (The
              Ref: HO-04-90                                                                  candidate should have knowledge of the insuring
           d. Permitted incidental occupancies
                                                                                             agreement, exclusions and other terms of the
              Ref: HO-04-42
                                                                                             coverage listed below.)
           e. Watercraft                                                                     1. Liability
              Ref: HO-24-75
                                                                                             2. Medical payments
           f. Water Back Up and Sump Discharge or
                                                                                             3. Uninsured motorists/underinsured motorists
              Overflow                                                                       4. Damage to your auto (physical damage)
              Ref: HO-04-84
                                                                                             5. Insured’s duties
           g. Refrigerated property coverage
                                                                                             6. General provisions
              Ref: HO-04-98                                                               D. Other coverages available
           h. Business Pursuits
                                                                                             1. Towing and labor
              Ref: HO-24-71
                                                                                                Ref: NC 03 03
           i. Absolute Wind Storm or Hail Exclusion

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         2. Extended transportation expenses                                c. Agreed value
            Ref: NC 03 02                                             D. Extra Expense coverage form
         3. Extended non-owned coverage                                  1. General nature
            Ref: NC 03 06                                                2. Losses covered
         4. Coverage for Damage to your Auto                             3. Percentage availability (40/80/100) of face
            Ref: NC 03 15                                                   amount
                                                                      E. Crime coverage forms
                                                                         1. Loss Sustained vs. Discovery Form
IV.   COMMERCIAL INSURANCE COVERAGES................. 18
                                                                         2. Employee Theft
      A. Building and personal property coverage form
                                                                         3. Forgery or Alteration
         1. General nature
                                                                         4. Computer Fraud
         2. Business personal property (BPP)
                                                                         5. Major crime definitions
             a. Building
                                                                            a. Employee dishonesty
             b. Your business personal property
                                                                            b. Burglary
             c. Personal property of others
                                                                            c. Safe Burglary
         3. Property not covered
                                                                            d. Robbery
         4. Additional coverages
                                                                            e. Theft
         5. Extension of coverages
                                                                      F. Boiler and machinery insurance
         6. Causes of loss forms
                                                                         1. General nature
             a. Basic
                                                                         2. Expediting expenses
             b. Broad
                                                                         3. Endorsements
             c. Special
                                                                      G. General liability insurance
             d. Earthquake
                                                                         1. Basic hazards
         7. Coinsurance
                                                                            a. Premises and operations
         8. Loss valuation
                                                                            b. Products and completed operations
         9. Optional coverages
                                                                         2. Commercial general liability forms
             a. Agreed value
                                                                            a. Common policy conditions
             b. Inflation guard
                                                                            b. Coverage A: bodily injury and property
             c. Replacement cost
                                                                               damage liability
             d. Endorsed optional coverages
                                                                               (1) Occurrence
        10. Conditions and provisions (e.g., Vacancy, limits
                                                                               (2) Claims made
             of insurance as found in this coverage form. The
                                                                            c. Coverage B: personal injury and advertising
             candidate should also be familiar with ISO’s
                                                                               injury
             common policy conditions and commercial
                                                                            d. Coverage C: medical payments
             property conditions.)
                                                                            e. Supplementary payments
             a. Inspection and surveys
                                                                            f. Who is an insured?
      B. Other coverage forms and endorsements (The
                                                                            g. Limits
         candidate is responsible only for an understanding
                                                                            h. Definitions
         of the general nature of these and how they modify
                                                                      H. Commercial Automobile Insurance
         or tailor coverage to meet specific needs.)
                                                                         1. Business auto coverage form
         1. Peak season endorsement
                                                                            a. Types of autos
         2. Builders risk form
                                                                               (1) Owned
      C. Business income coverage form
                                                                               (2) Hired
         1. General nature
                                                                               (3) Non-owned
         2. Losses covered
                                                                            b. Standard coverages
             a. Business Income
                                                                               (1) Liability
             b. Extra expense
                                                                               (2) Physical damage
             c. Extended business income
                                                                               (3) Medical payments
         3. Causes of loss forms (see IV.A.5 above)
                                                                               (4) Uninsured motorists/underinsured
             including special exclusions applicable to
                                                                                   motorist
             business income coverage
                                                                         2. Garage liability coverage form and
         4. Coinsurance and business income
                                                                            garagekeepers insurance (candidate needs to
             a. Percentages available
                                                                            understand general needs of Garage liability)
             b. Base to which percentage is applied
                                                                      I. Workers’ compensation and employers liability
         5. Loss of business income optional coverages
                                                                         insurance
             a. Maximum period of indemnity
                                                                         1. Basic coverages provided
             b. Monthly limit of indemnity
                                                                            a. Insuring agreements

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           b. Limitations and exclusions                                    10. Statute of Limitations
        2. Other states insurance                                        B. Types of Liability
        3. Insured’s duties if injury occurs                                 1. Contributory
        4. Premium determination                                            2. Vicarious
        5. Assigned risk plan                                                3. Strict
        6. Definitions-Disabilities
                                                                   VI.   LOSS/DAMAGE VALUATION…………………….….7-8
           a. total permanent
                                                                         A. Damages
           b. temporary total
                                                                             1. Special
           c. temporary partial
                                                                             2. General
           d. permanent partial
                                                                             3. Punitive Damages
     J. Other coverages
                                                                             4. Material Damage Estimates
        1. Commercial Inland marine (The candidate is
                                                                             5. Diminution of Value
           responsible only for a general understanding of
                                                                         B. Valuation Clause
           the needs these coverages meet.)
                                                                             1. Replacement Cost Provisions
           a. Bailees customers
                                                                             2. Actual Cash Value
           b. Contractors equipment
                                                                             3. Stated Value
           c. Builders risk/ Installation floater
                                                                             4. Reproduction Cost
           d. Motor truck cargo (owner’s form)
                                                                         C. Closing Document
           e. Installation floater
                                                                         D. Closing Report
        2. Surety bonds
           a. Parties to the contract of suretyship                VII. NORTH CAROLINA STATUTES AND REGULATIONS
           b. Promise of the surety                                     PERTINENT TO ADJUSTERS .......................................15
           c. Types of surety bonds                                     A. Contract of Insurance
        3. Fidelity Bonds                                                  Ref: Article 1 (G.S. 58-1-10)
           a. Parties                                                   B. Commissioner of Insurance
           b. Types                                                        Ref: Article 2 (G.S. 58-2-5, 40, 50, 60, 65, 69, 70, 155,
              (1) Individual Bond                                          160, 161, 162, 163, 180, 185, 195, 200); 11 NCAC,
              (2) Name Schedule Bond                                       Chapter 19, Section .0103
              (3) Position Schedule Bond                                C. General Regulations for Insurance
              (4) Commercial Blanket Bond                                  Ref: Article 3 (G.S. 58-3-10, 15, 25, 30, 40, 115, 120,
              (5) Blanket Position Bond                                    130, 135, 140, 145)
        4. Commercial umbrella liability                                D. Licensing of Agents, Brokers, Limited
           a. General nature                                               Representatives, and Adjusters
           b. Underlying coverages                                         Ref: Article 33 (G.S. 58-33-1, 5, 10, 15, 17, 20, 26, 30,
           c. Self-insured retention                                       31, 32, 35, 40, 46, 50, 56, 60, 66, 70, 75, 76, 80, 82, 83,
        5. Farmowners policy                                               105, 110, 115, 120, 125, 130, 132, 135); 11 NCAC,
     K. Package policies                                                   Chapter 4, Section .0423
        1. Commercial package policy                                    E. Insurance Information & Privacy Protection Act
           a. General nature                                               Ref: Article 39 (G.S. 58-39-5 through 58-39-120)
           b. Eligibility for package modification                      F. Unfair Trade Practices
        2. Businessowners policy                                           Ref: Article 63 (G.S. 58-63-15(11), 20, 50)
           a. General nature                                            G. Continuing Education
           b. Standard and special coverage forms                          Ref: 11NCAC, Chapter 6A, Section .0800
           c. Optional section I coverages                              H. North Carolina Motor Vehicle Reinsurance
           d. Liability coverage                                           Facility
                                                                           Ref: Article 37 (G.S. 58-37-1, 5, 25, 30, 35, 50, 55, 60)
V.   LOSS REPORT ……………………………………...7-8                                   I. General Regulations of Business
     A. Essential Elements                                                 Ref: Article 43 (G.S. 58-43-5, 10)
        1. Inception/Expiration Date
                                                                        J. Fire Insurance Policies
        2. Occurrence Date
                                                                           Ref: Article 44 (G.S. 58-44-1, 5, 10, 30)
        3. Identification of Parties Involved                           K. Motor Vehicle Liability Policy Defined
        4. Policy Form/Number
                                                                           Ref: (G.S. 20-279.21)
        5. Description of Loss
                                                                        L. Cancellation or Nonrenewal of Motor Vehicle
        6. Coverages                                                       Policy
        7. Deductible
                                                                           Ref: (G.S. 20-310); 11 NCAC, Chapter 4, Section .0423
        8. Tort/Tort Feasors
                                                                        M. Workers’ Compensation Law
        9. Elements of an Investigation                                    Ref: Condensed from Chapter 97, General Statutes of

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                                                             S16
          North Carolina and produced as a bulletin titled
          “Information about the North Carolina Workers’                                       NORTH CAROLINA
          Compensation Act” published annually by the North                                  SURPLUS LINES AGENT
          Carolina Industrial Commission.)
                                                                                               CONTENT OUTLINE
       N. Consumer Division
                                                                                                       (55 questions)
          Ref: 11 NCAC, Chapter 4, Sections .0417-.0421, .0423,
                                                                             This examination will test on topics listed on the following content
          .0425, .0426
                                                                             outline and is composed of fifty-five (55) four-option, multiple-
                                                                             choice questions.

                                                                             I.    TERMS AND CONCEPTS ..............................................5
                                                                                   A. Risk
              NORTH CAROLINA
                                                                                   B. Hazard
        AUTO PHYSICAL DAMAGE AGENT                                                 C. Peril
              CONTENT OUTLINE                                                      D. Economic loss
                 (25 questions)                                                    E. Indemnity
This examination will test on topics listed on the following content               F. Insurable interest
outline and is composed of twenty-five (25) four-option multiple-                  G. Deductible
choice questions.                                                                  H. Direct loss vs. indirect loss (loss of use)
I.     TERMS AND CONCEPTS                                                          I. Named peril vs. risk of loss
       A. Insurable interest                                                       J. Specific vs. blanket coverage
       B. Deductible                                                               K. Property loss valuation
       C. Property loss valuation                                                     1. Actual cash value
          1. Actual cash value                                                        2. Replacement cost
          2. Market value                                                             3. Functional replacement cost
          3. Replacement cost                                                      L. Mortgage/loss payee
                                                                                   M. Misrepresentation, breach of warranty,
II.    AUTO PHYSICAL DAMAGE POLICY                                                    concealment
       A. Declarations                                                             N. Negligence, liability, and damages
       B. Definitions                                                              O. Bodily injury, property damage, personal injury
          1. Named insured                                                         P. Accident
          2. Family member                                                         Q. Deposit premium/audit
          3. Your covered auto                                                     R. Liability limits: single, split, aggregate
             a. Owned                                                              S. Certificate of insurance
             b. Nonowned                                                           T. Binder
             c. Temporary substitute                                               U. Endorsement
       C. Part D — Coverage for damage to your auto                                V. Subrogation
          1. Insuring agreement                                                    W. Liberalization clause
             a. Collision                                                          X. First-named insured
             b. Other than collision (comprehensive)                               Y. Monoline vs. package policies
          2. Transportation expenses                                               Z. Major classes of policy provisions
          3. Salvage charges                                                          1. Declarations
          4. Exclusions                                                               2. Definitions
          5. Limit of liability                                                       3. Insuring agreements
          6. Payment of loss                                                          4. Exclusions
          7. No benefit to bailee                                                     5. Conditions
          8. Other insurance
          9. Appraisal                                                       II.   COMMERCIAL INSURANCE COVERAGES .................5
                                                                                   A. Building and personal property coverage form
III.   NORTH CAROLINA STATUTES AND REGULATIONS                                     B. Other coverage forms and endorsements (the
       PERTINENT TO AUTO PHYSICAL DAMAGE                                              candidate is responsible only for an understanding
       A. Unfair Trade Practices
                                                                                      of the general nature of these and how they modify
          Ref: Article 63 (G.S. 58-63-15(11), 20, 50)                                 or tailor coverage to meet specific needs.)
       B. Consumer Division
                                                                                      1. Peak season endorsement
          Ref: 11 NCAC, Chapter 4, Sections .0418, .0419, .0423
                                                                                      2. Value reporting form
                                                                                      3. Builders risk form
                                                                                      4. Legal liability form
                                                                                      5. Glass coverage form


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       C. Business income coverage form                                                       I.   Approved attorney system
       D. Extra expense coverage form                                                         J.   Encroachment
       E. Crime coverage forms                                                                K.   Building set back line
       F. Boiler and machinery forms                                                          L.   Restrictive covenant
       G. General liability insurance
                                                                                       II.    TITLE INSURANCE POLICIES (APPROVED BY ALTA)
       H. Automobile insurance
                                                                                              A. Types
       I. Commercial inland marine (The candidate is
                                                                                                 1. Owners
          responsible only for a general understanding of the
                                                                                                 2. Loan
          needs these coverages meet)
                                                                                                 3. Homeowners
          1. Bailee’s customer
                                                                                                 4. Short Form
          2. Contractors’ equipment
                                                                                              B. Format
          3. Builder’s risk
                                                                                                 1. Covered risks
          4. Motor truck cargo (owner’s form)
                                                                                                 2. Exclusions from coverage
       J. Surety bonds
                                                                                                 3. Conditions
       K. Commercial umbrella policy
                                                                                                 4. Schedule A
III.   SURPLUS LINES ACT................................................... 45                   5. Schedule B
       Ref: 58-21, 58-33                                                                      C. Premiums
       A. Purpose of the Act                                                                  D. Endorsements
       B. Guaranty Fund
                                                                                       III.   TYPES OF REAL ESTATE OWNERSHIP
       C. Condition for placing coverage
                                                                                              A. Unit
       D. Bond requirement
                                                                                                 1. Condominiums
       E. Records retention
                                                                                                 2. Townhouses
       F. Regulatory Support Organizations
                                                                                                 3. Time shares
       G. Payments to insurer
                                                                                              B. Tenants in common
       H. Premium tax
                                                                                              C. Fee simple
       I. Unauthorized Insurers
                                                                                              D. Life estate
       J. Quarterly reports
                                                                                              E. Leasehold
       K. Penalties
                                                                                              F. Tenancy by the entireties
       L. Eligible Surplus Lines Insurers requirements
       M. Reporting requirements                                                       IV.    RIGHTS AND INTERESTS
       N. Rates and forms                                                                     A. Easement and Right of way
       O. Surplus Lines Licensee eligibility                                                  B. Liens
       P. Placement of coverage                                                                  1. General
       Q. Duties to insured                                                                      2. Specific
       R. Corporate License
                                                                                       V.     LEGAL DESCRIPTIONS
       S. Tax filings for non-resident licensees
                                                                                              A. Surveys
       T. Definitions
                                                                                                 1. Boundary
                                                                                                 2. Foundation
                                                                                                 3. Final
                     NORTH CAROLINA                                                           B. Metes and bounds
                       TITLE AGENT                                                            C. Lot and block
                     CONTENT OUTLINE                                                   VI.    METHODS OF TRANSFER/CONVEYANCES
                             (50 questions)                                                   A. Deed
This examination will test on topics listed on the following content                             1. General warranty deed
outline and is composed of fifty (50) four-option, multiple-choice                               2. Special warranty deed
questions.                                                                                       3. Non-warranty/Quitclaim
I.     TITLE INSURANCE TERMS AND CONCEPTS                                                        4. Trustees deed
       A. Binder (Commitment)                                                                 B. Deed of trust
       B. Policy                                                                              C. Mortgage
       C. Exception                                                                           D. Lease
       D. Requirement                                                                         E. Option
       E. Endorsement                                                                         F. Will
       F. Surveyor’s report                                                                   G. Adverse possession
       G. Length of search                                                                    H. Foreclosure
       H. Closing Protection Letter                                                           I. Bankruptcy


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                                                                                 S18
     J. Court Order                                                                I. Exception/Fire and Transit
VII. NORTH CAROLINA STATUTES AND REGULATIONS                                       J. Insurable Interest or Contract
     PERTINENT TO TITLE INSURANCE                                           III.   MULTIPLE PERIL INSURANCE
        Ref: NC G.S. Chapter 58                                             IV.    NORTH CAROLINA STATUTES, RULES, AND
                                                                                   REGULATIONS PERTINENT TO ALL ADJUSTERS
                                                                                   A. Contract of Insurance
                                                                                      Ref: Article 1 (G.S. 58-1-10)
                                                                                   B. Commissioner of Insurance
                  NORTH CAROLINA
                                                                                      Ref: Article 2 (G.S. 58-2-5, 40, 50, 60, 65, 69, 70, 155,
                   HAIL ADJUSTER
                                                                                      160, 161, 162, 163, 180, 185, 195, 200)
                  CONTENT OUTLINE                                                  C. General Regulations for Insurance
                   (19 scoreable questions )                                          Ref: Article 3 (G.S. 58-3-10, 15, 25, 30, 40, 115, 120,
This examination tests the very specific knowledge required to                        130, 135, 140, 145)
adjust crop damage caused by hail. It is suggested that candidates                 D. Licensing of Agents, Brokers, Limited
prepare for this test by consulting with licensed hail adjusters or                   Representatives, and Adjusters
licensed adjusters who, in the course of their daily work, adjust                     Ref: Article 33 (G.S. 58-33-1, 5, 10, 15, 17, 20, 26, 30,
crop damage due to hail. Another option is to contact companies                       31, 32, 35, 40, 46, 50, 56, 60, 66, 70, 75, 76, 80, 82, 83,
whose business is to adjust crop hail damage. These sources may                       105, 110, 115, 120, 125, 130, 132, 135)
assist the candidate in hail adjusting examination preparation.                    E. Insurance Information & Privacy Protection Act
I. GENERAL INSURANCE TERMS AND CONCEPTS                                               Ref: Article 39 (G.S. 58-39-5 through 58-39-120)
     A. Insurable interest                                                         F. Unfair Trade Practices
     B. Risk                                                                          Ref: Article 63 (G.S. 58-63-15(11), 20, 50)
     C. Hazard                                                                     G. Consumer Division
     D. Peril                                                                         Ref: 11 NCAC, Chapter 4, Sections .0417-.0421, .0423,
     E. Loss                                                                          .0425, .0426
        1. Direct
        2. Indirect
     F. Indemnity
     G. Coinsurance
     H. Occurrence
     I. Negligence
     J. Insuring Agreement
     K. Subrogation
     L. Tort Law
     M. Pro-rata liability
     N. Binder
     O. Exclusions
     P. Deductible
II. CROP INSURANCE
     A. Policy rates
     B. Coverages available
     C. Policy provisions
     D. Claim Settlement Practices
        1. Claims site assessment
            a. Site testing
            b. Standard measures
            c. Location
        2. Notice of loss
        3. Insured’s duties
        4. Percentage Plan
        5. Arbitration and appraisal
        6. Loss payment
     E. Cancellation and nonrenewal
     F. Application/Assignment
     G. National Crop Insurance Service
     H. Federal Crop Insurance Act


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                                                                      S19

								
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