10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
These 10 free ND-PC questions are organized by exam domain, so you can see how each part of the North Dakota Property & Casualty Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
At a community insurance seminar, a North Dakota producer gives each attendee a $75 restaurant-specific gift card. The gift is available whether or not the attendee requests a quote or buys coverage, and no attendee receives another gift that year. Which treatment is correct under North Dakota law?
Correct answer: B - A permitted gift because it is under $100 and is not tied to a quote or purchase
A covered North Dakota insured has an actual wage loss of $500 per week because of an automobile injury. The $30,000 basic no-fault benefit limit has not been exhausted. What weekly work-loss benefit is payable?
Correct answer: C - $150 per week
Three of four units, or 75%, in a residential rental dwelling are unoccupied, and utilities have been off for 35 days. Its covered North Dakota personal residential property policy has been in force for 14 months. If the insurer invokes a statutory emergency-property condition, what minimum advance cancellation notice is permitted?
Correct answer: A - 5 days
The insurer furnishes a producer with branded office signs and applications and has repeatedly honored similar binders. The agency agreement does not expressly authorize the binder at issue, but an applicant reasonably relies on the insurer's outward conduct. What authority is implicated?
Correct answer: D - Apparent authority
The jury determines compensatory damages of $240,000, assigning 40% fault to the North Dakota claimant and 60% to the defendants combined. Before insurance limits or allocation among defendants, what is the claimant's recoverable amount?
Correct answer: A - $144,000
During a dinner visit, a guest trips over the guest's own untied shoelace at the residence premises and incurs $1,800 in medical expenses. No unsafe condition or negligence by an insured is shown. Subject to limits and exclusions, which homeowners coverage can respond without proof of legal liability?
Correct answer: B - Coverage F - Medical Payments to Others
Employees of a consulting firm use their personal cars on company errands. The firm neither owns, hires, nor borrows those cars and does not want the broader 'any auto' designation. Which covered-auto symbol should appear for this liability exposure?
Correct answer: C - Symbol 9 - nonowned autos
For 75 consecutive days before a windstorm loss, an owner-operated commercial building has been used for customary operations in only 20% of its floor area. What does the standard commercial property vacancy condition require for the otherwise covered loss?
Correct answer: A - The covered loss is payable after a 15% vacancy reduction
Coverage under a claims-made CGL policy ends by nonrenewal on June 30, and the standard automatic 60-day Basic Extended Reporting Period applies. Bodily injury occurred during the policy period after the retroactive date. A claim is first made on July 25 and reported promptly; no other exclusion applies. Which coverage conclusion follows?
Correct answer: D - Potentially covered under the 60-day Basic reporting period because the injury preceded nonrenewal
When a lender requires flood insurance as a condition of making a loan secured by a building, the borrower submits the Standard Flood Insurance Policy application and premium at closing. No map-revision exception applies. What effective date is permitted?
Correct answer: C - At the loan closing
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