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NC Property & Casualty practice questions

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Question 1Insurance Principles and Concepts

Which term describes a condition that increases the likelihood or severity of a loss, such as an icy sidewalk or faulty wiring?

  1. Risk
  2. Peril
  3. Hazard Correct answer.
  4. Exposure

Explanation

A hazard is a condition that creates or increases the chance that a peril will cause a loss, or that makes a loss worse. Perils are the actual causes of loss, while risk is the uncertainty about whether a loss will occur.

Question 2Insurance Principles and Concepts

Which category of risk involves only the chance of loss or no loss, with no possibility of financial gain?

  1. Market risk
  2. Pure risk Correct answer.
  3. Speculative risk
  4. Financial risk

Explanation

Pure risk presents only the possibility of loss or no loss, and it is the type of risk traditionally considered insurable. Speculative risk involves the chance of gain as well as loss and is generally not insurable.

Question 3Insurance Principles and Concepts

To insure a building under a property policy, the insured must have insurable interest, which means the insured:

  1. must hold sole legal title to the property with no mortgage or lien
  2. must occupy the property as a primary residence at the time of loss
  3. would suffer a financial loss if the property were damaged or destroyed Correct answer.
  4. must have purchased the policy within the past twelve months

Explanation

Insurable interest exists when a person would suffer a genuine economic loss from the destruction of the property. It prevents insurance from being used as a wagering device and supports the principle of indemnity.

Question 4Insurance Principles and Concepts

The principle of indemnity provides that after a covered loss the insured is restored to:

  1. the same financial position as before the loss, no better Correct answer.
  2. full replacement of all damaged property regardless of its value
  3. a better position than the one held before the loss
  4. the average position of other policyholders with similar coverage

Explanation

Indemnity means the insured is made whole for the actual financial loss but cannot profit from it. This is why payments are tied to the value of the loss, subject to policy limits.

Question 5Insurance Principles and Concepts

An insurance policy is classified as an aleatory contract because:

  1. both parties must exchange value of roughly equal amount
  2. only the insurer makes a legally enforceable promise
  3. it is offered to the insured on a take-it-or-leave-it basis
  4. the amounts exchanged may be unequal and depend on chance Correct answer.

Explanation

In an aleatory contract the dollar amounts exchanged by the parties are unequal and contingent on an uncertain event. A small premium may be followed by a large claim payment, or by no payment at all.

Question 6Insurance Principles and Concepts

Because an insurance policy is a contract of adhesion, courts generally hold that:

  1. the insured may rewrite unclear policy terms to match personal expectations
  2. the insurer may change the policy terms at any time during the term
  3. ambiguous policy wording is construed against the insurer that drafted it Correct answer.
  4. every policy term is enforced exactly as written without exception

Explanation

A contract of adhesion is drafted by one party and accepted or rejected by the other, so ambiguity is resolved in favor of the party who had no voice in drafting. This rule discourages unclear policy language.

Question 7Insurance Principles and Concepts

After paying a covered property loss caused by a negligent third party, an insurer's right to recover that payment from the third party is called:

  1. Subrogation Correct answer.
  2. Contribution
  3. Indemnification
  4. Assignment

Explanation

Subrogation transfers the insured's right of recovery against the responsible party to the insurer that paid the claim. It helps hold the negligent party accountable and keeps the insured from collecting twice.

Question 8Insurance Principles and Concepts

An insured who stops locking his warehouse because he believes insurance will pay for any theft is exhibiting:

  1. a morale hazard Correct answer.
  2. a physical hazard
  3. a moral hazard
  4. a speculative risk

Explanation

A morale hazard is carelessness or indifference toward loss that results from having insurance. Moral hazard, by contrast, involves dishonesty or intentional conduct such as filing a false claim.

Question 9Insurance Principles and Concepts

The law of large numbers allows an insurer to:

  1. predict losses more accurately as similar exposure units increase Correct answer.
  2. eliminate all uncertainty from its book of business
  3. avoid the need to buy reinsurance for large losses
  4. charge every policyholder the same premium regardless of risk

Explanation

As the number of similar, independent exposure units grows, actual losses tend to approach the expected loss level. This predictability underlies ratemaking and underwriting.

Question 10Insurance Principles and Concepts

Adverse selection refers to:

  1. the rejection of claims submitted after a reporting deadline
  2. a decline in the number of policies sold during a soft market
  3. insurers choosing to appoint only the most profitable agents
  4. the tendency of higher-than-average risks to seek or keep insurance Correct answer.

Explanation

Adverse selection occurs when applicants are disproportionately poor risks, so the insurer's loss experience is worse than anticipated. Underwriting and accurate rating are used to control it.

Question 11Insurance Principles and Concepts

A roof with a replacement cost of $20,000 has a 25-year useful life and is five years old when it is destroyed. Using straight-line depreciation and actual cash value, the insurer pays approximately:

  1. $16,000 Correct answer.
  2. $15,000
  3. $20,000
  4. $4,000

Explanation

Actual cash value equals replacement cost minus depreciation. Five years of a 25-year life equals 20 percent depreciation, or $4,000, leaving an actual cash value of $16,000.

Question 12Insurance Principles and Concepts

A building with a replacement cost of $1,000,000 is insured for $600,000 under a policy with an 80 percent coinsurance requirement. A covered loss of $100,000 occurs. Ignoring any deductible, the insurer pays:

  1. $100,000
  2. $75,000 Correct answer.
  3. $60,000
  4. $80,000

Explanation

The required amount of insurance is 80 percent of $1,000,000, or $800,000. The insured carried $600,000, so the recovery is ($600,000 / $800,000) times $100,000, or $75,000.

Question 13Insurance Principles and Concepts

A binder issued by an agent provides:

  1. authority for the agent to bind the insurer indefinitely
  2. written proof that a submitted claim has been paid
  3. a permanent guarantee that the policy will not be canceled
  4. temporary evidence of coverage until the policy is issued Correct answer.

Explanation

A binder is temporary evidence that coverage is in effect while the policy is being issued. Its terms are generally those of the policy applied for, and it ends when the policy is issued or the binder expires.

Question 14Insurance Principles and Concepts

A statement made by an applicant in an insurance application that the applicant believes to be true to the best of his or her knowledge is a:

  1. representation Correct answer.
  2. warranty
  3. waiver
  4. concealment

Explanation

A representation is a statement believed to be true to the best of the applicant's knowledge, and it need only be substantially true. A warranty, by comparison, is a statement the applicant guarantees to be literally correct.

Question 15Insurance Principles and Concepts

An insurer's adjuster tells the insured in writing that a late-reported claim will still be honored, and the insured relies on that statement. The insurer is most likely:

  1. allowed to deny coverage because late notice is a policy condition
  2. estopped from denying coverage because of its waiver Correct answer.
  3. liable for bad faith but still able to deny the claim
  4. required to return the premium and cancel the policy

Explanation

A voluntary surrender of a known right is a waiver, and estoppel prevents the insurer from later asserting that right when the insured has reasonably relied on the waiver to his or her detriment.

Question 16Insurance Principles and Concepts

For purposes of property insurance coverage, the proximate cause of a loss is:

  1. the last event in the chain of events leading to the damage
  2. any cause that contributes in even a minor way to the loss
  3. the cause that is closest in time to the resulting damage
  4. the dominant, effective cause that sets the other causes in motion Correct answer.

Explanation

Proximate cause is the dominant and effective cause that starts the chain of events ending in loss, even if other causes follow it. It determines whether the loss arose from a covered peril.

Question 17Insurance Principles and Concepts

To recover for negligence in a liability claim, a claimant generally must prove duty, breach of that duty, causation, and:

  1. damages Correct answer.
  2. intent
  3. a criminal act
  4. a written contract

Explanation

Negligence requires a duty owed, a breach of that duty, a causal connection between the breach and the harm, and actual damages. Without damages, there is nothing for a liability insurer to pay.

Question 18Insurance Principles and Concepts

Under a pure comparative negligence rule, a claimant found to be 30 percent at fault for the accident:

  1. recovers 70 percent of the proven damages Correct answer.
  2. recovers 30 percent of the proven damages
  3. recovers 100 percent of the proven damages
  4. recovers nothing because of his or her own fault

Explanation

Pure comparative negligence reduces the claimant's recovery by his or her percentage of fault but does not bar recovery regardless of how great that percentage is. A 30 percent fault share therefore reduces the award to 70 percent.

Question 19Insurance Principles and Concepts

An employer is held liable for the negligent acts of an employee committed within the scope of employment. This is an example of:

  1. absolute liability
  2. contractual liability
  3. products liability
  4. vicarious liability Correct answer.

Explanation

Vicarious liability makes one party responsible for the acts of another based on their relationship, such as employer and employee acting within the scope of employment. The employer's liability does not depend on the employer's own negligent conduct.

Question 20Insurance Principles and Concepts

Reinsurance is best described as:

  1. insurance sold directly to large commercial buyers by a primary insurer
  2. a government program that guarantees the solvency of insurers
  3. insurance bought by an insurer to protect itself against excessive losses Correct answer.
  4. a pool that returns unused premiums to policyholders at year end

Explanation

Reinsurance is insurance for insurers, used to spread large or catastrophic exposures and to increase capacity. The original insured deals with the primary insurer, not the reinsurer.

Question 21North Carolina Insurance Laws, Rules, and Regulations

Which official or body has primary responsibility for enforcing North Carolina's insurance laws and regulations?

  1. The Commissioner of Insurance, an elected statewide official Correct answer.
  2. The Secretary of State, an appointed cabinet officer
  3. The Governor's Department of Revenue
  4. The North Carolina General Assembly's insurance committee

Explanation

North Carolina's Insurance Commissioner is elected by the voters and heads the Department of Insurance, which administers and enforces the Insurance Code. The Commissioner licenses insurers and producers, reviews rates and forms, and investigates violations.

Question 22North Carolina Insurance Laws, Rules, and Regulations

What are the minimum bodily injury and property damage liability limits required for a private passenger auto policy in North Carolina?

  1. 25/50/25
  2. 30/60/25 Correct answer.
  3. 15/30/5
  4. 50/100/50

Explanation

North Carolina's financial responsibility law requires minimum liability limits of $30,000 per person and $60,000 per accident for bodily injury, plus $25,000 for property damage. These limits are commonly written as 30/60/25.

Question 23North Carolina Insurance Laws, Rules, and Regulations

When an insurer issues a North Carolina private passenger auto liability policy, how is uninsured motorist coverage handled?

  1. It applies only to hit-and-run accidents.
  2. It must be provided in limits equal to the liability limits unless the insured rejects it in writing. Correct answer.
  3. It is excluded unless the insured is at least 25 years old.
  4. It is included only if the insured pays a separate premium and signs an acceptance form.

Explanation

North Carolina requires uninsured motorist coverage to be provided with limits equal to the policy's liability limits unless the insured rejects it in writing. The rejection must be documented by the insurer.

Question 24North Carolina Insurance Laws, Rules, and Regulations

The North Carolina Rate Bureau is best described as which of the following?

  1. An association of agents that sets producer commission levels
  2. An organization of insurers that files property and casualty rates Correct answer.
  3. A state agency that sells insurance policies directly to the public
  4. A federal advisory board that reviews interstate insurance rates

Explanation

The North Carolina Rate Bureau is composed of insurers and files property and casualty rates with the Commissioner of Insurance for approval. It is not a state agency and does not sell insurance directly to consumers.

Question 25North Carolina Insurance Laws, Rules, and Regulations

Under North Carolina's valued policy law, when a building is totally destroyed by fire, the insurer generally must do which of the following?

  1. Pay only the actual cash value of the building at the time of loss
  2. Pay only the mortgagee's outstanding loan balance
  3. Pay nothing until the insured has completely rebuilt the structure
  4. Pay the full amount of insurance stated in the policy Correct answer.

Explanation

North Carolina's valued policy law treats the policy limit as the agreed value of real property for a total loss caused by fire or lightning. The insurer generally must pay the full policy amount rather than the actual cash value.

Question 26North Carolina Insurance Laws, Rules, and Regulations

The North Carolina Insurance Guaranty Association exists primarily to do which of the following?

  1. Pay covered claims of insolvent property and casualty insurers Correct answer.
  2. Set the rates that all property and casualty insurers must charge
  3. Guarantee a minimum profit for every authorized insurer
  4. License insurance producers and collect their continuing education fees

Explanation

The North Carolina Insurance Guaranty Association protects policyholders by paying covered claims of property and casualty insurers that become insolvent. It is funded by assessments on member insurers and does not guarantee insurer profits.

Question 27North Carolina Insurance Laws, Rules, and Regulations

Which practice is prohibited for a licensed North Carolina insurance producer?

  1. Charging the rate that has been filed with the Commissioner
  2. Offering part of the commission to induce a sale Correct answer.
  3. Providing a written quote to a prospective insured
  4. Explaining the policy's exclusions to a prospective insured

Explanation

Rebating occurs when a producer offers part of the commission or another inducement to a prospective insured to encourage the purchase of insurance. North Carolina prohibits rebating because it can lead to unfair discrimination among policyholders.

Question 28North Carolina Insurance Laws, Rules, and Regulations

A person who solicits insurance in North Carolina without a valid producer license is in what position?

  1. Allowed if the person receives no commission for the sale
  2. Required only to register with the Rate Bureau
  3. Subject to penalties under the Insurance Code Correct answer.
  4. Allowed if the person works for an authorized insurer

Explanation

North Carolina requires a producer license before a person may solicit, negotiate, or sell insurance. Unlicensed solicitation is a violation of the Insurance Code and may result in penalties.

Question 29North Carolina Insurance Laws, Rules, and Regulations

The North Carolina Reinsurance Facility was created primarily to do which of the following?

  1. Cover uninsured motorists after they are involved in an accident
  2. Reinsure coastal property owners through the state Beach Plan
  3. Provide auto coverage for drivers rejected by the voluntary market Correct answer.
  4. Administer workers compensation claims for state employees

Explanation

The North Carolina Reinsurance Facility is a residual market mechanism that allows insurers to cede private passenger auto risks that would otherwise be difficult to place. It helps provide auto liability coverage for drivers who cannot obtain coverage in the voluntary market.

Question 30North Carolina Insurance Laws, Rules, and Regulations

Under North Carolina's Safe Driver Incentive Plan, a private passenger auto insurer assigns points for which of the following?

  1. The number of vehicles in the household
  2. At-fault accidents and moving violations Correct answer.
  3. The insured's age and marital status
  4. The insured's credit history alone

Explanation

The Safe Driver Incentive Plan assigns points for at-fault accidents and moving traffic convictions, which can result in a premium surcharge. The plan is designed to relate premium to driving record.

Question 31North Carolina Insurance Laws, Rules, and Regulations

For a North Carolina homeowners policy that has been in effect for 60 days, the insurer may cancel the policy under which of the following circumstances?

  1. For any reason if the insurer gives ten days' written notice
  2. Only after the Commissioner gives prior written approval
  3. Only when the mortgagee sends a written request
  4. Only for statutory reasons such as nonpayment or fraud Correct answer.

Explanation

After the 60-day underwriting period, North Carolina law restricts cancellation of a homeowners policy to specified statutory reasons, such as nonpayment of premium, fraud, or material misrepresentation. The insurer cannot cancel merely because it no longer wishes to insure the risk.

Question 32North Carolina Insurance Laws, Rules, and Regulations

Before placing a risk with a surplus lines insurer, a North Carolina surplus lines broker must do which of the following?

  1. Obtain a rate quotation from the Rate Bureau
  2. Obtain written approval from the Guaranty Association
  3. Use only an insurer domiciled in North Carolina
  4. First make a diligent effort to use authorized insurers Correct answer.

Explanation

Surplus lines insurance is available only when coverage cannot be obtained from authorized insurers. The broker must document a diligent effort to place the risk in the admitted market before using an eligible surplus lines insurer.

Question 33North Carolina Insurance Laws, Rules, and Regulations

Premiums that a North Carolina insurance producer collects from insureds are generally held in what manner?

  1. Held in a fiduciary capacity and not commingled Correct answer.
  2. The producer's own property once collected
  3. Exempt from review by the Commissioner
  4. Required to be held in trust for five years

Explanation

Premiums collected by a producer belong to the insurer or insured, not the producer, and are held in a fiduciary capacity. The producer may not commingle premium funds with personal or general business funds.

Question 34North Carolina Insurance Laws, Rules, and Regulations

Which of the following is an unfair claims settlement practice under North Carolina law?

  1. Requesting a police report for an auto theft claim
  2. Using an independent adjuster to inspect damage
  3. Failing to act promptly on claim communications Correct answer.
  4. Requiring the insured to submit a proof of loss

Explanation

North Carolina law identifies unfair claim settlement practices, including failing to acknowledge and act reasonably promptly on communications about a claim. Insurers must handle claims in good faith and adopt reasonable claim standards.

Question 35North Carolina Insurance Laws, Rules, and Regulations

Under the North Carolina Workers' Compensation Act, an employer must secure workers' compensation coverage when it regularly employs how many employees?

  1. Three or more employees Correct answer.
  2. Five or more employees
  3. Fifteen or more employees
  4. One or more employees

Explanation

North Carolina's Workers' Compensation Act generally applies to employers that regularly employ three or more employees. Covered employers must obtain workers' compensation insurance or qualify as self-insurers.

Question 36North Carolina Insurance Laws, Rules, and Regulations

North Carolina is best described as which type of auto insurance state?

  1. A no-fault state with mandatory PIP
  2. A tort liability state Correct answer.
  3. A pure no-fault state
  4. A choice no-fault state

Explanation

North Carolina is a tort liability state, meaning an injured party generally may pursue a claim against the at-fault driver. The state does not require personal injury protection as a no-fault benefit.

Question 37North Carolina Insurance Laws, Rules, and Regulations

The North Carolina Commissioner of Insurance may examine an authorized insurer's books and records under which of the following standards?

  1. Only with the insurer's written consent
  2. Only during the insurer's first year of operation
  3. Only after a formal criminal conviction
  4. As often as the Commissioner considers necessary Correct answer.

Explanation

The Commissioner has broad examination authority over authorized insurers to verify financial condition, compliance, and fair dealing. Examinations may be conducted as often as the Commissioner considers necessary.

Question 38North Carolina Insurance Laws, Rules, and Regulations

A North Carolina private passenger auto liability policy generally covers which drivers?

  1. Only the named insured shown on the declarations page
  2. Only drivers who are at least 25 years old
  3. Only drivers specifically listed on the declarations page
  4. The named insured, family members, and permissive users Correct answer.

Explanation

Auto liability coverage generally extends to the named insured and family members, as well as to persons using the covered vehicle with permission. This permissive use feature is subject to policy terms and exclusions.

Question 39North Carolina Insurance Laws, Rules, and Regulations

North Carolina law prohibits an insurer from charging rates that are which of the following?

  1. Lower than the Rate Bureau's advisory rate
  2. Approved by the Commissioner after a hearing
  3. Based on the insured's driving record
  4. Unfairly discriminatory Correct answer.

Explanation

Rates must not be excessive, inadequate, or unfairly discriminatory. Unfair discrimination occurs when insureds with similar risk characteristics are charged different rates without a sound actuarial basis.

Question 40North Carolina Insurance Laws, Rules, and Regulations

Before transacting insurance in North Carolina, an insurer must obtain what from the Commissioner of Insurance?

  1. A Guaranty Association certificate
  2. A surplus lines endorsement
  3. A Rate Bureau membership card
  4. A certificate of authority Correct answer.

Explanation

An insurer must be authorized by the Commissioner and receive a certificate of authority before it may transact insurance in North Carolina. Unauthorized insurers are generally prohibited from doing business in the state except through limited mechanisms such as surplus lines.

Question 41North Carolina Insurance Laws, Rules, and Regulations

A North Carolina producer may share a commission on a policy with which of the following persons?

  1. A licensed producer who participated in the sale Correct answer.
  2. An unlicensed secretary who referred the client
  3. Any person who requests a share of the commission
  4. A bank teller who supplied a lead

Explanation

North Carolina law permits commission sharing between licensed producers when the sharing is related to the insurance transaction. Sharing commissions with unlicensed persons for soliciting or referring insurance business is prohibited.

Question 42North Carolina Insurance Laws, Rules, and Regulations

The North Carolina Insurance Guaranty Association generally limits covered claims to what amount?

  1. $100,000 per claim
  2. $300,000 per claim Correct answer.
  3. $1,000,000 per claim
  4. The full policy limit with no cap

Explanation

The North Carolina Insurance Guaranty Association Act generally caps covered claims at $300,000 per claim. This limit protects the association's funds while providing meaningful protection to policyholders of insolvent insurers.

Question 43North Carolina Insurance Laws, Rules, and Regulations

If a dwelling is totally destroyed by windstorm, how does North Carolina's valued policy law apply?

  1. It applies only if the mortgagee requests payment
  2. It does not apply because the law covers only fire and lightning Correct answer.
  3. It applies only if the insured purchased replacement cost coverage
  4. It applies and requires payment of the full policy limit

Explanation

North Carolina's valued policy law is limited to total losses caused by fire or lightning. A total loss from windstorm is not governed by that statute and is adjusted under the policy's other provisions.

Question 44North Carolina Insurance Laws, Rules, and Regulations

Under North Carolina law, making a false statement on an insurance application to obtain coverage or benefits is generally treated as which of the following?

  1. A felony investigated by the Insurance Fraud Division Correct answer.
  2. A minor infraction with no penalty
  3. Allowed if the insurer does not investigate the claim
  4. A civil matter only, handled by the Rate Bureau

Explanation

Insurance fraud in North Carolina is a serious offense and may be prosecuted as a felony. The Department of Insurance's Insurance Fraud Division investigates suspected fraudulent insurance acts.

Question 45North Carolina Insurance Laws, Rules, and Regulations

An unauthorized insurer may transact insurance in North Carolina under which of the following circumstances?

  1. Through the surplus lines market, with limits Correct answer.
  2. If it maintains an internet website for NC residents
  3. If the insured is a large business with a risk manager
  4. If it pays an annual fee to the Rate Bureau

Explanation

Unauthorized insurers are generally prohibited from transacting insurance in North Carolina. A limited exception exists through the surplus lines market, where eligible nonadmitted insurers may provide coverage after a diligent effort to use authorized insurers.

Question 46North Carolina Insurance Laws, Rules, and Regulations

What are the minimum liability limits required for a private passenger automobile policy issued in North Carolina?

  1. 20/40/10
  2. 50/100/25
  3. 30/60/25 Correct answer.
  4. 25/50/20

Explanation

North Carolina's compulsory liability law requires minimum limits of $30,000 per person and $60,000 per accident for bodily injury, plus $25,000 per accident for property damage. These are the statutory minimums; an insured may always purchase higher limits. A policy written below these amounts does not satisfy the financial responsibility requirement.

Question 47North Carolina Insurance Laws, Rules, and Regulations

The North Carolina Rate Bureau performs which function in the state's property and casualty market?

  1. It licenses producers on behalf of the Department of Insurance.
  2. It sets the commission scale paid to producers statewide.
  3. It pays claims of insurers that have become insolvent.
  4. It prepares and files proposed rates and rating rules. Correct answer.

Explanation

The Rate Bureau is the licensed rating organization that develops and files proposed rates and rating rules for workers' compensation and property and casualty lines written in North Carolina. Filings are submitted to the Commissioner of Insurance, who may approve, modify, or reject them after hearing. The Bureau does not license producers or guarantee claims.

Question 48North Carolina Insurance Laws, Rules, and Regulations

How many continuing education credit hours must a North Carolina resident insurance producer complete during each two-year license term?

  1. 24 credit hours Correct answer.
  2. 12 credit hours
  3. 16 credit hours
  4. 30 credit hours

Explanation

North Carolina resident producers must complete 24 credit hours of approved continuing education every two years to keep the license in good standing, and at least 3 of those hours must be in ethics. Credits must come from approved providers and be reported to the Department. Failure to complete the requirement can result in license termination or a reinstatement fee and late completion.

Question 49North Carolina Insurance Laws, Rules, and Regulations

A producer is aggrieved by a final order of the North Carolina Commissioner of Insurance and wants judicial review. In which court must the appeal be filed?

  1. The North Carolina Court of Appeals as the first reviewing court
  2. The Superior Court of Wake County Correct answer.
  3. The United States District Court for the Eastern District of North Carolina
  4. The superior court of the county where the producer resides

Explanation

Under North Carolina law, a person aggrieved by a final order of the Commissioner may appeal to the Superior Court of Wake County, the county where the Commissioner's office sits. The appeal must follow the procedure set out in the Administrative Procedure Act. The case enters the court system there rather than in the producer's home county or directly in the appellate division.

Question 50North Carolina Insurance Laws, Rules, and Regulations

The North Carolina Insurance Underwriting Association, often called the Beach Plan, was created primarily to provide which of the following?

  1. Property insurance in coastal areas Correct answer.
  2. Workers' compensation for high-risk employers
  3. Auto liability for high-risk drivers
  4. Reinsurance for ocean marine writers

Explanation

The Beach Plan is a residual market mechanism that makes basic property insurance available to owners of coastal property who cannot obtain coverage in the voluntary market. Insurers writing property coverage in the state participate in and fund the association. It is not a workers' compensation, auto, or reinsurance facility.