COMBINED NC life and health insurance study questions with verified solutions 2024

Definitions - Broker - Means a person who, being a licensed agent, procures insurance for a party other than himself through a duly authorized agent or an insurer that is licensed to do business in this State bur for which the broker is not authorized to act as an agent. Definitions - Limited Rep...

All of the following are true regarding Key Employee Disability Income insurance EXCEPT A) Premiums are not tax deductible for the employer. B) Benefits are taxable to the employer. C) The employer owns the policy. D) Benefits are paid to the employer to retrain a new person. - B) Benefits are...

risk avoidance - occurs when individuals evade risk entirely risk reduction - occurs when chances of risk are lessened risk retention - is being aware of the risks involved and taking precautions for financial protection. risk transference - is the act of shifting the responsibility of risk...

Pure Risk - chance of loss or no loss but not gain insurable Speculative Risk - there is possibility of loss but of gain no insurablility exposure unit - subject to loss peril - cause of loss life insurance - death Health insurance - accident and sickness hazard - increases the lik...

Which of the following is NOT a characteristic of universal life insurance? A Flexible death benefit B Cash account C Fixed premium D Unbundled premium - C Universal life policies allow the policy owner to increase the amount of premium going into the policy and to later decrease it again. They...

Which of the following provides coverage on a first-dollar basis? - Basic expense. Which of the following answers does NOT describe the principal goal of a Preferred Provider Organization? - Provide medical services only from physicians in the network. A small business owner is the insured und...

Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated: - 1970 - Fair Credit Reporting Act What type of reinsurance contract involves two companies automatically sharing their risk exposure? - Treaty What is the name of the la...

Which of these statements concerning an individual Disability Income policy is TRUE? - Normally includes an Elimination period Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract? - Entire co...