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Life and Health Insurance Study Questions (NC) Questions and Answers 2024
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Life and Health Insurance Study Questions (NC)
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Life and Health Insurance StudyQuestions (NC)
Variable life products require a producer to - answerhold a Life insurance license and
Securities license
What type of renewability guarantees premium rates and renewability? – answer
Noncancellable
North Carolina insurance law permits which of the following practices? - answer Higher
rates of male insureds for Life Insurance based exclusively on gender
Which of these is NOT a reason for a business to buy key person life insurance?
A) The reduction in sales as a directed result from death of the key employee
B) A void leadership if the key person were to die
C) The loss of company revenues while a replacement is being sought
D) A pension deficiency if the key employee dies - answerA pension deficiency if the
key employee dies
A person insured under a health policy is required to give the insurance company a
Notice of Claim within how many days after a covered loss? - answer20 days
How does the commissioner of Insurance attain office? - answerElected by the people
of NC to a 4-year term
An agent soliciting insurance policies in NC must be - answerappointed by an
authorized insurer in NC
A provision in a life insurance policy that pays the policyowner an amount that does not
surpass the guaranteed cash value is called the: - answerPolicy Loan provision
A long-term care rider in a life insurance policy pays a daily benefit in the event of which
of the following? - answerInability of the insured to perform more than 2 Activities of
Daily Living (ADL's)
A major medical policy typically: - answerprovides benefits for reasonable and
necessary medical expense, subject to policy limits
R becomes disable and owns a n individual Disability Income policy. When is R eligible
to receive disability benefits? - answerUpon satisfying the elimination period
requirement
,Premature IRA distributions are assessed a penalty tax of: - answer10%
An individual who purchases a Life annuity is given protection against: - answerthe risk
of living longer than expected
Which of the following types of Term Life policies most likely contains a Renewability
feature? - answer10 year Convertible Term
Before a life insurance policy is issued, which of these components of the contact is
required? - answerApplicant's signature on application
A Hospital/Surgical Expense policy was purchased for a family of four in March of 2013.
The policy was issued with a $500 deductible and a limit of four deductibles per
calendar year. Two claims were pain in September 2013, each incurring medical
expense in excess of the deductible amount as well. What would be this family's out-of-
pocket medical expense for 2013? - answer$1000
Which of the following MUST be included with the continuation of coverage of a group
Hospital, Surgical, and Major medical policy?
A) Chiropractic coverage
B) Vision care
C) Wellness program
D) Hospital expense - answerHospital expense
The Notice of Claims provision requires a policyowner to: - answerNotify an insurer of a
claim within a specified time
What kind of insurance policy supplies an income stream over a set period of time that
starts when the insured dies? - answerFamily Maintenance Policy
S filed a written Proof of Loss for a Disability Income claim on September 1. The
insurance company did not respond to the claim. Scan take legal action against the
insurer beginning: - answerNovember 1
Which of these is NOT considered to be an element of an insurance contract?
A) the offer
B) acceptance
C) negotiating
D) consideration - answernegotiating
T would like to be assured $10,000 is available in 10 years to replace a roof on his
house. What kind of $10,000 policy should T purchase? - answer10-year endowment
Which statement about whole life policy is true? - answerCash value may be borrowed
against
, A terminated employee must have been covered for a LEAST____ month(s) under a
Group Health Insurance policy immediately prior to termination in order to be eligible
continuation of coverage. - answer3 months
Death benefits for suicide must be paid if the policy has been in force for at LAEST -
answer2 years
Which mode of payment is NOT used by health insurance policies?
A) Monthly premium
B) Annual premium
C) Single premium
D) Single-annual premium - answerSingle premuim
When does a life insurance contract become effective if the initial premium is not
collected during the application process? - answerWhen producer delivers policy and
collects initial premium
What type of annuity has a cash value that is based upon the performance of it's
underlying investment funds? - answerVariable
Which statement regarding a Key Employee Life policy is NOT true?
A) The application must be sign by the key employee
B) Its purpose is to prevent the financial loss that may ensure if a key employee dies
C) The beneficiary is named by the key employee
D) The company purchases, owns, pays the premiums, and it the beneficiary -
answerThe beneficiary is named by the key employee
Which of these would be considered a Limited-Pay Life policy? - answerLife Paid-Ip at
Age 70
An employee with $25,000 group term life coverage was recently fired. This employee's
group coverage may be converted to a - answer$25,000 individual whole life policy
The commissioner of Insurance has notified an insurer that an Individual Health Policy
form does not comply with North Carolina laws. The insurer may - answernot issue the
form in connection with any new application
A Health Insurance Policy applicant unintentionally fails to list a previous visit to a
neurologist. If the policy is issued and the insurer later decides to contest the policy, it
must do so - answerwithin 2 years from the date of issue
When an insured has the same disability within a specified time period and the
insurance company provides the same benefits without a new waiting period, the
second disability is covered under which of the following? - answerRecurrent Disability
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