Exam (elaborations)
NC Life & Health State Exam Questions and Answers 2024
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NC Life & Health State Exam
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NC Life & Health State ExamA primary beneficiary has died before the insured in a life insurance policy. A contingent
beneficiary is also named in the policy. What will happen when the insured dies? -
answer Proceeds will go to the contingent beneficiary
What combination plan is designed to protect an insured from an unpaid mortgage
balance upon premature death? - answerJoint Life - policy covers two or more people.
Using some type o permanent insurance, it pays the death benefit at the first insured's
death
According to the Affordable Care Act (ACA), a dependent child's eligibility status is
determined by - answerAge - up until age 26
An incomplete life insurance application submitted to an insurer will result in what
actions? - answer Application will be returned to the writing agent - If a company
discovers a mistake or incompletion, it usually returns the application to the producer
Whole Life insurance policies are contractually guaranteed to provide - answerCash
value that will ultimately replace the death benefit
Nonforfeiture benefit options
Premiums that remain fixed for the life of the policy
What can a Guaranteed Renewable Health Insurance policy do? - answerPolicy can
have increasing premiums at the time of renewal
If the Commissioner of Insurance is no longer able to complete the term of office, who is
required to fill this vacancy? - answerGovernor
When must insurable interest be present in order for a life insurance to be valid? -
answerWhen the application is made
K is the insured and P is the sole beneficiary on an Accidental Death and
Dismemberment (AD&D) insurance policy. Both are involved in a fatal accident where K
dies before P. Under the Common Disaster provision, who the the proceeds go to? -
answerProceeds will be paid to P's estate
How long must every insurance agent maintain all records, books, and documents
related to each insurance transaction? - answer5 years
Payments concerning Individual Straight Life annuity.. - answerPayments are made to
an annuitant for life
,K is an agent who takes an application for individual life insurance and accepts a check
from the client. He submits the application and check to the insurance company,
however the check was never signed by the applicant. If the application is approved
when will the coverage be effective? - answerThe date the agent deliver the policy,
collected the initial premium, and obtained a good health statements from the insured.
In North Carolina , tontine policies are - answerProhibited
Pre-hospitalization authorization is considered an example of - answerManaged care:
Pre- hospitalization authorization is the insured's approval of an insured entering a
hospital. Many health policies require this as part of an effort to manage cost
A Key Employee policy is taken out by Company X on its vice president. Ten years
later, this employee leaves Company X and begins working for Company Y. If this
individual were to die and the policy is still in force and unchanged, where would the
death proceeds be directed? - answerCompany X - the company purchases, owns,
pays the premiums and is the beneficiary of the life insurance policy on the key person
A French insurance company conducting business in North Carolina would be known in
North Carolina as a(n) - answerAlien Company
S would like to sue dividends from her life insurance policy t purchase paid-ip additions.
What would be factors to determine how much coverage can be purchased? -
answerType of life insurance
S's attained age
Dividend amount used toward purchase
What organization are considered Managed Care? - answerPoint-of-Service plan (POS)
Preferred Provider Organization (PPO)
Health Maintenance Organization (HMO)
Statement in regards to a policy loan - answerPast-due interest on a policy loan is
added to the total debt
Before an insurer can increase the rates for an individual accident and health policy
owners, the insurer must provide ___ days before the effective rate increase. -
answer30
The automatic premium loan provision is designed to - answerAvoid a policy lapse
A Health Insurance Policy applicant unintentionally fails to list a previous visit to a
neurologist. If the policy is issued and the insurer later decided to contest the policy, it
must do so - answerWithin 2 years from the date of issue
N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life
insurance policy with level premiums, permanent protection, and be paid-up at
, retirement. Which of these should N purchase? - answer30 Pay Life - limited pay whole
life policies have level premiums that are limited to a certain period
What is not an unfair method of competition or deceptive practice? -
answerDemonstrating that a policy has higher benefits by using a comparison
What benefit does the Payor clause on a Juvenile Life policy provide? -
answerPremiums are waived if the payor becomes disabled
Credit Life Insurance is - answerIssued in an amount not to exceed the amount of the
loan
Z is an agent who violated the Insurance Information and Privacy Protection Act. Z was
the issued and served a statement of charges and notice of hearing by the
Commissioner of Insurance. Z's hearing date must be at least ___ days after service of
charges. - answer10
An Accident/Health policyholder has ___ days to return the policy and receive a full
refund on premiums. - answer10
What is considered to be a right given to a policy owner? - answerSurrendering the
policy's cash value
Assignments of ownership
Change the beneficiary, if revocable
The amount of coverage on a group credit life policy is limited to - answerThe insured's
total loan value
What is the consideration given by an insurer in the Consideration clause of a life
policy? - answerPromise to pay a death benefit to a named beneficiary
What is included in an annuity contract? - answerNonforfeiture benefit
Free-look period
Beneficiary
An agent must report to the Commissioner of Insurance any administrative action or
criminal charges taken against the agent within ___ days of the conviction date. -
answer10
What reimburses its insureds for covered medical expenses? - answerCommercial
Insurers - function on the reimbursement approach. Policy-owners brain medical
treatment form whatever source they feel is most appropriate and submit their changes
to they insurer for reimbursement
Which type of policy would pay an employee's salary if the employer was injured in a
bicycle accident and out of work for six weeks? - answerBusiness Overhead Expense -
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