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NC Life & Health Law Questions and Answers Fully Solved
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NC Life & Health Law
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NC Life & Health LawWhich kind of health insurance policy assures renewability up to a specified age of the
insured, but allows the insurer to change the premium rates on a class basis?
A) Noncancelable
B) Guaranteed renewable
C) Optionally renewable
D) Cancelable - answerB. Guaranteed Renewable
The Life Insurance Replacement regulation applies to:
A) Credit life insurance
B) Group life insurance
C) Group annuity contracts
D) Individual whole life insurance - answerD. Individual Whole Life Contracts
An insurer has ____ days to provide claim forms to claimants after receiving notice.
A) 7
B) 14
C) 15
D) 30 - answerC. 15
An individual who is insured under a group health insurance policy at their place of
employment, upon termination, may continue coverage under the group policy, provided
they:
A) Can prove insurability
B) Have had no claims in the prior 6 months
C) Are unable to qualify for an individual policy because of a work related injury
D) Have been continuously insured under the group policy for 3 consecutive months -
answerD. Have been continuously insured under the group policy for 3 consecutive
months
Underwriters are concerned with something known as "adverse selection," which
means:
A) The expected loss ratio is expected to exceed the expense ratio
B) The greater tendency of less healthy risks to apply for and obtain insurance
C) Having to charge lower premiums for preferred risks
D) Having to charge higher premiums for substandard risks - answerB. The greater
tendency of less healthy risks to apply for and obtain insurance
Which of the following is the usual grace period for a semiannual premium health
insurance policy?
A) 7 days
, B) 10 days
C) 30 days
D) 31 days - answerD. 31 days
To qualify for group life insurance coverage, the group must consist of at least ____
A) 1
B) 5
C) 10
D) 25 - answerC. 10
Under the misstatement of age provision in a health insurance policy, what can an
insurer do if it discovers that an insured gave a wrong age at the time of application?
A) cancel the policy
B) increase the premium
C) adjust the benefits
D) assess a penalty - answerC. adjust the benefits
What is the purpose of the Insurance Information and Privacy Protection Act?
A) To prevent insurance institutions, insurance-support organizations, and agents from
collecting any information on an individual applying for insurance
B) To prevent insurance applicants and policyholders from obtaining the reasons for
adverse underwriting decisions
C) To prevent individuals from accessing any information that is collected about them in
connection with insurance transactions
D) To establish standards for the collection, use, and disclosure of information gathered
in connection with insurance transactions by insurance institutions, agents, or insurance
support organizations - answerD. To establish standards for the collection, use, and
disclosure of information gathered in connection with insurance transactions by
insurance institutions, agents, or insurance support organizations
Applicants for life and health insurance agent's licenses must be at least ______ of age.
A) 15
B) 18
C) 21
D) 23 - answerB. 18
In which of the following health insurance programs is the insurer more likely to pay for
an annual physical exam for the insured?
A) PPO
B) HMO
C) IPA
D) PSO - answerB. HMO
Diverting insurance funds for personal use is an example of
A) replacement
B) rebating
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