NUR 451, NC INSURANCE EXAM LATEST STUDY GUIDE QUESTIONS WITH
CORRECT ANSWERS 2026
The Life and Health Insurance guaranty association of North Carolina has regulations that
ONLY apply t o - CORRECT ANSWER -
Life and Health insurance policies issued by companies authorized in North Carolina.
When a life insurance policy exceeds certain IRS table values, the result would create which of
the foll owing - CORRECT ANSWER -Modified Endowment Contract (MEC)
Which of the following types of policies pays a benefit if the insured goes blind? - CORRECT
ANSWER - AD&D
If a contract of adhesion contains complicated language, to whom would the interpretation be in
favor of? - CORRECT ANSWER -Insured
An applicant may NOT be refused insurance coverage due to - CORRECT ANSWER -Race
A(n) life policy offers the owner investments in products such as money-market funds,
long-term bond, and equities - CORRECT ANSWER -Variable
A employee with 25,000 group term life coverage was recently fired. This employee's group
coverage may be converted to a - CORRECT ANSWER -25,000 indivisual
Credit life insurance is - CORRECT ANSWER -issued in an amount not to exceed the amount of
the loan
an individual working part-
time has an annual income of 25,000. If this individual has an IRA, what is the maximum
deductible IR A contribution allowable? - CORRECT ANSWER -2,500
A health insurance policy applicant unintentionally fails to list a previous visit to a neurologist. If
the p olicy is issued and the insurer later decides to contest the policy, it must do so -
CORRECT ANSWER - within 2 years from the date of issue
, which of the following must be included with the continuation of coverage of group Hospital,
surgical, and major medical - CORRECT ANSWER -hospital expenses
which of the following is the reimbursement of benefits for the treatment of beneficiary's injury
cause d by third party - CORRECT ANSWER -Subrogation
Medicaid was designed to assist individuals who are - CORRECT
ANSWER - below a specific income limit
An eligible employee has a MAXIMUM of days after their first day of employment to be added
to grou p health coverage - CORRECT ANSWER -90
A Business Overhead Expense policy would cover which of the following if a business owner
becomes disabled? - CORRECT ANSWER -Utilities and office rent
The Coordination of Benefits provision: - CORRECT ANSWER -
Prevents an insured covered by two health plans from making a profit on a covered loss
Q applied for life insurance and submitted the initial premium on January 1. The policy was
issued Feb ruary 1, but it was not delivered by the agent until February 7. QUis dissatisfied and
returns the policy February 13. How will the insurer handle this situation? - CORRECT
ANSWER -
Policy was returned within the free-look period, premium will be fully refunded
Which of these statements in INCORRECT regarding a Preferred Provider Organization
(PPO)? - CORRECT ANSWER -PPO's are NOT a type of managed care systems
XYZ insurance company would like to begin conducting business in North Carolina. Before XYZ
can issu e or deliver a Health policy, the form, classification of risks, and premium rates
MUST be filled with th e - CORRECT ANSWER -commissioner of insurance
All of these insurance products require an agent to have proper FINRA securities registration in
order t o sell them, EXCEPT for: - CORRECT ANSWER -Modified Whole Life
CORRECT ANSWERS 2026
The Life and Health Insurance guaranty association of North Carolina has regulations that
ONLY apply t o - CORRECT ANSWER -
Life and Health insurance policies issued by companies authorized in North Carolina.
When a life insurance policy exceeds certain IRS table values, the result would create which of
the foll owing - CORRECT ANSWER -Modified Endowment Contract (MEC)
Which of the following types of policies pays a benefit if the insured goes blind? - CORRECT
ANSWER - AD&D
If a contract of adhesion contains complicated language, to whom would the interpretation be in
favor of? - CORRECT ANSWER -Insured
An applicant may NOT be refused insurance coverage due to - CORRECT ANSWER -Race
A(n) life policy offers the owner investments in products such as money-market funds,
long-term bond, and equities - CORRECT ANSWER -Variable
A employee with 25,000 group term life coverage was recently fired. This employee's group
coverage may be converted to a - CORRECT ANSWER -25,000 indivisual
Credit life insurance is - CORRECT ANSWER -issued in an amount not to exceed the amount of
the loan
an individual working part-
time has an annual income of 25,000. If this individual has an IRA, what is the maximum
deductible IR A contribution allowable? - CORRECT ANSWER -2,500
A health insurance policy applicant unintentionally fails to list a previous visit to a neurologist. If
the p olicy is issued and the insurer later decides to contest the policy, it must do so -
CORRECT ANSWER - within 2 years from the date of issue
, which of the following must be included with the continuation of coverage of group Hospital,
surgical, and major medical - CORRECT ANSWER -hospital expenses
which of the following is the reimbursement of benefits for the treatment of beneficiary's injury
cause d by third party - CORRECT ANSWER -Subrogation
Medicaid was designed to assist individuals who are - CORRECT
ANSWER - below a specific income limit
An eligible employee has a MAXIMUM of days after their first day of employment to be added
to grou p health coverage - CORRECT ANSWER -90
A Business Overhead Expense policy would cover which of the following if a business owner
becomes disabled? - CORRECT ANSWER -Utilities and office rent
The Coordination of Benefits provision: - CORRECT ANSWER -
Prevents an insured covered by two health plans from making a profit on a covered loss
Q applied for life insurance and submitted the initial premium on January 1. The policy was
issued Feb ruary 1, but it was not delivered by the agent until February 7. QUis dissatisfied and
returns the policy February 13. How will the insurer handle this situation? - CORRECT
ANSWER -
Policy was returned within the free-look period, premium will be fully refunded
Which of these statements in INCORRECT regarding a Preferred Provider Organization
(PPO)? - CORRECT ANSWER -PPO's are NOT a type of managed care systems
XYZ insurance company would like to begin conducting business in North Carolina. Before XYZ
can issu e or deliver a Health policy, the form, classification of risks, and premium rates
MUST be filled with th e - CORRECT ANSWER -commissioner of insurance
All of these insurance products require an agent to have proper FINRA securities registration in
order t o sell them, EXCEPT for: - CORRECT ANSWER -Modified Whole Life
