XCEL SOLUTIONS: NORTH CAROLINA LIFE AND HEALTH STATE - EXAM SIMULATOR 1 (PART I)|UPDATED&VERIFIED|100% SOLVED|GUARANTEED SUCCESS

P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount? Accidental Death and Dismemberment clause An AD&D clause provides benefits for death due to an accident or for the loss of one or more hands, feet, arms, legs, or loss of sight. XYZ insurance Company would like to begin conducting business in NC. Before XYZ can issues or deliver a Health policy, the form, classifications of risks, and premium rates MUST be filed with the Commissioner of Insurance Before an insurance policy is issued or delivered, the form, classification of risks, and premium rates must be filed with the Commissioner of Insurance. Chemical dependency treatment under a Group Health policy MUST include (over the life of the contract) a minimum benefit of $16,000 Every Group Health Policy providing benefits for chemical dependency treatments must include a minimum benefit of $16,000 for the life of the contract. What is one of the requirements for an applicant to become licensed as a North Carolina accident and health insurance agent? Complete at least 20 hours of instruction approved by the Commissioner of Insurance. All individual applicants for licensing as agents shall furnish evidence to the Commissioner of successful completion of at least 20 hours of instruction for each license. Under a Basic Medical Expense policy, what does the hospitalization expense portion cover? hospital room and board. The hospitalization expense of a Basic Medical Expense policy pays for hospital room and board. What is the maximum Social Security Disability benefit amount an insured can receive? 100% of the insured's Primary Insurance Amount (PIA). The MAXIMUM Social Security Disability benefit an insured may receive is equal to 100% of the insured's Primary Insurance Amount (PIA). Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the: marital deduction. The transfer of a decedent's IRA account balance to a surviving spouse qualifies for the Unlimited Marital Deduction, which generally exempts the transfer from estate taxes. A Life insurance policyowner would like to take out a policy loan against the cash value in his Whole Life policy. The interest rate applied to this loan may vary over time. This is referred to as a(n) ________ rate loan. Variable. The interest rate on a Variable rate cash value loan may vary over time. Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company. An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective? When the conditions of the receipt are met. A conditional receipt indicates that certain conditions must be met in order for the insurance coverage to go into effect. 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 within 2 years from the date of issue. In this situation, the insurance company must contest the policy within 2 years from the date of issue. How does a typical Variable Life Policy investment account grow? Through mutual funds, stocks, bonds. A Variable Life Policy has investment values based instruments such as mutual funds, stocks, and bonds. S is a life insurance policyowner and enters into a written agreement to receive immediate cash in exchange for the sale and transfer of her life insurance policy. This agreement is referred to as a(n) Viatical Settlement. A written agreement to provide a Life Insurance Policy holder immediate cash in exchange for the sale and transfer of a Life Insurance Policy is a Viatical Settlement. Which of the following statements BEST describes dental care indemnity coverage? Services are reimbursed after insurer receives the invoice. Dental care indemnity plans reimburse services only after the carrier receives the bill. K has an Accidental Death and Dismemberment (AD&D) insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? Daughter. With a common disaster provision, a policyowner can be sure that if both the insured and the primary beneficiary die within a short period of time, the death benefits will be paid to the contingent beneficiary. Comprehensive Major Medical policies usually combine: Major Medical with Basic Hospital/Surgical coverage. A Comprehensive Major Medical Policy combines Basic Hospital/Surgical and Major Medical insurance. The Accelerated Death Benefit provision in a life insurance policy is also known as a(n): Living Benefit. The Accelerated Death Benefit provision in a life insurance policy is also known as a "Living Benefit".