NC Accident and Health Exam || A+ Graded Already.

The period in which illness-related disabilities are excluded from coverage. correct answers Probationary period An approach in which a certain amount of "points" are assigned to a procedure based on an amount relative to a maximum cost for similar procedures in that geographic area. correct answers Relative value approach Which type of policy allows the policyowner to renew the policy to a stated age without evidence of insurability, but allows for the insurance company to raise the premium on the entire class of insureds? correct answers Guaranteed Renewable The insurer cannot refer to any document that is not contained in the contract, is a function of which clause? correct answers Entire contract clause After a policy lapses and is subsequently reinstated, how long does it take for accident coverage to kick in? correct answers Immediately (sickness coverage may have a waiting period of about 10 days) What is the taxability of Disability Buy-Sell coverage? correct answers Premium payments are NOT deductible to the business as a business expense. However, benefits paid out are received tax free by the business. An example of a limited health accident and health insurance policy would be? correct answers Dread Disease Policy Travel Accident Policy A policy that covers all of the participants without naming them individually. correct answers Blanket Policy Taxability of LTC insurance. correct answers Benefits are income tax free (except for excessive benefits as determined by statute). Premiums may be deductible depending on the situation. Accidental death and dismemberment policies pay out benefits on what basis? correct answers Lump-Sum (Principal amount for loss of two limbs or death; capital amount for loss of one limb) The Commissioner examines and investigates all insurance institutions to ensure what? correct answers That they remain solvent and conduct business in compliance with state laws and regulations. How many hours of continuing education credits are required of an insurance agent? correct answers 24 hours every 2 years (3 of which are Ethics related) *Extra CE credit hours can be carried over to next license renewal period. T/F/. Failure to pay state income tax is grounds for an agent's license to be suspended or revoked. correct answers True