North Carolina Life and Health Final
Exam with Complete Solutions 100%
Verified
An insurance company receives E's application for an individual health policy. E did not
complete all of the medical history questions because she could not remember the exact dates. E
signed the policy and submitted it to the insurance company anyway. A few weeks later, E
suffers a heart attack and is hospitalized without completing the medical history questions and
paying the initial premium. E is not insured. Which of the following clauses details the
conditions that E did not meet? ✔✔Consideration clause
Companies in North Carolina may transact solicitations for insurance ONLY through
✔✔licensed agents
,In order to establish a Health Reimbursement Arrangement (HRA), it MUST ✔✔be established
by the employer
What does the insuring agreement in a Life insurance contract establish? ✔✔An insurer's basic
promise
J would like to maintain the right to change beneficiaries. Which beneficiary designation should
be used? ✔✔Revocable
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as
beneficiary. M has the right to change the beneficiary designation at anytime. What type of
beneficiary is his son? ✔✔Revocable
The Insurance Information and Privacy Protection Act is designed to limit or direct the
information collection activities of all of the following EXCEPT ✔✔insurance regulators
Approved premium rates for group health insurance shall be guaranteed by the insurer for an
initial period of not LESS than how many months? ✔✔Approved premium rates for group health
insurance shall be guaranteed by the insurer for an initial period of not less than 12 months.
, When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? ✔✔at
future dates specified in the contract with no evidence of insurability required
Which of the following is the MOST important factor when deciding how much Disability
Income coverage an applicant should purchase? ✔✔Applicant's monthly income
Non-occupational disability coverage is designed for ✔✔employees who suffer non-work related
disabilities, since work-related disabilities are covered by Workers' Compensation
When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)
✔✔exclusion
An agent who sells an individual life insurance policy in North Carolina MUST deliver to the
policyowner ✔✔A Policy Summary and Buyer's Guide
P received Disability income benefits for 3 months then returns to work. She is able to work one
month before her condition returns, leaving her disabled once again. What would the insurance
company most likely regard this second period of disability as? ✔✔A recurrent disability
What benefit does the Payor clause on a Juvenile Life policy provide? ✔✔Premiums are waived
if payor becomes disabled
Which of the following is the MOST important factor when deciding how much Disability
Exam with Complete Solutions 100%
Verified
An insurance company receives E's application for an individual health policy. E did not
complete all of the medical history questions because she could not remember the exact dates. E
signed the policy and submitted it to the insurance company anyway. A few weeks later, E
suffers a heart attack and is hospitalized without completing the medical history questions and
paying the initial premium. E is not insured. Which of the following clauses details the
conditions that E did not meet? ✔✔Consideration clause
Companies in North Carolina may transact solicitations for insurance ONLY through
✔✔licensed agents
,In order to establish a Health Reimbursement Arrangement (HRA), it MUST ✔✔be established
by the employer
What does the insuring agreement in a Life insurance contract establish? ✔✔An insurer's basic
promise
J would like to maintain the right to change beneficiaries. Which beneficiary designation should
be used? ✔✔Revocable
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as
beneficiary. M has the right to change the beneficiary designation at anytime. What type of
beneficiary is his son? ✔✔Revocable
The Insurance Information and Privacy Protection Act is designed to limit or direct the
information collection activities of all of the following EXCEPT ✔✔insurance regulators
Approved premium rates for group health insurance shall be guaranteed by the insurer for an
initial period of not LESS than how many months? ✔✔Approved premium rates for group health
insurance shall be guaranteed by the insurer for an initial period of not less than 12 months.
, When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? ✔✔at
future dates specified in the contract with no evidence of insurability required
Which of the following is the MOST important factor when deciding how much Disability
Income coverage an applicant should purchase? ✔✔Applicant's monthly income
Non-occupational disability coverage is designed for ✔✔employees who suffer non-work related
disabilities, since work-related disabilities are covered by Workers' Compensation
When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)
✔✔exclusion
An agent who sells an individual life insurance policy in North Carolina MUST deliver to the
policyowner ✔✔A Policy Summary and Buyer's Guide
P received Disability income benefits for 3 months then returns to work. She is able to work one
month before her condition returns, leaving her disabled once again. What would the insurance
company most likely regard this second period of disability as? ✔✔A recurrent disability
What benefit does the Payor clause on a Juvenile Life policy provide? ✔✔Premiums are waived
if payor becomes disabled
Which of the following is the MOST important factor when deciding how much Disability
