NC HEALTH INSURANCE ACTUAL EXAM
WITH QUESTIONS AND CORRECT
ANSWERS RATED A+
Which of the following will NOT be considered unfair
discrimination by insurers?
a)Assigning different risk classifications to applicants based on
gender identity
b)Discriminating in benefits and coverages based on the insured's
habits and lifestyle
c)Charging applicants with similar health histories different
premiums based on their ethnicity
d)Cancelling individual coverage based on the insured's marital
status Correct Answer b)Discriminating in benefits and coverages
based on the insured's habits and lifestyle
Discriminating between individuals of the same class with equal
life expectancies, or by reason of race, nationality, or ethnic group
would be considered unfair discrimination. Insurers are also not
allowed to cancel individual coverage due to a change in marital
status. Discriminating in benefits based on the insured's habits
and lifestyle (such as smoking or dangerous hobbies) is
acceptable.
,If a licensee fails to notify the Commissioner of insurer insolvency,
if known or suspected, and to provide a statement of relevant
facts, which of the following is TRUE?
a)The person will be subject to a fine.
b)There will be no repercussions for that; reporting of insurer
insolvencies is voluntary.
c)The Commissioner may suspend or revoke the person's
license.
d)The Commissioner will issue a cease and desist order. Correct
Answer c)The Commissioner may suspend or revoke the person's
license.
It is the duty of any licensed person, or employee or
representative of an insurance company to notify the
Commissioner of any violations of the General Statutes of the
Insurance Code, or insurer insolvency. The Commissioner may
suspend, revoke, or refuse to renew the license of any licensee
who willfully fails to comply with this section of the Insurance
Code.
Which statement accurately describes group disability income
insurance?
a)There are no participation requirements for employees.
,b)Short-term plans provide benefits for up to 1 year.
c)The extent of benefits is determined by the insured's income.
d)In long-term plans, monthly benefits are limited to 75% of the
insured's income. Correct Answer c)The extent of benefits is
determined by the insured's income.
Group plans usually specify the benefits based on a percentage
of the worker's income. Group long-term plans provide monthly
benefits usually limited to 60% of the individual's income.
In comparison to a policy that uses the accidental means
definition, a policy that uses the accidental bodily injury definition
would provide a coverage that is
a)More limited in general.
b)More limited in duration.
c)Broader in duration.
d)Broader in general. Correct Answer d)Broader in general.
A policy that uses the accidental bodily injury definition will
provide broader coverage than a policy that uses the accidental
means definition.
, An insurance institution or agent that discloses information in
violation of the information privacy and disclosure statutes of
North Carolina will be liable for
a)The legal costs incurred by the client.
b)Only such damages as can be proven in a court of law.
c)Damages sustained by the individual to whom the information
relates.
d)Any legal action brought by the client within 5 years. Correct
Answer c)Damages sustained by the individual to whom the
information relates
An insurance institution, agent, or insurance-support organization
that discloses information in violation shall be liable for damages
sustained by the individual to whom the information relates. No
individual, however, shall be entitled to a monetary award that
exceeds the actual damages sustained by the individual as a
result of a violation.
An insured pays a monthly premium of $100 for her health
insurance. What would be the duration of the grace period under
her policy?
a)7 days
b)10 days
WITH QUESTIONS AND CORRECT
ANSWERS RATED A+
Which of the following will NOT be considered unfair
discrimination by insurers?
a)Assigning different risk classifications to applicants based on
gender identity
b)Discriminating in benefits and coverages based on the insured's
habits and lifestyle
c)Charging applicants with similar health histories different
premiums based on their ethnicity
d)Cancelling individual coverage based on the insured's marital
status Correct Answer b)Discriminating in benefits and coverages
based on the insured's habits and lifestyle
Discriminating between individuals of the same class with equal
life expectancies, or by reason of race, nationality, or ethnic group
would be considered unfair discrimination. Insurers are also not
allowed to cancel individual coverage due to a change in marital
status. Discriminating in benefits based on the insured's habits
and lifestyle (such as smoking or dangerous hobbies) is
acceptable.
,If a licensee fails to notify the Commissioner of insurer insolvency,
if known or suspected, and to provide a statement of relevant
facts, which of the following is TRUE?
a)The person will be subject to a fine.
b)There will be no repercussions for that; reporting of insurer
insolvencies is voluntary.
c)The Commissioner may suspend or revoke the person's
license.
d)The Commissioner will issue a cease and desist order. Correct
Answer c)The Commissioner may suspend or revoke the person's
license.
It is the duty of any licensed person, or employee or
representative of an insurance company to notify the
Commissioner of any violations of the General Statutes of the
Insurance Code, or insurer insolvency. The Commissioner may
suspend, revoke, or refuse to renew the license of any licensee
who willfully fails to comply with this section of the Insurance
Code.
Which statement accurately describes group disability income
insurance?
a)There are no participation requirements for employees.
,b)Short-term plans provide benefits for up to 1 year.
c)The extent of benefits is determined by the insured's income.
d)In long-term plans, monthly benefits are limited to 75% of the
insured's income. Correct Answer c)The extent of benefits is
determined by the insured's income.
Group plans usually specify the benefits based on a percentage
of the worker's income. Group long-term plans provide monthly
benefits usually limited to 60% of the individual's income.
In comparison to a policy that uses the accidental means
definition, a policy that uses the accidental bodily injury definition
would provide a coverage that is
a)More limited in general.
b)More limited in duration.
c)Broader in duration.
d)Broader in general. Correct Answer d)Broader in general.
A policy that uses the accidental bodily injury definition will
provide broader coverage than a policy that uses the accidental
means definition.
, An insurance institution or agent that discloses information in
violation of the information privacy and disclosure statutes of
North Carolina will be liable for
a)The legal costs incurred by the client.
b)Only such damages as can be proven in a court of law.
c)Damages sustained by the individual to whom the information
relates.
d)Any legal action brought by the client within 5 years. Correct
Answer c)Damages sustained by the individual to whom the
information relates
An insurance institution, agent, or insurance-support organization
that discloses information in violation shall be liable for damages
sustained by the individual to whom the information relates. No
individual, however, shall be entitled to a monetary award that
exceeds the actual damages sustained by the individual as a
result of a violation.
An insured pays a monthly premium of $100 for her health
insurance. What would be the duration of the grace period under
her policy?
a)7 days
b)10 days
