NC INSURANCE LICENSING EXAM WITH
COMPLETE QUESTIONS AND CORRECT
ANSWERS
Which of the following health insurance coverages is BEST suited
for meeting the expenses of catastrophic illness? Correct Answer
Major Medical
A terminated employee must have been covered for at LEAST
____ month(s) under a Group Health Insurance policy
immediately prior to termination in order to be eligible for
continuation of coverage. Correct Answer 3
K is an agent who takes an application for individual life insurance
and accepts a check from the client. He submits the application
and check to the insurance company, however the check was
never signed by the applicant. If the application is approved, when
will coverage be effective? Correct Answer The date the agent
delivered the policy, collected the initial premium, and obtained a
good health statement from the insured
A physician opens up a new practice and qualifies for a
$7,000/month Disability Income policy. What rider would the
physician add if he wants the ability to increase his policy benefit
as his practice and income grow? Correct Answer Guaranteed
Insurability Option rider
,With Optionally Renewable Health policies, the insurer may:
Correct Answer review the policy annually and determine whether
or not to renew it
The Consideration clause in a life insurance contract contains
what pertinent information Correct Answer Amount of premium
payments and when they are due
An insured covered by Accidental Death and Dismemberment
(AD&D) insurance has just died. What will happen if the primary
beneficiary had already died before the insured and contingent
beneficiary? Correct Answer Proceeds will go to the contingent
beneficiary
What kind of insurance policy supplies an income stream over a
set period of time that starts when the insured dies? Correct
Answer Family Maintenance Policy
All of the following statements are true regarding a policy's Grace
period, EXCEPT: Correct Answer Past due premiums are waived
The Universal Life Policy is called an unbundled Life Policy
because the policyholder can see the expense charges, the
interest earned, and the: Correct Answer Cost of insurance
, What is one of the requirements for an applicants for an applicant
to become licensed as a North Carolina accident and health
insurance agent? Correct Answer Complete at least 20 hours of
instruction approved by the Commissioner of Insurance
A policyowner's rights are limited under which beneficiary
designation? Correct Answer Irrevocable
R had received full disability income benefits for 6 months. When
he returns to work, he is only able to resume half his normal daily
workload. Which provision pays reduced benefits to R while he is
not working at full capacity? Correct Answer Residual Disability
Medicare Part A and Part B do NOT pay for Correct Answer
dental work
Group/voluntary long-term care policy premiums are typically
deducted from the employee's income and Correct Answer are
less costly as compared to individual long term care coverage
When an employee is required to pay a portion of the premium for
an employer/employee group health plan, the employee is
covered under which of the following plans Correct Answer
Contributory
COMPLETE QUESTIONS AND CORRECT
ANSWERS
Which of the following health insurance coverages is BEST suited
for meeting the expenses of catastrophic illness? Correct Answer
Major Medical
A terminated employee must have been covered for at LEAST
____ month(s) under a Group Health Insurance policy
immediately prior to termination in order to be eligible for
continuation of coverage. Correct Answer 3
K is an agent who takes an application for individual life insurance
and accepts a check from the client. He submits the application
and check to the insurance company, however the check was
never signed by the applicant. If the application is approved, when
will coverage be effective? Correct Answer The date the agent
delivered the policy, collected the initial premium, and obtained a
good health statement from the insured
A physician opens up a new practice and qualifies for a
$7,000/month Disability Income policy. What rider would the
physician add if he wants the ability to increase his policy benefit
as his practice and income grow? Correct Answer Guaranteed
Insurability Option rider
,With Optionally Renewable Health policies, the insurer may:
Correct Answer review the policy annually and determine whether
or not to renew it
The Consideration clause in a life insurance contract contains
what pertinent information Correct Answer Amount of premium
payments and when they are due
An insured covered by Accidental Death and Dismemberment
(AD&D) insurance has just died. What will happen if the primary
beneficiary had already died before the insured and contingent
beneficiary? Correct Answer Proceeds will go to the contingent
beneficiary
What kind of insurance policy supplies an income stream over a
set period of time that starts when the insured dies? Correct
Answer Family Maintenance Policy
All of the following statements are true regarding a policy's Grace
period, EXCEPT: Correct Answer Past due premiums are waived
The Universal Life Policy is called an unbundled Life Policy
because the policyholder can see the expense charges, the
interest earned, and the: Correct Answer Cost of insurance
, What is one of the requirements for an applicants for an applicant
to become licensed as a North Carolina accident and health
insurance agent? Correct Answer Complete at least 20 hours of
instruction approved by the Commissioner of Insurance
A policyowner's rights are limited under which beneficiary
designation? Correct Answer Irrevocable
R had received full disability income benefits for 6 months. When
he returns to work, he is only able to resume half his normal daily
workload. Which provision pays reduced benefits to R while he is
not working at full capacity? Correct Answer Residual Disability
Medicare Part A and Part B do NOT pay for Correct Answer
dental work
Group/voluntary long-term care policy premiums are typically
deducted from the employee's income and Correct Answer are
less costly as compared to individual long term care coverage
When an employee is required to pay a portion of the premium for
an employer/employee group health plan, the employee is
covered under which of the following plans Correct Answer
Contributory
