North Carolina Health Insurance
EXAM QUESTIONS AND VERIFIED ACCURATE
SOLUTION |GET IT 100% ACCURATE
An individual is insured under his employer's group disability income policy. The insured suffered in
accident while on vacation that left him unable to work for four months. If the disability income policy
pays the benefit, which of the following would be true?
A. Benefits that are attributed to employer contributions are fully taxable to the employee as income
B. The insured has to wait two more months to start receiving the benefits
C. For the business, payments are not considered tax deductible as an ordinary business expense
D. The insured can deduct his medical expense benefits from his income tax - ANSWER-A.
An insurance contract must contain all of the following to be legally binding EXCEPT
A. Offer and acceptance
B. Consideration
C. Competent parties
D. Beneficiaries consent - ANSWER-D.
An insurance institution or agent that disclose his information in violation of the information privacy and
disclosure statutes of North Carolina will be liable for
A. The legal cost 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 five years - ANSWER-C.
An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that
he will not be eligible for benefits for at least 30 days. This would indicate that his policy was written
with a 30 day
A. Elimination period
B. Blackout period
,C. Probationary period
D. Disability period - ANSWER-A.
An insured is involved in an accident that renders him permanently deaf, although he does not sustain
any other injuries. The insured is still able to perform his current job. To what extent will he receive
presumptive disability benefits?
A. Partial benefits
B. Full benefits for 2 years
C. No benefits
D. Full benefits - ANSWER-D.
An insurer devises in intimidation strategy in order to corner a large portion of the insurance market.
Which of the following best describes this practice?
A. Unfair discrimination
B. Defamation
C. Illegal
D. A legal advertising strategy - ANSWER-C.
An insurer or authorized representative of the insurer that terminates the appointment, employment,
contract, or other insurance business relationship with an agent shall notify the commissioner
A. Within 60 days after the effective date of termination
B. Within 45 days after the effective date of termination
C. 30 days prior to the effective date of termination
D. Within 30 days after the effective date of termination - ANSWER-D.
And a disability income policy, all the following are considered presumptive disabilities EXCEPT
A. Loss of two limbs
B. A loss of speech
C. Loss of one eye
D. Loss of hearing - ANSWER-C.
,And insured purchased a disability income policy with a 10 year benefit period. The policy stated a 20
day probationary period for illness. If the insured is hospitalized with an illness two weeks after the
policy was issued, how much will the policy pay?
A. It will pay until the insured is released from the hospital
B. Nothing, illness is not covered during the first 20 days of the contract
C. The insured will receive a return of premium
D. It will pay up to 10 years of benefits - ANSWER-B.
Any agent, broker or limited representative who acts for a person other than himself negotiating a
contract of insurance, for the purpose of receiving the premium, is deemed to be
A. In violation of the free credit act
B. An agent of the company
C. A designated representative of the agent
D. A managing partner of the insured - ANSWER-B.
As it pertains to group health insurance, the continuation provision stipulates that
A. Terminated employees may convert to an individual policy only upon proof of insurability
B. Group coverage must be extended for terminated employees up to a certain period of time at the
employers expense
C. Group coverage must be extended for terminated employees up to a certain period of time at the
employees expense
D. Retiring employees must be allowed to convert their group coverage to individual policies - ANSWER-
C.
Certain conditions, such as dismemberment or total and permanent blindness, will automatically qualify
the insured for full disability benefits. Which disability policy provision does this describe?
A. Residual disability
B. Presumptive disability
C. Dismemberment disability
D. Partial disability - ANSWER-B.
, Concerning group medical and dental insurance, which of the following statements is INCORRECT?
A. Employee paid premiums may be deducted if certain conditions are met
B. Employee benefits are tax-deductible the year in which they were received
C. Benefits received by the employee are free from federal income tax
D. Premiums paid by the employer our deductible as a business expense - ANSWER-B.
Disability income coverage specifies that the policy covers the insured if he is unable to perform any job
for which he is qualified. In this case, total disability is defined as
A. Own occupation - less restrictive than other definitions
B. Any occupation - more restrictive than other definitions
C. Any occupation - less restrictive than other definitions
D. Own occupation - More restrictive than other definitions - ANSWER-B.
Group health insurance is characterized by all of the following except
A. A master contract
B. Lower administrative costs
C. Conversion privilege
D. Adverse selection - ANSWER-D.
How long does a North Carolina agent have to notify the department of insurance in the event of a
change in residence address?
A. A change of residence address does not require notification
B. 10 business days
C. 30 business days
D. 60 business days - ANSWER-B.
How soon before the child's attainment of limiting age must proof of intellectual or physical disability be
provided to an insurer, in order for coverage to continue on the child?
A. 15 days
EXAM QUESTIONS AND VERIFIED ACCURATE
SOLUTION |GET IT 100% ACCURATE
An individual is insured under his employer's group disability income policy. The insured suffered in
accident while on vacation that left him unable to work for four months. If the disability income policy
pays the benefit, which of the following would be true?
A. Benefits that are attributed to employer contributions are fully taxable to the employee as income
B. The insured has to wait two more months to start receiving the benefits
C. For the business, payments are not considered tax deductible as an ordinary business expense
D. The insured can deduct his medical expense benefits from his income tax - ANSWER-A.
An insurance contract must contain all of the following to be legally binding EXCEPT
A. Offer and acceptance
B. Consideration
C. Competent parties
D. Beneficiaries consent - ANSWER-D.
An insurance institution or agent that disclose his information in violation of the information privacy and
disclosure statutes of North Carolina will be liable for
A. The legal cost 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 five years - ANSWER-C.
An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that
he will not be eligible for benefits for at least 30 days. This would indicate that his policy was written
with a 30 day
A. Elimination period
B. Blackout period
,C. Probationary period
D. Disability period - ANSWER-A.
An insured is involved in an accident that renders him permanently deaf, although he does not sustain
any other injuries. The insured is still able to perform his current job. To what extent will he receive
presumptive disability benefits?
A. Partial benefits
B. Full benefits for 2 years
C. No benefits
D. Full benefits - ANSWER-D.
An insurer devises in intimidation strategy in order to corner a large portion of the insurance market.
Which of the following best describes this practice?
A. Unfair discrimination
B. Defamation
C. Illegal
D. A legal advertising strategy - ANSWER-C.
An insurer or authorized representative of the insurer that terminates the appointment, employment,
contract, or other insurance business relationship with an agent shall notify the commissioner
A. Within 60 days after the effective date of termination
B. Within 45 days after the effective date of termination
C. 30 days prior to the effective date of termination
D. Within 30 days after the effective date of termination - ANSWER-D.
And a disability income policy, all the following are considered presumptive disabilities EXCEPT
A. Loss of two limbs
B. A loss of speech
C. Loss of one eye
D. Loss of hearing - ANSWER-C.
,And insured purchased a disability income policy with a 10 year benefit period. The policy stated a 20
day probationary period for illness. If the insured is hospitalized with an illness two weeks after the
policy was issued, how much will the policy pay?
A. It will pay until the insured is released from the hospital
B. Nothing, illness is not covered during the first 20 days of the contract
C. The insured will receive a return of premium
D. It will pay up to 10 years of benefits - ANSWER-B.
Any agent, broker or limited representative who acts for a person other than himself negotiating a
contract of insurance, for the purpose of receiving the premium, is deemed to be
A. In violation of the free credit act
B. An agent of the company
C. A designated representative of the agent
D. A managing partner of the insured - ANSWER-B.
As it pertains to group health insurance, the continuation provision stipulates that
A. Terminated employees may convert to an individual policy only upon proof of insurability
B. Group coverage must be extended for terminated employees up to a certain period of time at the
employers expense
C. Group coverage must be extended for terminated employees up to a certain period of time at the
employees expense
D. Retiring employees must be allowed to convert their group coverage to individual policies - ANSWER-
C.
Certain conditions, such as dismemberment or total and permanent blindness, will automatically qualify
the insured for full disability benefits. Which disability policy provision does this describe?
A. Residual disability
B. Presumptive disability
C. Dismemberment disability
D. Partial disability - ANSWER-B.
, Concerning group medical and dental insurance, which of the following statements is INCORRECT?
A. Employee paid premiums may be deducted if certain conditions are met
B. Employee benefits are tax-deductible the year in which they were received
C. Benefits received by the employee are free from federal income tax
D. Premiums paid by the employer our deductible as a business expense - ANSWER-B.
Disability income coverage specifies that the policy covers the insured if he is unable to perform any job
for which he is qualified. In this case, total disability is defined as
A. Own occupation - less restrictive than other definitions
B. Any occupation - more restrictive than other definitions
C. Any occupation - less restrictive than other definitions
D. Own occupation - More restrictive than other definitions - ANSWER-B.
Group health insurance is characterized by all of the following except
A. A master contract
B. Lower administrative costs
C. Conversion privilege
D. Adverse selection - ANSWER-D.
How long does a North Carolina agent have to notify the department of insurance in the event of a
change in residence address?
A. A change of residence address does not require notification
B. 10 business days
C. 30 business days
D. 60 business days - ANSWER-B.
How soon before the child's attainment of limiting age must proof of intellectual or physical disability be
provided to an insurer, in order for coverage to continue on the child?
A. 15 days
