NORTH CAROLINA LIFE AND HEALTH
INSURANCE FINAL EXAM 2026/2027 WITH
ACTUAL QUESTIONS & 100% VERIFIED
CORRECT ANSWERS (GRADED A+) 100%
GUARANTEED SUCCESS
K works for XYZ Clothing Store from September through December each year. K
works 45 hours a week for this period of time. The employer's Group Policy would
consider K - CORRECT ANSWER ✔✔- not eligible for the insurance because as a
seasonal employee K does not meet the definition of "employee" under North
Carolina law
S filed a written Proof of Loss for a Disability Income claim on September 1. The
insurance company did not respond to the claim. S can take legal action against the
insurer beginning - CORRECT ANSWER ✔✔- November 1
Which of the following is the MOST important factor when deciding how much
Disability Income coverage an applicant should purchase? - CORRECT ANSWER
✔✔- The applicant’s income level (earned income).
M completes an application for life insurance but does not pay the initial premium.
All of these actions must occur before M's policy goes into effect EXCEPT -
CORRECT ANSWER ✔✔- free-look period has expired
Additional coverage can be added to a Whole Life policy by adding a(n) -
CORRECT ANSWER ✔✔- decreasing term rider
1|Page
,All of the following actions are considered rebating EXCEPT - CORRECT
ANSWER ✔✔- sharing commissions with other licensed and appointed agents
One of the stated purposes of the Life and Health Insurance Guaranty Association
is to - CORRECT ANSWER ✔✔- assist in the prevention of insurer insolvencies
Which of the following statements is CORRECT about the period in which a Term
Policy can be converted? - CORRECT ANSWER ✔✔- It varies according to the
contracts
Insurance agents MUST obtain a license from North Carolina's - CORRECT
ANSWER ✔✔- Commissioner of Insurance
An accident policy will most likely pay a benefit for a(n) - CORRECT ANSWER
✔✔- off-the-job accident
K becomes ill after traveling overseas and is unable to work for 3 months. What
kind of policy would cover her loss of income? - CORRECT ANSWER ✔✔-
Disability Income
K has a health policy that must be renewed by the insurer and the premiums can
only be increased if applied to the entire class of insureds. This type of policy is
considered - CORRECT ANSWER ✔✔- guaranteed renewable
M's insurance company denied a reinstatement application for her lapsed health
insurance policy. The company did not notify M of this denial. How many days
from the reinstatement application date does the insurance company have to notify
M of the denial before the policy will be automatically placed back in force? -
CORRECT ANSWER ✔✔- 45 days
2|Page
, B is a teacher who was injured in a car accident and cannot work. She is now
receiving monthly benefits as a result of this accident. Which type of policy does B
have? - CORRECT ANSWER ✔✔- Disability Income
Which of the following services is NOT covered under a hospitalization expense
policy? - CORRECT ANSWER ✔✔- surgeon's fees
Statements made on an insurance application that are believed to be true to the best
of the applicant's knowledge are called - CORRECT ANSWER ✔✔-
representations
M completes an application for life insurance but does not pay the initial premium.
All of these actions must occur before M's policy goes into effect EXCEPT -
CORRECT ANSWER ✔✔- free-look period has expired
Rick recently died and left behind an individual IRA account in his name. His
widow was forwarded the balance of the IRA. The widow qualifies for the -
CORRECT ANSWER ✔✔- marital deduction
J is 35-years old and looking to purchase a whole life insurance policy. Which of
the following types of policies will provide the most rapid growth of cash value? -
CORRECT ANSWER ✔✔- 20-pay Life
The most important factor to consider when determining whether to convert term
insurance at the insured's attained age or the insured's original age is - CORRECT
ANSWER ✔✔- cost
3|Page
INSURANCE FINAL EXAM 2026/2027 WITH
ACTUAL QUESTIONS & 100% VERIFIED
CORRECT ANSWERS (GRADED A+) 100%
GUARANTEED SUCCESS
K works for XYZ Clothing Store from September through December each year. K
works 45 hours a week for this period of time. The employer's Group Policy would
consider K - CORRECT ANSWER ✔✔- not eligible for the insurance because as a
seasonal employee K does not meet the definition of "employee" under North
Carolina law
S filed a written Proof of Loss for a Disability Income claim on September 1. The
insurance company did not respond to the claim. S can take legal action against the
insurer beginning - CORRECT ANSWER ✔✔- November 1
Which of the following is the MOST important factor when deciding how much
Disability Income coverage an applicant should purchase? - CORRECT ANSWER
✔✔- The applicant’s income level (earned income).
M completes an application for life insurance but does not pay the initial premium.
All of these actions must occur before M's policy goes into effect EXCEPT -
CORRECT ANSWER ✔✔- free-look period has expired
Additional coverage can be added to a Whole Life policy by adding a(n) -
CORRECT ANSWER ✔✔- decreasing term rider
1|Page
,All of the following actions are considered rebating EXCEPT - CORRECT
ANSWER ✔✔- sharing commissions with other licensed and appointed agents
One of the stated purposes of the Life and Health Insurance Guaranty Association
is to - CORRECT ANSWER ✔✔- assist in the prevention of insurer insolvencies
Which of the following statements is CORRECT about the period in which a Term
Policy can be converted? - CORRECT ANSWER ✔✔- It varies according to the
contracts
Insurance agents MUST obtain a license from North Carolina's - CORRECT
ANSWER ✔✔- Commissioner of Insurance
An accident policy will most likely pay a benefit for a(n) - CORRECT ANSWER
✔✔- off-the-job accident
K becomes ill after traveling overseas and is unable to work for 3 months. What
kind of policy would cover her loss of income? - CORRECT ANSWER ✔✔-
Disability Income
K has a health policy that must be renewed by the insurer and the premiums can
only be increased if applied to the entire class of insureds. This type of policy is
considered - CORRECT ANSWER ✔✔- guaranteed renewable
M's insurance company denied a reinstatement application for her lapsed health
insurance policy. The company did not notify M of this denial. How many days
from the reinstatement application date does the insurance company have to notify
M of the denial before the policy will be automatically placed back in force? -
CORRECT ANSWER ✔✔- 45 days
2|Page
, B is a teacher who was injured in a car accident and cannot work. She is now
receiving monthly benefits as a result of this accident. Which type of policy does B
have? - CORRECT ANSWER ✔✔- Disability Income
Which of the following services is NOT covered under a hospitalization expense
policy? - CORRECT ANSWER ✔✔- surgeon's fees
Statements made on an insurance application that are believed to be true to the best
of the applicant's knowledge are called - CORRECT ANSWER ✔✔-
representations
M completes an application for life insurance but does not pay the initial premium.
All of these actions must occur before M's policy goes into effect EXCEPT -
CORRECT ANSWER ✔✔- free-look period has expired
Rick recently died and left behind an individual IRA account in his name. His
widow was forwarded the balance of the IRA. The widow qualifies for the -
CORRECT ANSWER ✔✔- marital deduction
J is 35-years old and looking to purchase a whole life insurance policy. Which of
the following types of policies will provide the most rapid growth of cash value? -
CORRECT ANSWER ✔✔- 20-pay Life
The most important factor to consider when determining whether to convert term
insurance at the insured's attained age or the insured's original age is - CORRECT
ANSWER ✔✔- cost
3|Page
