NC Health Insurance Exam Pearson Vue Correct
Answers _2025 Well Updated
Pure Risk (Correct Answer) - ✅✅chance of loss or no loss but not gain insurable
Speculative Risk (Correct Answer) - ✅✅there is possibility of loss but of gain no insurablility
exposure unit (Correct Answer) - ✅✅subject to loss
peril (Correct Answer) - ✅✅cause of loss
life insurance (Correct Answer) - ✅✅death
Health insurance (Correct Answer) - ✅✅accident and sickness
hazard (Correct Answer) - ✅✅increases the likelihood or severity of loss
Three types of hazard (Correct Answer) - ✅✅physical, moral, morale
physical hazard (Correct Answer) - ✅✅arise from the inherent characteristic of the exposure
unit
Moral Hazard (Correct Answer) - ✅✅lifestyle of the insured person
Morale hazard (Correct Answer) - ✅✅arise more from an outlook on life
,risk avoidance (Correct Answer) - ✅✅eliminating all risk altogether
risk retention (Correct Answer) - ✅✅manage risk Deduction
self-insurance (Correct Answer) - ✅✅instead of buying health insurance and saving $ in the
bank
Pure risk that are not insurable (Correct Answer) - ✅✅Flood, War, Catastrophic losses
Intentional losses (Correct Answer) - ✅✅not insurable
Adverse selection (Correct Answer) - ✅✅bad for insurance
insurance actuary (Correct Answer) - ✅✅a specially trained mathematician who calculates
premiums
underwriter (Correct Answer) - ✅✅checks out the medical history of the proposed insured and
other factors to eliminate adverse selection against the insurance company, issue policy premium
restrictions
Days for applicant to requests an explanantion (Correct Answer) - ✅✅90 days
Days insurance company must furnish an explanation (Correct Answer) - ✅✅21 days
A dispute must begin within in (Correct Answer) - ✅✅30 days
, Law of Large numbers (Correct Answer) - ✅✅the larger the number the easier it is to predict
losses
how much $ must a insurance company have in reserve at all times (Correct Answer) - ✅✅4
million
Reinsurance agreements (Correct Answer) - ✅✅enable an insurance company the ceding
company to transfer risk to the reinsurer (seller)
Capital Stock companies are owned by (Correct Answer) - ✅✅stock holders and most common
Main purpose of the stock company (Correct Answer) - ✅✅make a profit for its investors
Mutual companies are owned by (Correct Answer) - ✅✅policy holders
Assessment insurers (Correct Answer) - ✅✅charge additional premiums at the end of the
specified time period
Fraternal benefit societies are similar to (Correct Answer) - ✅✅mutual companies
who is only eligible to buy insurance policies from a Fraternal? (Correct Answer) - ✅✅its
members
Fraternal agents can only sell which policies (Correct Answer) - ✅✅life, health and annuity
policies
Answers _2025 Well Updated
Pure Risk (Correct Answer) - ✅✅chance of loss or no loss but not gain insurable
Speculative Risk (Correct Answer) - ✅✅there is possibility of loss but of gain no insurablility
exposure unit (Correct Answer) - ✅✅subject to loss
peril (Correct Answer) - ✅✅cause of loss
life insurance (Correct Answer) - ✅✅death
Health insurance (Correct Answer) - ✅✅accident and sickness
hazard (Correct Answer) - ✅✅increases the likelihood or severity of loss
Three types of hazard (Correct Answer) - ✅✅physical, moral, morale
physical hazard (Correct Answer) - ✅✅arise from the inherent characteristic of the exposure
unit
Moral Hazard (Correct Answer) - ✅✅lifestyle of the insured person
Morale hazard (Correct Answer) - ✅✅arise more from an outlook on life
,risk avoidance (Correct Answer) - ✅✅eliminating all risk altogether
risk retention (Correct Answer) - ✅✅manage risk Deduction
self-insurance (Correct Answer) - ✅✅instead of buying health insurance and saving $ in the
bank
Pure risk that are not insurable (Correct Answer) - ✅✅Flood, War, Catastrophic losses
Intentional losses (Correct Answer) - ✅✅not insurable
Adverse selection (Correct Answer) - ✅✅bad for insurance
insurance actuary (Correct Answer) - ✅✅a specially trained mathematician who calculates
premiums
underwriter (Correct Answer) - ✅✅checks out the medical history of the proposed insured and
other factors to eliminate adverse selection against the insurance company, issue policy premium
restrictions
Days for applicant to requests an explanantion (Correct Answer) - ✅✅90 days
Days insurance company must furnish an explanation (Correct Answer) - ✅✅21 days
A dispute must begin within in (Correct Answer) - ✅✅30 days
, Law of Large numbers (Correct Answer) - ✅✅the larger the number the easier it is to predict
losses
how much $ must a insurance company have in reserve at all times (Correct Answer) - ✅✅4
million
Reinsurance agreements (Correct Answer) - ✅✅enable an insurance company the ceding
company to transfer risk to the reinsurer (seller)
Capital Stock companies are owned by (Correct Answer) - ✅✅stock holders and most common
Main purpose of the stock company (Correct Answer) - ✅✅make a profit for its investors
Mutual companies are owned by (Correct Answer) - ✅✅policy holders
Assessment insurers (Correct Answer) - ✅✅charge additional premiums at the end of the
specified time period
Fraternal benefit societies are similar to (Correct Answer) - ✅✅mutual companies
who is only eligible to buy insurance policies from a Fraternal? (Correct Answer) - ✅✅its
members
Fraternal agents can only sell which policies (Correct Answer) - ✅✅life, health and annuity
policies
