NORTH CAROLINA LIFE AND HEALTH STATE EXAM
SIMULATOR QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+
What is the purpose of the Time of Payment of Claims provision? - CORRECT
ANSWER ✔✔- - Prevents delayed claim payments made by the insurer
Insurance agents MUST obtain a license from North Carolina's - CORRECT
ANSWER ✔✔- - Commissioner of Insurance
A life insurance policy can be reinstated upon meeting company requirements
within a maximum of - CORRECT ANSWER ✔✔- - 5 years
When funds are shifted straight from one IRA to another IRA, what percentage of
the tax is withheld? - CORRECT ANSWER ✔✔- - None
Which policy requires an agent to register with the National Association of
Securities Dealers (NASD) before selling? - CORRECT ANSWER ✔✔- - Variable
Life
Which of these characteristics is consistent with a Straight Life policy? -
CORRECT ANSWER ✔✔- - Premiums are payable for as long as there is
insurance coverage in force
If a company accepts a renewal premium payment that would extend coverage
beyond the policy's MAXIMUM age limit, the company - CORRECT ANSWER
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,✔✔- - Must continue the coverage to the end of the period of time for which the
premium was accepted
Making false statements about the financial condition of another insurance
company is called - CORRECT ANSWER ✔✔- - Defamation
The Accidental Death and Dismemberment (AD&D) provision in a life insurance
policy would pay additional benefits if the insured: - CORRECT ANSWER ✔✔- -
Is blinded in an accident
Insurers organized under the laws of North Carolina are called - CORRECT
ANSWER ✔✔- - Domestic companies
A young, married teacher has two children and owns a Whole Life policy. If the
teacher wants an increasing Death Benefit to protect against inflation, the teacher
should select which of the following Dividend Options? - CORRECT ANSWER
✔✔- - Paid-Up Additional Insurance
Before a Health Policy is issued or delivered, the form, classification or risks, and
premium rates MUST be filed with the - CORRECT ANSWER ✔✔- -
Commissioner of Insurance
A Business Overhead Expense policy: - CORRECT ANSWER ✔✔- - Covers
business expenses such as rent and utilities
Which of the following factors affects the amount of monthly disability benefits
payable under Social Security? - CORRECT ANSWER ✔✔- - The amount of the
benefits available from other sources
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, Which of the following statements is true about most Blue Cross/Blue Shield
organizations? - CORRECT ANSWER ✔✔- - They are nonprofit organizations
Basic Hospital and Surgical policy benefits are: - CORRECT ANSWER ✔✔- -
Lower than the actual expenses incurred
All of these Settlement options involve the systematic liquidation of the death
proceeds in the event of the insured's death, EXCEPT: - CORRECT ANSWER
✔✔- - Interest Only
What type of rider would be added to an Accident and Health policy if the
policyowner wants to ensure the policy will continue if he/she ever becomes totally
disabled? - CORRECT ANSWER ✔✔- - Waiver of Premium rider
The Insurance Information and Privacy Protection Act is designed to limit or direct
the information collection activities of all of the following EXCEPT - CORRECT
ANSWER ✔✔- - Insurance regulators
Which of these factors does NOT influence an applicant's need for life insurance? -
CORRECT ANSWER ✔✔- - Self-maintenance expenses
A student pilot can pay regular premium costs for her life insurance policy with the
addition of which of the following? - CORRECT ANSWER ✔✔- - Aviation
exclusion
Which of the following combination plans is designed to protect an insured from
an unpaid mortgage balance upon premature death? - CORRECT ANSWER ✔✔- -
Joint Life
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SIMULATOR QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+
What is the purpose of the Time of Payment of Claims provision? - CORRECT
ANSWER ✔✔- - Prevents delayed claim payments made by the insurer
Insurance agents MUST obtain a license from North Carolina's - CORRECT
ANSWER ✔✔- - Commissioner of Insurance
A life insurance policy can be reinstated upon meeting company requirements
within a maximum of - CORRECT ANSWER ✔✔- - 5 years
When funds are shifted straight from one IRA to another IRA, what percentage of
the tax is withheld? - CORRECT ANSWER ✔✔- - None
Which policy requires an agent to register with the National Association of
Securities Dealers (NASD) before selling? - CORRECT ANSWER ✔✔- - Variable
Life
Which of these characteristics is consistent with a Straight Life policy? -
CORRECT ANSWER ✔✔- - Premiums are payable for as long as there is
insurance coverage in force
If a company accepts a renewal premium payment that would extend coverage
beyond the policy's MAXIMUM age limit, the company - CORRECT ANSWER
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,✔✔- - Must continue the coverage to the end of the period of time for which the
premium was accepted
Making false statements about the financial condition of another insurance
company is called - CORRECT ANSWER ✔✔- - Defamation
The Accidental Death and Dismemberment (AD&D) provision in a life insurance
policy would pay additional benefits if the insured: - CORRECT ANSWER ✔✔- -
Is blinded in an accident
Insurers organized under the laws of North Carolina are called - CORRECT
ANSWER ✔✔- - Domestic companies
A young, married teacher has two children and owns a Whole Life policy. If the
teacher wants an increasing Death Benefit to protect against inflation, the teacher
should select which of the following Dividend Options? - CORRECT ANSWER
✔✔- - Paid-Up Additional Insurance
Before a Health Policy is issued or delivered, the form, classification or risks, and
premium rates MUST be filed with the - CORRECT ANSWER ✔✔- -
Commissioner of Insurance
A Business Overhead Expense policy: - CORRECT ANSWER ✔✔- - Covers
business expenses such as rent and utilities
Which of the following factors affects the amount of monthly disability benefits
payable under Social Security? - CORRECT ANSWER ✔✔- - The amount of the
benefits available from other sources
2|Page
, Which of the following statements is true about most Blue Cross/Blue Shield
organizations? - CORRECT ANSWER ✔✔- - They are nonprofit organizations
Basic Hospital and Surgical policy benefits are: - CORRECT ANSWER ✔✔- -
Lower than the actual expenses incurred
All of these Settlement options involve the systematic liquidation of the death
proceeds in the event of the insured's death, EXCEPT: - CORRECT ANSWER
✔✔- - Interest Only
What type of rider would be added to an Accident and Health policy if the
policyowner wants to ensure the policy will continue if he/she ever becomes totally
disabled? - CORRECT ANSWER ✔✔- - Waiver of Premium rider
The Insurance Information and Privacy Protection Act is designed to limit or direct
the information collection activities of all of the following EXCEPT - CORRECT
ANSWER ✔✔- - Insurance regulators
Which of these factors does NOT influence an applicant's need for life insurance? -
CORRECT ANSWER ✔✔- - Self-maintenance expenses
A student pilot can pay regular premium costs for her life insurance policy with the
addition of which of the following? - CORRECT ANSWER ✔✔- - Aviation
exclusion
Which of the following combination plans is designed to protect an insured from
an unpaid mortgage balance upon premature death? - CORRECT ANSWER ✔✔- -
Joint Life
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