Final Exam - North Carolina Life and Health Questions With 100% Correct Answers

Final Exam - North Carolina Life and Health Questions With 100% Correct Answers Which of the following is the MOST important factor when deciding how much Disability Income coverage an applicant should purchase? - answer 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 - answerfree-look period has expired Additional coverage can be added to a Whole Life policy by adding a(n) - answerdecreasing term rider All of the following actions are considered rebating EXCEPT - answersharing commissions with other licensed and appointed agents One of the stated purposes of the Life and Health Insurance Guaranty Association is to - answerassist in the prevention of insurer insolvencies Which of the following statements is CORRECT about the period in which a Term Policy can be converted? - answerIt varies according to the contracts Insurance agents MUST obtain a license from North Carolina's - answerCommissioner of Insurance An accident policy will most likely pay a benefit for a(n) - answeroff-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? - answerDisability 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 - answerguaranteed 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? - answer45 days 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? - answerDisability Income Which of the following services is NOT covered under a hospitalization expense policy? - answersurgeon's fees Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called - answerrepresentations 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 - answerfree-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 - answermarital 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? - answer20-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 - answercost The Consideration clause of an insurance contract includes - answerthe schedule and amount of premium payments T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide? - answerIncome that cannot be outlived by the owner If an individual has an Accidental Death and Dismemberment policy and dies, an autopsy can be performed in all these situations EXCEPT - answerWhen the state prohibits this by law The type of annuity that can be purchased with one monetary deposit is called a(n) - answerImmediate annuity Which of the following statements is CORRECT about accelerated death benefits? - answerMust have a terminal illness to qualify Which rider provides coverage for a child under a parent's life insurance policy? - answerChild term rider Which of the following BEST describes how pre-admission certifications are used? - answerUsed to prevent nonessential me