North Carolina Life and Health State Exam Questions with Verified Solutions

North Carolina Life and Health State Exam Questions with Verified Solutions A 42-year-old executive wants to purchase life insurance that will allow for increases or decreases to coverage as his/her needs change. Which of the following policies will best meet this need? - Answer - Universal Life A Business Overhead Expense policy: - Answer - Covers business expenses such as rent and utilities A Health Reimbursement Arrangement MUST be established: - Answer - By the employer A level premium indicates: - Answer - The premium is fixed for the entire duration of the contract A life insurance policy can be reinstated upon meeting company requirements within a maximum of - Answer - 5 years A long-term care rider in a life insurance policy pays a daily benefit in the event of which of the following? - Answer - Inability of the insured to perform more than 2 Activities of Daily Living (ADL's) A person is required to be AT LEAST how old before he or she is licensed as an agent in North Carolina? - Answer - 18 A policyowner is allowed to pay premiums more than once a year under which provision? - Answer - Mode of Premium A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following? - Answer - Aviation exclusion A written agreement to provide a Life Insurance Policy holder immediate cash in exchange for the sale and transfer of a Life Insurance Policy is a - Answer - Viatical Settlement 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? - Answer - Paid-Up Additional Insurance According to North Carolina's rules on disclosure, a life insurance applicant is expected to be provided with - Answer - a Buyer's Guide and Policy Summary According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the following options? - Answer - Monthly - The time of payment for claims is usually specified in different policies as 60 days, 45 days, or 30 days. However, if the claim involves disability income benefits, the benefits must be paid not less frequently than monthly. Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? - Answer - Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company