Final Exam - North Carolina Life and Health
questions with correct answers
Which |of |the |following |is |the |MOST |important |factor |when |deciding |how |much |Disability |Income |
coverage |an |applicant |should |purchase? |- |VERIFIED |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 |- |VERIFIED |ANSWER✔✔-free-look |
period |has |expired
Additional |coverage |can |be |added |to |a |Whole |Life |policy |by |adding |a(n) |- |VERIFIED |ANSWER✔✔-
decreasing |term |rider
All |of |the |following |actions |are |considered |rebating |EXCEPT |- |VERIFIED |ANSWER✔✔-sharing |
commissions |with |other |licensed |and |appointed |agents
One |of |the |stated |purposes |of |the |Life |and |Health |Insurance |Guaranty |Association |is |to |- |VERIFIED |
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? |- |VERIFIED |ANSWER✔✔-It |varies |according |to |the |contracts
Insurance |agents |MUST |obtain |a |license |from |North |Carolina's |- |VERIFIED |ANSWER✔✔-Commissioner |
of |Insurance
An |accident |policy |will |most |likely |pay |a |benefit |for |a(n) |- |VERIFIED |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? |- |VERIFIED |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 |- |VERIFIED |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? |- |VERIFIED |ANSWER✔✔-45 |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? |- |VERIFIED |ANSWER✔✔-
Disability |Income
Which |of |the |following |services |is |NOT |covered |under |a |hospitalization |expense |policy? |- |VERIFIED |
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 |- |VERIFIED |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 |- |VERIFIED |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 |- |VERIFIED |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? |- |VERIFIED |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 |- |VERIFIED |ANSWER✔✔-cost
The |Consideration |clause |of |an |insurance |contract |includes |- |VERIFIED |ANSWER✔✔-the |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? |- |VERIFIED |ANSWER✔✔-Income |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 |- |VERIFIED |ANSWER✔✔-When |the |state |prohibits |this |by |
law
The |type |of |annuity |that |can |be |purchased |with |one |monetary |deposit |is |called |a(n) |- |VERIFIED |
ANSWER✔✔-Immediate |annuity
Which |of |the |following |statements |is |CORRECT |about |accelerated |death |benefits? |- |VERIFIED |
ANSWER✔✔-Must |have |a |terminal |illness |to |qualify
Which |rider |provides |coverage |for |a |child |under |a |parent's |life |insurance |policy? |- |VERIFIED |
ANSWER✔✔-Child |term |rider
Which |of |the |following |BEST |describes |how |pre-admission |certifications |are |used? |- |VERIFIED |
ANSWER✔✔-Used |to |prevent |nonessential |medical |costs
T |is |covered |by |an |Accidental |Death |and |Dismemberment |(AD&D) |policy |that |has |an |irrevocable |
beneficiary. |What |action |will |the |insurance |company |take |if |T |requests |a |change |of |beneficiary? |- |
VERIFIED |ANSWER✔✔-Request |of |the |change |will |be |refused
If |the |Commissioner |of |insurance |finds |that |a |licensed |person |has |used |fraudulent, |coercive, |or |
dishonest |practices |or |has |proved |to |be |incompetent, |untrustworthy, |or |financially |irresponsible, |the |
law |allows |the |Commissioner |to |- |VERIFIED |ANSWER✔✔-suspend, |revoke, |or |refuse |to |renew |the |
agent's |license
T |took |out |a |$50,000 |life |insurance |policy |with |an |Accidental |Death |and |Dismemberment |rider. |Five |
years |later, |T |commits |suicide. |How |much |will |the |insurer |pay? |- |VERIFIED |ANSWER✔✔-$50,000
What |kind |of |insurance |policy |supplies |an |income |stream |over |a |set |period |of |time |that |starts |when |
the |insured |dies? |- |VERIFIED |ANSWER✔✔-Family |Maintenance |Policy
questions with correct answers
Which |of |the |following |is |the |MOST |important |factor |when |deciding |how |much |Disability |Income |
coverage |an |applicant |should |purchase? |- |VERIFIED |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 |- |VERIFIED |ANSWER✔✔-free-look |
period |has |expired
Additional |coverage |can |be |added |to |a |Whole |Life |policy |by |adding |a(n) |- |VERIFIED |ANSWER✔✔-
decreasing |term |rider
All |of |the |following |actions |are |considered |rebating |EXCEPT |- |VERIFIED |ANSWER✔✔-sharing |
commissions |with |other |licensed |and |appointed |agents
One |of |the |stated |purposes |of |the |Life |and |Health |Insurance |Guaranty |Association |is |to |- |VERIFIED |
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? |- |VERIFIED |ANSWER✔✔-It |varies |according |to |the |contracts
Insurance |agents |MUST |obtain |a |license |from |North |Carolina's |- |VERIFIED |ANSWER✔✔-Commissioner |
of |Insurance
An |accident |policy |will |most |likely |pay |a |benefit |for |a(n) |- |VERIFIED |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? |- |VERIFIED |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 |- |VERIFIED |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? |- |VERIFIED |ANSWER✔✔-45 |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? |- |VERIFIED |ANSWER✔✔-
Disability |Income
Which |of |the |following |services |is |NOT |covered |under |a |hospitalization |expense |policy? |- |VERIFIED |
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 |- |VERIFIED |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 |- |VERIFIED |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 |- |VERIFIED |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? |- |VERIFIED |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 |- |VERIFIED |ANSWER✔✔-cost
The |Consideration |clause |of |an |insurance |contract |includes |- |VERIFIED |ANSWER✔✔-the |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? |- |VERIFIED |ANSWER✔✔-Income |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 |- |VERIFIED |ANSWER✔✔-When |the |state |prohibits |this |by |
law
The |type |of |annuity |that |can |be |purchased |with |one |monetary |deposit |is |called |a(n) |- |VERIFIED |
ANSWER✔✔-Immediate |annuity
Which |of |the |following |statements |is |CORRECT |about |accelerated |death |benefits? |- |VERIFIED |
ANSWER✔✔-Must |have |a |terminal |illness |to |qualify
Which |rider |provides |coverage |for |a |child |under |a |parent's |life |insurance |policy? |- |VERIFIED |
ANSWER✔✔-Child |term |rider
Which |of |the |following |BEST |describes |how |pre-admission |certifications |are |used? |- |VERIFIED |
ANSWER✔✔-Used |to |prevent |nonessential |medical |costs
T |is |covered |by |an |Accidental |Death |and |Dismemberment |(AD&D) |policy |that |has |an |irrevocable |
beneficiary. |What |action |will |the |insurance |company |take |if |T |requests |a |change |of |beneficiary? |- |
VERIFIED |ANSWER✔✔-Request |of |the |change |will |be |refused
If |the |Commissioner |of |insurance |finds |that |a |licensed |person |has |used |fraudulent, |coercive, |or |
dishonest |practices |or |has |proved |to |be |incompetent, |untrustworthy, |or |financially |irresponsible, |the |
law |allows |the |Commissioner |to |- |VERIFIED |ANSWER✔✔-suspend, |revoke, |or |refuse |to |renew |the |
agent's |license
T |took |out |a |$50,000 |life |insurance |policy |with |an |Accidental |Death |and |Dismemberment |rider. |Five |
years |later, |T |commits |suicide. |How |much |will |the |insurer |pay? |- |VERIFIED |ANSWER✔✔-$50,000
What |kind |of |insurance |policy |supplies |an |income |stream |over |a |set |period |of |time |that |starts |when |
the |insured |dies? |- |VERIFIED |ANSWER✔✔-Family |Maintenance |Policy
