NC Insurance Licensing Exam
Questions and Answers Already
Graded A+
P is a producer who notices 5 questions on a life application were not answered. What actions
should P take? - correct answer ✔✔Set up a meeting with the applicant to answer the
remaining questions
Which of the following does Social Security NOT provide benefits for? - correct answer
✔✔Dismemberment
An Accident/Health policyholder has ____ days to return the policy and receive a full refund on
premiums - correct answer ✔✔10
Under a Renewable Term policy, - correct answer ✔✔the renewable premium is calculated on
the basis of the insured's attained age
Which of the following BEST describes a short-term medical expense policy? - correct answer
✔✔Nonrenewable
W is a 39-year old female who just purchased an annuity to provide income for life starting at
age 60. All of these would be acceptable annuity choices EXCEPT a(n) - correct answer
✔✔Immediate annuity
How are Roth IRA distributions normally taxed? - correct answer ✔✔Distributions are received
tax-free
,An insurance applicant was recently denied insurance coverage. The applicant is requesting
access from the insurer to recorded personal information regarding this decision. Under the
Information and Privacy Protection Act, the insurer MUST make the information available within
___ business days - correct answer ✔✔30
What is a warranty? - correct answer ✔✔is a statement guaranteed to be true
S is a life insurance policyowner and enters into a written agreement to receive immediate cash
in exchange for the sale and transfer of her life insurance policy. This agreement is referred to as
a(n) - correct answer ✔✔Viatical Settlement
How is the Life and Health Insurance Guaranty Associated funded? - correct answer ✔✔from
member companies
Quarterly premium payments increase the annual cost of insurance because - correct answer
✔✔interest to the insurer is decreased while the administrative costs are increased
Who does an insurance broker in North Carolina represent? - correct answer ✔✔Insured
When an existing life insurance policy is being reissued with a reduction in cash value, the agent
must sign the - correct answer ✔✔Notice Regarding Replacement of Life Insurance of Annuity
Whole Life insurance policies are contractually guaranteed to provide each of the following,
EXCEPT - correct answer ✔✔partial withdrawal features beyond a surrender charge period
K works for XYZ Clothing Store from September through December each year. K works 45 hours
a week for this period of time. The employer's Group Policy would consider K - correct answer
✔✔not eligible for the insurance because as a seasonal employee K does not meet the
definition of "employee" under NC law
, M is insured under a basic Hospital/Surgical Expense policy. A physician performs surgery on M.
What determines the claim M is eligible for? - correct answer ✔✔Determined by the terms of
the policy
Which health policy clause specifies the amount of benefits to be paid? - correct answer
✔✔Insuring
In order to establish a Health Reimbursement Arrangement (HRA), it MUST - correct answer
✔✔be established by the employer
Defamation occurs when an agent makes a false statement intended to - correct answer
✔✔malign another insurer
Which of these circumstances REQUIRE an insurer to clearly specify questions designed to
obtain information solely for marketing research? - correct answer ✔✔Any insurance
transaction
If its employees share in the cost of insurance, what type of group life insurance plan would a
corporation have? - correct answer ✔✔Contributory
The investment gains from a Universal Life Policy usually go toward: - correct answer ✔✔the
cash value
The Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for: -
correct answer ✔✔health information
In North Carolina, an agent obtains his/her license from the - correct answer ✔✔Commissioner
of Insurance
Questions and Answers Already
Graded A+
P is a producer who notices 5 questions on a life application were not answered. What actions
should P take? - correct answer ✔✔Set up a meeting with the applicant to answer the
remaining questions
Which of the following does Social Security NOT provide benefits for? - correct answer
✔✔Dismemberment
An Accident/Health policyholder has ____ days to return the policy and receive a full refund on
premiums - correct answer ✔✔10
Under a Renewable Term policy, - correct answer ✔✔the renewable premium is calculated on
the basis of the insured's attained age
Which of the following BEST describes a short-term medical expense policy? - correct answer
✔✔Nonrenewable
W is a 39-year old female who just purchased an annuity to provide income for life starting at
age 60. All of these would be acceptable annuity choices EXCEPT a(n) - correct answer
✔✔Immediate annuity
How are Roth IRA distributions normally taxed? - correct answer ✔✔Distributions are received
tax-free
,An insurance applicant was recently denied insurance coverage. The applicant is requesting
access from the insurer to recorded personal information regarding this decision. Under the
Information and Privacy Protection Act, the insurer MUST make the information available within
___ business days - correct answer ✔✔30
What is a warranty? - correct answer ✔✔is a statement guaranteed to be true
S is a life insurance policyowner and enters into a written agreement to receive immediate cash
in exchange for the sale and transfer of her life insurance policy. This agreement is referred to as
a(n) - correct answer ✔✔Viatical Settlement
How is the Life and Health Insurance Guaranty Associated funded? - correct answer ✔✔from
member companies
Quarterly premium payments increase the annual cost of insurance because - correct answer
✔✔interest to the insurer is decreased while the administrative costs are increased
Who does an insurance broker in North Carolina represent? - correct answer ✔✔Insured
When an existing life insurance policy is being reissued with a reduction in cash value, the agent
must sign the - correct answer ✔✔Notice Regarding Replacement of Life Insurance of Annuity
Whole Life insurance policies are contractually guaranteed to provide each of the following,
EXCEPT - correct answer ✔✔partial withdrawal features beyond a surrender charge period
K works for XYZ Clothing Store from September through December each year. K works 45 hours
a week for this period of time. The employer's Group Policy would consider K - correct answer
✔✔not eligible for the insurance because as a seasonal employee K does not meet the
definition of "employee" under NC law
, M is insured under a basic Hospital/Surgical Expense policy. A physician performs surgery on M.
What determines the claim M is eligible for? - correct answer ✔✔Determined by the terms of
the policy
Which health policy clause specifies the amount of benefits to be paid? - correct answer
✔✔Insuring
In order to establish a Health Reimbursement Arrangement (HRA), it MUST - correct answer
✔✔be established by the employer
Defamation occurs when an agent makes a false statement intended to - correct answer
✔✔malign another insurer
Which of these circumstances REQUIRE an insurer to clearly specify questions designed to
obtain information solely for marketing research? - correct answer ✔✔Any insurance
transaction
If its employees share in the cost of insurance, what type of group life insurance plan would a
corporation have? - correct answer ✔✔Contributory
The investment gains from a Universal Life Policy usually go toward: - correct answer ✔✔the
cash value
The Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for: -
correct answer ✔✔health information
In North Carolina, an agent obtains his/her license from the - correct answer ✔✔Commissioner
of Insurance
