North Carolina Health Insurance and Life Exam 2025

North Carolina Health Insurance and Life Exam 2025 A term Life insurance policy matures A) Upon endowment of the contract B) upon death of the insured C) when the cash value equals the death benefit D) upon the insureds death during the term of the policy - Correct Answer-D) upon the insureds death during the term of the policy Group Life insurance policies are generally written as A) A term rider B) Annually renewable term C) Increasing term D) group whole life - Correct Answer-B) Annually renewable term J chooses a monthly premium payment mode on his life insurance policy. Which of these statements is correct A) the gross premium is higher on a monthly payment mode as compared to being paid annually B) the gross premium is lower on a monthly payment mode as compared to being paid annually - Correct Answer-A) the gross premium is higher on a monthly payment mode as compared to being paid annually What statement is true regarding a Variable Whole Life Policy? A) A minimum guaranteed Death benefit is provided B) It has guaranteed dividends C) Its premiums and benefits are variable - Correct Answer-A) A minimum guaranteed Death benefit is provided 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 A) Policy is delivered B) Free Look period has expired C) Initial premium is collected - Correct Answer-B) Free Look period has expired In order to establish a Health Reimbursement Arrangement, it must Insurance Insurance A) be offered in conjunction with other employer provided health benefits B) limit the amount of money an employee can contribute to the account C) be established by the employer - Correct Answer-C) be established by the employer A ______ rider must be used to include coverage for children under their parents life insurance policy A) Payor B) Term C) Conversion D) Parent - Correct Answer-B) Term What type of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability A) Endowment Policy B) Limited Pay Whole life C) Convertible Term - Correct Answer-C) Convertible Term What is the consideration given by an insurer in the Consideration Clause of a life policy A) Promise to never cancel coverage B) Promise to pay a death benefit to a named beneficiary C) Promise to not raise premiums - Correct Answer-B) Promise to pay a death benefit to a named beneficiary Which of the following policy provisions prohibits an insurance company from incorporating external documents into an insurance policy A) Waiver B) Exceptions and Reductions C) Incontestable D) Entire Contract - Correct Answer-D) Entire Contract An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective A) When the policy is issued B) The date of policy delivery C) When the conditions of the receipt are met - Correct Answer-C) When the conditions of the receipt are met Under what condition may a lender require the purchase of insurance as a condition of making a loan A) Only if the rates are set by the lender Insurance Insurance B) Only is the lender is the insurer C) Only if the borrower is not restricted in his/her choice of insurers - Correct Answer-C) Only if the borrower is not restricted in his/her choice of insurers Group health plans typically contain a coordination of benefits. This provisions purpose is to A) Avoid the duplication of benefits B) Assure the policy owner that no changes will be made in the contract C) Give the policy owner additional time to pay the overdue premiums - Correct Answer A) Avoid the duplication of benefits A disability elimination period is best described as A) Time deductible B) Dollar deductible C) probation period D) Eligibility period - Correct Answer-A) Time deductible Which health policy clause specfies the amount of benefits to be paid A) Insuring B) Consideration C) Free-Look D) Payment Mode - Correct Answer-A) Insuring If a life insurance company becomes insolvent, the fund the guarantees policyowners payment of death benefits is known as the A) Life Insurance surety association B) Insurance Solvency Association C) Life and Health insurance Guarantee association - Correct Answer-C) Life and Health insurance Guarantee association Essential benefits without annual and lifetime limits are required on any health policy purchase A) Through commercial providers B) Through mutual insurers C) Through medicare D) Through the federal marketplace - Correct Answer-D) Through the federal marketplace If its employees share the cost of insurance, what type of group life insurance plan would a corporation have Insurance Insurance A) Noneligible B) Noncontributory C) Elegible) D) Contributory - Correct Answer-D) Contributory ____________ could have claim to viatical settlement proceeds A) Creditors B) a beneficiary C) a spouse D) children - Correct Answer-A) Creditors Y purchased $100,000 permanent protection on himself and $50,000 worth of 10 year term coverage for his wife on the same policy. Which of these policies did Y purchase A) Endowment with extended term B) Endowment with a payor benefit C) Whole life with an other insured rider D) Family income policy - Correct Answer-C) Whole life with an other insured rider A policy owner is able to chose the frequency of payments throughw hat policy feature A) Consideration B) Payor benefits C) Premium Mode D) Assignment Provision - Correct Answer-C) Premium Mode Which of the following is not included in the policy face A) Free look provision B) Name of the insured C) Name of the insurer D) Exclusions - Correct Answer-D) Exclusions What type of insurance are credit policies issued as A) Whole B) Variable C) Term D) Universal - Correct Answer-C) Term The provision in a group health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policies effective date is referred to as the A) Grace period B) Waiting period Insurance Insurance C) Postponement Period D) Elimination period - Correct Answer-B) Waiting period The Commissioner may issue and annually renewable __________ ____________ valid for representing and insurer in a foreign country or on a US military base A) nonresident license B) Foreign License C) Alien License D) Restricted License - Correct Answer-D) Restricted License Which of the following consists of an offer, acceptance, and consideration A) Warranty B) Estoppel C) Contract D) Representation - Correct Answer-C) Contract When a life insurance policy exceeds certain IRS table values, the result would create which of the following A) 1035 exchange B) an investment C) Modified Endowment Contract D) Endowment - Correct Answer-C) Modified Endowment Contract A company that owns a life insurance policy on one of its key employees ay do all of the following EXCEPT A) Borrow against the cash value B) Change Beneficiary C) Cancel policy D) Change the policies interest rate - Correct Answer-D) Change the policies interest rate A nonforfeiture clause gives the policy owner A) Lifetime income B) guaranteed values even if the policy has lapsed C) Unemployment benefits D) Cost of living allowance - Correct Answer-B) guaranteed values even if the policy has lapsed The notice of claims provision requires a policy owner to A) provide proof of loss to an insurer within a specified time Insurance Insurance B) notify an insurer of a claim within a specified time C) notify their physician of a claim within a specified time - Correct Answer-B) notify an insurer of a claim within a specified time The type of annuity that must be purchased with one monetary deposit is called A) Single deposit annuity B) Variable annuity C) Fixed annuity D) Immediate annuity - Correct Answer-D) Immediate annuity With accidental death and dismemberment policies, what is the purpose of the Grace period A) Gives the policy owner additional time to pay overdue premiums B) Gives the policy owner additional time to file a lawsuit C) Gives the policy owner additional time to file a claim D) Gives the policy owner additional time to provide proof of loss - Correct Answer-A) Gives the policy owner additional time to pay overdue premiums What is the purpose of the time of payment of claims provision A) Requires the insured to wait 60 days after submitting proof of loss before filing a law suit B) Prevents delayed claim payments made by the insurer C) Requires a probation period for each claim filed by the insured D) Protects the insurer from frivolous law suits - Correct Answer-B) Prevents delayed claim payments made by the insurer An agent must complete ______ biennial continuing education credit hours to maintain their license A) 6 B) 12 C) 24 D) 36 - Correct Answer-C) 24 What is the basic function of an annuity A) The systematic liquidation of accumulated funds B) A guarantee of a specific sum of money to a designated beneficiary upon the death of an insured C) The protection against loss of income due to partial or total disability D) The accumulation of funds to pay for life insurance premiums during retirement years - Correct Answer-A) The systematic liquidation of accumulated funds Insurance Insurance ABC insurance company fails to pay death proceeds after satisfactory proof of loss was submitted. ABC must then begin paying interest on the death proceeds after _____ days of receiving proof of loss A) 10 B) 30 C) 40 D) 60 - Correct Answer-B) 30 The insuring Clause A) Specifies the additional time given to pay past due premiums B) States the scopes and limits of the coverage C) States the amount of premium collected - Correct Answer-B) States the scopes and limits of the coverage What is being delivered during a policy delivery A) a binding receipt to the proposed insurer B) Insurance contract to the proposed insurer C) Application and initial premium to the insurer - Correct Answer-B) Insurance contract to the proposed insurer Which of the following types of insurance is exempt from the Rules Governing Life Insurance and Annuity Replacements A) Universal Life B) Adjustable Life C) Ten Year decreasing Term Life D) Credit Life - Correct Answer-D) Credit Life The Commissioner of Insurance is NOT permitted to A) Set insurance rates within the state B) Examine an insurers financial records C) Approve forms used by insurers - Correct Answer-A) Set insurance rates within the state The advantage fo reinstating an original life policy is A) premiums are based on the current age of the insured B) premiums are based on a younger age C) a new incontestable period will begin - Correct Answer-B) premiums are based on a younger age