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NORTH CAROLINA HEALTH INSURANCE EXAM LATEST
UPDATE THIS YEAR ALL 400 QUESTIONS AND CORRECT
DETAILED SOLUTIONS JUST RELEASED
Question: Which of the following statements is FALSE regarding Credit Life Insurance?
A
The creditor must apply the insurance proceeds to the discharge of the loan
B
The insurance will terminate if the debt is prepaid or refinanced
C
Usually the individual debtor pays the premium monthly
D
The amount of coverage is dependent upon the duration of the loan - CORRECT
ANSWER✔✔The amount of coverage is dependent upon the duration of the loan
Question: For which of the following reasons may an insured return the policy for a full refund
within the Free Look Period?
A
Increase in premium
B
Death of the agent
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C
Decline in financial rating of the insurance company
D
Any reason - CORRECT ANSWER✔✔Any reason
Question: In which of the following plans does the company assume all of the investment risk?
A
Defined contribution
B
Defined benefit
C
Simplified Employee Pension (SEP)
D
Profit-sharing - CORRECT ANSWER✔✔Defined benefit
Question: Upon annuitizing an annuity, all of the following factors help in determining the
amount of the income benefit payment, except:
A
Settlement option
B
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Gender
C
State of residence
D
Age - CORRECT ANSWER✔✔State of residence
Question: Which of the following is a type of rating that does not involve an extra premium
being assessed?
A
The lien plan
B
The flat rate
C
Rated up age
D
Sub-standard - CORRECT ANSWER✔✔The lien plan
Question: All of the following are situations in which the insurer is obligated to pay out a death
benefit after the insured has died, except:
A
An insured commits suicide 7 years after the policy was issued
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B
The insured was an experienced pilot who died in a plane crash but had a policy issued with an
aviation rider for an additional premium
C
The premiums have not been paid and have been overdue for 3 years
D
The insurer discovers the gender of the insured was misstated - CORRECT ANSWER✔✔The
premiums have not been paid and have been overdue for 3 years
Question: Premium is considered the policyowner's:
A
Fee
B
Credit
C
Tender
D
Consideration - CORRECT ANSWER✔✔Consideration
Question: For an individually purchased life insurance policy, the premiums are considered a
__________.
A
NORTH CAROLINA HEALTH INSURANCE EXAM LATEST
UPDATE THIS YEAR ALL 400 QUESTIONS AND CORRECT
DETAILED SOLUTIONS JUST RELEASED
Question: Which of the following statements is FALSE regarding Credit Life Insurance?
A
The creditor must apply the insurance proceeds to the discharge of the loan
B
The insurance will terminate if the debt is prepaid or refinanced
C
Usually the individual debtor pays the premium monthly
D
The amount of coverage is dependent upon the duration of the loan - CORRECT
ANSWER✔✔The amount of coverage is dependent upon the duration of the loan
Question: For which of the following reasons may an insured return the policy for a full refund
within the Free Look Period?
A
Increase in premium
B
Death of the agent
, Page 2 of 109
C
Decline in financial rating of the insurance company
D
Any reason - CORRECT ANSWER✔✔Any reason
Question: In which of the following plans does the company assume all of the investment risk?
A
Defined contribution
B
Defined benefit
C
Simplified Employee Pension (SEP)
D
Profit-sharing - CORRECT ANSWER✔✔Defined benefit
Question: Upon annuitizing an annuity, all of the following factors help in determining the
amount of the income benefit payment, except:
A
Settlement option
B
, Page 3 of 109
Gender
C
State of residence
D
Age - CORRECT ANSWER✔✔State of residence
Question: Which of the following is a type of rating that does not involve an extra premium
being assessed?
A
The lien plan
B
The flat rate
C
Rated up age
D
Sub-standard - CORRECT ANSWER✔✔The lien plan
Question: All of the following are situations in which the insurer is obligated to pay out a death
benefit after the insured has died, except:
A
An insured commits suicide 7 years after the policy was issued
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B
The insured was an experienced pilot who died in a plane crash but had a policy issued with an
aviation rider for an additional premium
C
The premiums have not been paid and have been overdue for 3 years
D
The insurer discovers the gender of the insured was misstated - CORRECT ANSWER✔✔The
premiums have not been paid and have been overdue for 3 years
Question: Premium is considered the policyowner's:
A
Fee
B
Credit
C
Tender
D
Consideration - CORRECT ANSWER✔✔Consideration
Question: For an individually purchased life insurance policy, the premiums are considered a
__________.
A
