LIFE AND HEALTH INSURANCE STUDY
QUESTIONS (NC) EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/
ALREADY GRADED A+
Variable life products require a producer to - CORRECT ANSWER ✔✔- hold a
Life insurance license and Securities license
What type of renewability guarantees premium rates and renewability? -
CORRECT ANSWER ✔✔- Noncancellable
North Carolina insurance law permits which of the following practices? -
CORRECT ANSWER ✔✔- Higher rates of male insureds for Life Insurance based
exclusively on gender
Which of these is NOT a reason for a business to buy key person life insurance?
A) The reduction in sales as a directed result from death of the key employee
B) A void leadership if the key person were to die
C) The loss of company revenues while a replacement is being sought
D) A pension deficiency if the key employee dies - CORRECT ANSWER ✔✔- A
pension deficiency if the key employee dies
A person insured under a health policy is required to give the insurance company a
Notice of Claim within how many days after a covered loss? - CORRECT
ANSWER ✔✔- 20 days
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,How does the commissioner of Insurance attain office? - CORRECT ANSWER
✔✔- Elected by the people of NC to a 4-year term
An agent soliciting insurance policies in NC must be - CORRECT ANSWER ✔✔-
appointed by an authorized insurer in NC
A provision in a life insurance policy that pays the policyowner an amount that
does not surpass the guaranteed cash value is called the: - CORRECT ANSWER
✔✔- Policy Loan provision
A long-term care rider in a life insurance policy pays a daily benefit in the event of
which of the following? - CORRECT ANSWER ✔✔- Inability of the insured to
perform more than 2 Activities of Daily Living (ADL's)
A major medical policy typically: - CORRECT ANSWER ✔✔- provides benefits
for reasonable and necessary medical expense, subject to policy limits
R becomes disable and owns a n individual Disability Income policy. When is R
eligible to receive disability benefits? - CORRECT ANSWER ✔✔- Upon
satisfying the elimination period requirement
Premature IRA distributions are assessed a penalty tax of: - CORRECT ANSWER
✔✔- 10%
An individual who purchases a Life annuity is given protection against: -
CORRECT ANSWER ✔✔- the risk of living longer than expected
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,Which of the following types of Term Life policies most likely contains a
Renewability feature? - CORRECT ANSWER ✔✔- 10 year Convertible Term
Before a life insurance policy is issued, which of these components of the contact
is required? - CORRECT ANSWER ✔✔- Applicant's signature on application
A Hospital/Surgical Expense policy was purchased for a family of four in March of
2013. The policy was issued with a $500 deductible and a limit of four deductibles
per calendar year. Two claims were pain in September 2013, each incurring
medical expense in excess of the deductible amount as well. What would be this
family's out-of-pocket medical expense for 2013? - CORRECT ANSWER ✔✔-
$1000
Which of the following MUST be included with the continuation of coverage of a
group Hospital, Surgical, and Major medical policy?
A) Chiropractic coverage
B) Vision care
C) Wellness program
D) Hospital expense - CORRECT ANSWER ✔✔- Hospital expense
The Notice of Claims provision requires a policyowner to: - CORRECT ANSWER
✔✔- Notify an insurer of a claim within a specified time
What kind of insurance policy supplies an income stream over a set period of time
that starts when the insured dies? - CORRECT ANSWER ✔✔- Family
Maintenance Policy
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, S filed a written Proof of Loss for a Disability Income claim on September 1. The
insurance company did not respond to the claim. Scan take legal action against the
insurer beginning: - CORRECT ANSWER ✔✔- November 1
Which of these is NOT considered to be an element of an insurance contract?
A) the offer
B) acceptance
C) negotiating
D) consideration - CORRECT ANSWER ✔✔- negotiating
T would like to be assured $10,000 is available in 10 years to replace a roof on his
house. What kind of $10,000 policy should T purchase? - CORRECT ANSWER
✔✔- 10-year endowment
Which statement about whole life policy is true? - CORRECT ANSWER ✔✔-
Cash value may be borrowed against
A terminated employee must have been covered for a LEAST____ month(s) under
a Group Health Insurance policy immediately prior to termination in order to be
eligible continuation of coverage. - CORRECT ANSWER ✔✔- 3 months
Death benefits for suicide must be paid if the policy has been in force for at
LAEST - CORRECT ANSWER ✔✔- 2 years
Which mode of payment is NOT used by health insurance policies?
A) Monthly premium
B) Annual premium
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QUESTIONS (NC) EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/
ALREADY GRADED A+
Variable life products require a producer to - CORRECT ANSWER ✔✔- hold a
Life insurance license and Securities license
What type of renewability guarantees premium rates and renewability? -
CORRECT ANSWER ✔✔- Noncancellable
North Carolina insurance law permits which of the following practices? -
CORRECT ANSWER ✔✔- Higher rates of male insureds for Life Insurance based
exclusively on gender
Which of these is NOT a reason for a business to buy key person life insurance?
A) The reduction in sales as a directed result from death of the key employee
B) A void leadership if the key person were to die
C) The loss of company revenues while a replacement is being sought
D) A pension deficiency if the key employee dies - CORRECT ANSWER ✔✔- A
pension deficiency if the key employee dies
A person insured under a health policy is required to give the insurance company a
Notice of Claim within how many days after a covered loss? - CORRECT
ANSWER ✔✔- 20 days
1|Page
,How does the commissioner of Insurance attain office? - CORRECT ANSWER
✔✔- Elected by the people of NC to a 4-year term
An agent soliciting insurance policies in NC must be - CORRECT ANSWER ✔✔-
appointed by an authorized insurer in NC
A provision in a life insurance policy that pays the policyowner an amount that
does not surpass the guaranteed cash value is called the: - CORRECT ANSWER
✔✔- Policy Loan provision
A long-term care rider in a life insurance policy pays a daily benefit in the event of
which of the following? - CORRECT ANSWER ✔✔- Inability of the insured to
perform more than 2 Activities of Daily Living (ADL's)
A major medical policy typically: - CORRECT ANSWER ✔✔- provides benefits
for reasonable and necessary medical expense, subject to policy limits
R becomes disable and owns a n individual Disability Income policy. When is R
eligible to receive disability benefits? - CORRECT ANSWER ✔✔- Upon
satisfying the elimination period requirement
Premature IRA distributions are assessed a penalty tax of: - CORRECT ANSWER
✔✔- 10%
An individual who purchases a Life annuity is given protection against: -
CORRECT ANSWER ✔✔- the risk of living longer than expected
2|Page
,Which of the following types of Term Life policies most likely contains a
Renewability feature? - CORRECT ANSWER ✔✔- 10 year Convertible Term
Before a life insurance policy is issued, which of these components of the contact
is required? - CORRECT ANSWER ✔✔- Applicant's signature on application
A Hospital/Surgical Expense policy was purchased for a family of four in March of
2013. The policy was issued with a $500 deductible and a limit of four deductibles
per calendar year. Two claims were pain in September 2013, each incurring
medical expense in excess of the deductible amount as well. What would be this
family's out-of-pocket medical expense for 2013? - CORRECT ANSWER ✔✔-
$1000
Which of the following MUST be included with the continuation of coverage of a
group Hospital, Surgical, and Major medical policy?
A) Chiropractic coverage
B) Vision care
C) Wellness program
D) Hospital expense - CORRECT ANSWER ✔✔- Hospital expense
The Notice of Claims provision requires a policyowner to: - CORRECT ANSWER
✔✔- Notify an insurer of a claim within a specified time
What kind of insurance policy supplies an income stream over a set period of time
that starts when the insured dies? - CORRECT ANSWER ✔✔- Family
Maintenance Policy
3|Page
, S filed a written Proof of Loss for a Disability Income claim on September 1. The
insurance company did not respond to the claim. Scan take legal action against the
insurer beginning: - CORRECT ANSWER ✔✔- November 1
Which of these is NOT considered to be an element of an insurance contract?
A) the offer
B) acceptance
C) negotiating
D) consideration - CORRECT ANSWER ✔✔- negotiating
T would like to be assured $10,000 is available in 10 years to replace a roof on his
house. What kind of $10,000 policy should T purchase? - CORRECT ANSWER
✔✔- 10-year endowment
Which statement about whole life policy is true? - CORRECT ANSWER ✔✔-
Cash value may be borrowed against
A terminated employee must have been covered for a LEAST____ month(s) under
a Group Health Insurance policy immediately prior to termination in order to be
eligible continuation of coverage. - CORRECT ANSWER ✔✔- 3 months
Death benefits for suicide must be paid if the policy has been in force for at
LAEST - CORRECT ANSWER ✔✔- 2 years
Which mode of payment is NOT used by health insurance policies?
A) Monthly premium
B) Annual premium
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