NORTH CAROLINA LIFE AND HEALTH
PRE-LICENSING CERTIFICATION EXAM:
QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+
An agent inducing an insured to lapse, forfeit, or surrender insurance through
misrepresentation is committing the illegal act of - CORRECT ANSWER ✔✔-
twisting
An agent who illegally discounts insurance premium is said to be engaged in -
CORRECT ANSWER ✔✔- rebating
An agent who sells insurance policies for an unauthorized insurer in North
Carolina may be personally liable for - CORRECT ANSWER ✔✔- all claims from
policies sold by the agent
An individual MUST be a minimum of ___ years of age to be a licensed North
Carolina insurance agent. - CORRECT ANSWER ✔✔- 18
How long must every insurance agent maintain all records, books, and documents
related to each insurance transaction? - CORRECT ANSWER ✔✔- 5 years
If a life insurance company becomes insolvent, the fund that guarantees
policyowners payment of death benefits is known as the - CORRECT ANSWER
✔✔- Life and Health Insurance Guaranty Association
1|Page
,If an insurance applicant is being investigated into his/her personal character and
mode of living, the applicant MUST be notified of this investigation. Which of the
following makes this a requirement? - CORRECT ANSWER ✔✔- Insurance
Information and Privacy Protection Act
In the event of a replacement, what MUST be given to the insurance applicant at
the time of application? - CORRECT ANSWER ✔✔- Notice Regarding
Replacement
K sent a renewal premium payment to her insurer that would extend her coverage
beyond the policy's maximum age limit. If the insurer accepts this premium
payment, it - CORRECT ANSWER ✔✔- must continue the coverage to the end of
the period of time for which the premium was accepted
North Carolina insurance law specifically allows the Commissioner of Insurance to
issue a temporary license to which of the following individuals? - CORRECT
ANSWER ✔✔- A surviving spouse of a deceased agent
One role of the Life and Health Guaranty Association is to - CORRECT ANSWER
✔✔- maintain public confidence in the promises of insurers
T is employed by an amusement park from June through September, working 50
hours per week. The amusement park's Group Policy would - CORRECT
ANSWER ✔✔- consider T NOT eligible for the insurance because as a seasonal
employee, T does not meet the definition of "employee" under North Carolina law
Before an insurer can increase the rates for individual accident and health
policyowners, the insurer must provide written notice at least ___ days before the
effective rate increase. - CORRECT ANSWER ✔✔- 30
2|Page
, Chemical dependency treatment under a Group Health policy MUST include (over
the life of the contract) a minimum benefit of - CORRECT ANSWER ✔✔-
$16,000
What is one of the requirements for an applicant to become licensed as a North
Carolina accident and health insurance agent? - CORRECT ANSWER ✔✔-
Complete at least 20 hours of instruction approved by the Commissioner of
Insurance
The Life and Health Insurance Guaranty Association in North Carolina has
regulations that apply ONLY to - CORRECT ANSWER ✔✔- Life and Health
policies issued by companies authorized in North Carolina
The Life and Health Insurance Guaranty Association is funded by authorized
insurers in this State. One of the roles of this organization is to - CORRECT
ANSWER ✔✔- assist in the prevention of insurer insolvencies
Which of the following MUST be included with the continuation of coverage of a
group Hospital, Surgical, and Major Medical policy? - CORRECT ANSWER ✔✔-
Hospital expenses
A life insurance contract may NOT be voided by the insurance company beginning
___ year(s) after the policy's issue date. - CORRECT ANSWER ✔✔- 2
Under what condition may a lender require the purchase of insurance as a
condition of making a loan? - CORRECT ANSWER ✔✔- Only if the borrower is
not restricted in his/her choice of insurers
3|Page
PRE-LICENSING CERTIFICATION EXAM:
QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+
An agent inducing an insured to lapse, forfeit, or surrender insurance through
misrepresentation is committing the illegal act of - CORRECT ANSWER ✔✔-
twisting
An agent who illegally discounts insurance premium is said to be engaged in -
CORRECT ANSWER ✔✔- rebating
An agent who sells insurance policies for an unauthorized insurer in North
Carolina may be personally liable for - CORRECT ANSWER ✔✔- all claims from
policies sold by the agent
An individual MUST be a minimum of ___ years of age to be a licensed North
Carolina insurance agent. - CORRECT ANSWER ✔✔- 18
How long must every insurance agent maintain all records, books, and documents
related to each insurance transaction? - CORRECT ANSWER ✔✔- 5 years
If a life insurance company becomes insolvent, the fund that guarantees
policyowners payment of death benefits is known as the - CORRECT ANSWER
✔✔- Life and Health Insurance Guaranty Association
1|Page
,If an insurance applicant is being investigated into his/her personal character and
mode of living, the applicant MUST be notified of this investigation. Which of the
following makes this a requirement? - CORRECT ANSWER ✔✔- Insurance
Information and Privacy Protection Act
In the event of a replacement, what MUST be given to the insurance applicant at
the time of application? - CORRECT ANSWER ✔✔- Notice Regarding
Replacement
K sent a renewal premium payment to her insurer that would extend her coverage
beyond the policy's maximum age limit. If the insurer accepts this premium
payment, it - CORRECT ANSWER ✔✔- must continue the coverage to the end of
the period of time for which the premium was accepted
North Carolina insurance law specifically allows the Commissioner of Insurance to
issue a temporary license to which of the following individuals? - CORRECT
ANSWER ✔✔- A surviving spouse of a deceased agent
One role of the Life and Health Guaranty Association is to - CORRECT ANSWER
✔✔- maintain public confidence in the promises of insurers
T is employed by an amusement park from June through September, working 50
hours per week. The amusement park's Group Policy would - CORRECT
ANSWER ✔✔- consider T NOT eligible for the insurance because as a seasonal
employee, T does not meet the definition of "employee" under North Carolina law
Before an insurer can increase the rates for individual accident and health
policyowners, the insurer must provide written notice at least ___ days before the
effective rate increase. - CORRECT ANSWER ✔✔- 30
2|Page
, Chemical dependency treatment under a Group Health policy MUST include (over
the life of the contract) a minimum benefit of - CORRECT ANSWER ✔✔-
$16,000
What is one of the requirements for an applicant to become licensed as a North
Carolina accident and health insurance agent? - CORRECT ANSWER ✔✔-
Complete at least 20 hours of instruction approved by the Commissioner of
Insurance
The Life and Health Insurance Guaranty Association in North Carolina has
regulations that apply ONLY to - CORRECT ANSWER ✔✔- Life and Health
policies issued by companies authorized in North Carolina
The Life and Health Insurance Guaranty Association is funded by authorized
insurers in this State. One of the roles of this organization is to - CORRECT
ANSWER ✔✔- assist in the prevention of insurer insolvencies
Which of the following MUST be included with the continuation of coverage of a
group Hospital, Surgical, and Major Medical policy? - CORRECT ANSWER ✔✔-
Hospital expenses
A life insurance contract may NOT be voided by the insurance company beginning
___ year(s) after the policy's issue date. - CORRECT ANSWER ✔✔- 2
Under what condition may a lender require the purchase of insurance as a
condition of making a loan? - CORRECT ANSWER ✔✔- Only if the borrower is
not restricted in his/her choice of insurers
3|Page
