FINAL EXAM - NORTH CAROLINA LIFE AND HEALTH|UPDATED&VERIFIED|GUARANTEED SUCCESS

Which of the following is the MOST important factor when deciding how much Disability Income coverage an applicant should purchase? ... 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 free-look period has expired Additional coverage can be added to a Whole Life policy by adding a(n) decreasing term rider All of the following actions are considered rebating EXCEPT sharing commissions with other licensed and appointed agents One of the stated purposes of the Life and Health Insurance Guaranty Association is to assist in the prevention of insurer insolvencies Which of the following statements is CORRECT about the period in which a Term Policy can be converted? It varies according to the contracts Insurance agents MUST obtain a license from North Carolina's Commissioner of Insurance An accident policy will most likely pay a benefit for a(n) off-the-job accident K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would cover her loss of income? Disability Income K has a health policy that must be renewed by the insurer and the premiums can only be increased if applied to the entire class of insureds. This type of policy is considered guaranteed renewable M's insurance company denied a reinstatement application for her lapsed health insurance policy. The company did not notify M of this denial. How many days from the reinstatement application date does the insurance company have to notify M of the denial before the policy will be automatically placed back in force? 45 days B is a teacher who was injured in a car accident and cannot work. She is now receiving monthly benefits as a result of this accident. Which type of policy does B have? Disability Income Which of the following services is NOT covered under a hospitalization expense policy? surgeon's fees Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called representations 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 free-look period has expired Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the marital deduction J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value? 20-pay Life The most important factor to consider when determining whether to convert term insurance at the insured's attained age or the insured's original age is cost The Consideration clause of an insurance contract includes the schedule and amount of premium payments T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide? Income that cannot be outlived by the owner If an individual has an Accidental Death and Dismemberment policy and dies, an autopsy can be performed in all these situations EXCEPT When the state prohibits this by law The type of annuity that can be purchased with one monetary deposit is called a(n) Immediate annuity Which of the following statements is CORRECT about accelerated death benefits? Must have a terminal illness to qualify Which rider provides coverage for a child under a parent's life insurance policy? Child term rider Which of the following BEST describes how pre-admission certifications are used? Used to prevent nonessential medical costs T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary? Request of the change will be refused If the Commissioner of insurance finds that a licensed person has used fraudulent, coercive, or dishonest practices or has proved to be incompetent, untrustworthy, or financially irresponsible, the law allows the Commissioner to suspend, revoke, or refuse to renew the agent's license T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five years later, T commits suicide. How much will the insurer pay? $50,000 What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies? Family Maintenance Policy J has an Accidental Death and Dismemberment policy with a principal sum of $50,000. While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his policy? $25,000 G purchased a Family Income policy at age 40. The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income? 10 years The following acts are examples of unfair methods of competition and deceptive practices in the business of insurance EXCEPT the use of comparisons showing that a policy has higher benefits According to the Information and Privacy Protection Act, when access to recorded personal information is requested following an adverse underwriting decision, the insurer must make the information available within how many business days? 30 Under the Affordable Care Act (ACA), health coverage is provided for dependents up to the age of 26 Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy? Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company