Final Exam - North Carolina Life and Health | 150 Questions| Correct Answers.

Which of the following is the MOST important factor when deciding how much Disability Income coverage an applicant should purchase? - ANSWER 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 - ANSWER free-look period has expired Additional coverage can be added to a Whole Life policy by adding a(n) - ANSWER decreasing term rider All of the following actions are considered rebating EXCEPT - ANSWER sharing commissions with other licensed and appointed agents One of the stated purposes of the Life and Health Insurance Guaranty Association is to - ANSWER 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? - ANSWER It varies according to the contracts Insurance agents MUST obtain a license from North Carolina's - ANSWER Commissioner of Insurance An accident policy will most likely pay a benefit for a(n) - ANSWER 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? - ANSWER 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 - ANSWER 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? - ANSWER 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? - ANSWER Disability Income Which of the following services is NOT covered under a hospitalization expense policy? - ANSWER surgeon's fees Statements made on an insurance application that are believed to be true to the best of the applica