North Carolina Health Insurance License
Test 2025
North Carolina Health Insurance License Test
2025 Prep Test Bank With Verified Questions
and Correct Detailed Answers ( Rationales )
Actual Exam Practice| NC Health Insurance
Exam Prep Test Bank (Latest)
An insurer authorized to do business within this state is considered what type of insurer?
A
Alien
B
Admitted
C
Domestic
D
Foreign
- Correct Answer :Admitted
An insurer authorized to do business in this state is referred to as admitted, and could be
either domestic, foreign, or alien domiciled.
All of the following are essential elements of a legal contract, except:
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, North Carolina Health Insurance License
Test 2025
A
Consideration
B
Competent Parties
C
Legal Purpose
D
Representations
- Correct Answer :Representations
Representations are not one of the four essential elements of a legal contract. Offer and
Acceptance is the essential element missing in the responses.
This organization is licensed in one state and may insure members in other states consisting
of a large number of similar units with similar risk exposures such as theme parks, go-cart
tracks, or water slides is known as a(n) _________.
A
Risk Retention Group
B
Lloyd's of London Association
C
Reciprocal Insurance Company
D
Fraternal Benefit Association
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- Correct Answer :Risk Retention Group
A risk retention group is a group owned insurer that primarily assumes and spreads the
liability of related risks of its members with each member assuming a portion of the risks
insured.
The Financial Privacy rule requires insurers to provide consumers with a privacy notice:
A
At time of application and monthly thereafter
B
With each billing statement
C
At the time of policy delivery and quarterly thereafter
D
At the time the consumer relationship is established and annually thereafter
- Correct Answer :At the time the consumer relationship is established and annually
thereafter
The Financial Privacy rule requires insurers, to provide each consumer with a privacy notice
at the time the consumer relationship is established and annually thereafter.
_____________ consists of groups of underwriters called syndicates, each of which
specializes in insuring a particular type of risk.
A
Self insurers
B
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, North Carolina Health Insurance License
Test 2025
Lloyds of London
C
Reciprocal insurers
D
Risk retention insurers
- Correct Answer :Lloyds of London
Lloyd's of London is not an insurance company, but consists of groups of underwriters
called Syndicates, each of which specializes in insuring a particular type of risk.
______ are primarily social organizations that engage in charitable and benevolent activities
consisting of members of a given faith, lodge, or order, and are usually organized as non-
profits.
A
Domestic Insurance Companies
B
Mutual Insurance Companies
C
Fraternal Benefit Societies
D
Stock Insurance Companies
- Correct Answer :Fraternal Benefit Societies
This question describes a Fraternal Benefit Society.
A+ TEST BANK 4
Test 2025
North Carolina Health Insurance License Test
2025 Prep Test Bank With Verified Questions
and Correct Detailed Answers ( Rationales )
Actual Exam Practice| NC Health Insurance
Exam Prep Test Bank (Latest)
An insurer authorized to do business within this state is considered what type of insurer?
A
Alien
B
Admitted
C
Domestic
D
Foreign
- Correct Answer :Admitted
An insurer authorized to do business in this state is referred to as admitted, and could be
either domestic, foreign, or alien domiciled.
All of the following are essential elements of a legal contract, except:
A+ TEST BANK 1
, North Carolina Health Insurance License
Test 2025
A
Consideration
B
Competent Parties
C
Legal Purpose
D
Representations
- Correct Answer :Representations
Representations are not one of the four essential elements of a legal contract. Offer and
Acceptance is the essential element missing in the responses.
This organization is licensed in one state and may insure members in other states consisting
of a large number of similar units with similar risk exposures such as theme parks, go-cart
tracks, or water slides is known as a(n) _________.
A
Risk Retention Group
B
Lloyd's of London Association
C
Reciprocal Insurance Company
D
Fraternal Benefit Association
A+ TEST BANK 2
, North Carolina Health Insurance License
Test 2025
- Correct Answer :Risk Retention Group
A risk retention group is a group owned insurer that primarily assumes and spreads the
liability of related risks of its members with each member assuming a portion of the risks
insured.
The Financial Privacy rule requires insurers to provide consumers with a privacy notice:
A
At time of application and monthly thereafter
B
With each billing statement
C
At the time of policy delivery and quarterly thereafter
D
At the time the consumer relationship is established and annually thereafter
- Correct Answer :At the time the consumer relationship is established and annually
thereafter
The Financial Privacy rule requires insurers, to provide each consumer with a privacy notice
at the time the consumer relationship is established and annually thereafter.
_____________ consists of groups of underwriters called syndicates, each of which
specializes in insuring a particular type of risk.
A
Self insurers
B
A+ TEST BANK 3
, North Carolina Health Insurance License
Test 2025
Lloyds of London
C
Reciprocal insurers
D
Risk retention insurers
- Correct Answer :Lloyds of London
Lloyd's of London is not an insurance company, but consists of groups of underwriters
called Syndicates, each of which specializes in insuring a particular type of risk.
______ are primarily social organizations that engage in charitable and benevolent activities
consisting of members of a given faith, lodge, or order, and are usually organized as non-
profits.
A
Domestic Insurance Companies
B
Mutual Insurance Companies
C
Fraternal Benefit Societies
D
Stock Insurance Companies
- Correct Answer :Fraternal Benefit Societies
This question describes a Fraternal Benefit Society.
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