NC INSURANCE LICENSING EXAM
WITH COMPLETE SOLUTIONS
P is a producer who notices 5 questions on a life application were not answered. What
actions should P take? -ANSSet up a meeting with the applicant to answer the
remaining questions
Which of the following does Social Security NOT provide benefits for? -
ANSDismemberment
An Accident/Health policyholder has ____ days to return the policy and receive a full
refund on premiums -ANS10
Under a Renewable Term policy, -ANSthe renewable premium is calculated on the
basis of the insured's attained age
Which of the following BEST describes a short-term medical expense policy? -
ANSNonrenewable
W is a 39-year old female who just purchased an annuity to provide income for life
starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n) -
ANSImmediate annuity
How are Roth IRA distributions normally taxed? -ANSDistributions are received tax-free
An insurance applicant was recently denied insurance coverage. The applicant is
requesting access from the insurer to recorded personal information regarding this
decision. Under the Information and Privacy Protection Act, the insurer MUST make the
information available within ___ business days -ANS30
What is a warranty? -ANSis a statement guaranteed to be true
, S is a life insurance policyowner and enters into a written agreement to receive
immediate cash in exchange for the sale and transfer of her life insurance policy. This
agreement is referred to as a(n) -ANSViatical Settlement
How is the Life and Health Insurance Guaranty Associated funded? -ANSfrom member
companies
Quarterly premium payments increase the annual cost of insurance because -
ANSinterest to the insurer is decreased while the administrative costs are increased
Who does an insurance broker in North Carolina represent? -ANSInsured
When an existing life insurance policy is being reissued with a reduction in cash value,
the agent must sign the -ANSNotice Regarding Replacement of Life Insurance of
Annuity
Whole Life insurance policies are contractually guaranteed to provide each of the
following, EXCEPT -ANSpartial withdrawal features beyond a surrender charge period
K works for XYZ Clothing Store from September through December each year. K works
45 hours a week for this period of time. The employer's Group Policy would consider K -
ANSnot eligible for the insurance because as a seasonal employee K does not meet the
definition of "employee" under NC law
M is insured under a basic Hospital/Surgical Expense policy. A physician performs
surgery on M. What determines the claim M is eligible for? -ANSDetermined by the
terms of the policy
Which health policy clause specifies the amount of benefits to be paid? -ANSInsuring
In order to establish a Health Reimbursement Arrangement (HRA), it MUST -ANSbe
established by the employer
Defamation occurs when an agent makes a false statement intended to -ANSmalign
another insurer
Which of these circumstances REQUIRE an insurer to clearly specify questions
designed to obtain information solely for marketing research? -ANSAny insurance
transaction
If its employees share in the cost of insurance, what type of group life insurance plan
would a corporation have? -ANSContributory
The investment gains from a Universal Life Policy usually go toward: -ANSthe cash
value
WITH COMPLETE SOLUTIONS
P is a producer who notices 5 questions on a life application were not answered. What
actions should P take? -ANSSet up a meeting with the applicant to answer the
remaining questions
Which of the following does Social Security NOT provide benefits for? -
ANSDismemberment
An Accident/Health policyholder has ____ days to return the policy and receive a full
refund on premiums -ANS10
Under a Renewable Term policy, -ANSthe renewable premium is calculated on the
basis of the insured's attained age
Which of the following BEST describes a short-term medical expense policy? -
ANSNonrenewable
W is a 39-year old female who just purchased an annuity to provide income for life
starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n) -
ANSImmediate annuity
How are Roth IRA distributions normally taxed? -ANSDistributions are received tax-free
An insurance applicant was recently denied insurance coverage. The applicant is
requesting access from the insurer to recorded personal information regarding this
decision. Under the Information and Privacy Protection Act, the insurer MUST make the
information available within ___ business days -ANS30
What is a warranty? -ANSis a statement guaranteed to be true
, S is a life insurance policyowner and enters into a written agreement to receive
immediate cash in exchange for the sale and transfer of her life insurance policy. This
agreement is referred to as a(n) -ANSViatical Settlement
How is the Life and Health Insurance Guaranty Associated funded? -ANSfrom member
companies
Quarterly premium payments increase the annual cost of insurance because -
ANSinterest to the insurer is decreased while the administrative costs are increased
Who does an insurance broker in North Carolina represent? -ANSInsured
When an existing life insurance policy is being reissued with a reduction in cash value,
the agent must sign the -ANSNotice Regarding Replacement of Life Insurance of
Annuity
Whole Life insurance policies are contractually guaranteed to provide each of the
following, EXCEPT -ANSpartial withdrawal features beyond a surrender charge period
K works for XYZ Clothing Store from September through December each year. K works
45 hours a week for this period of time. The employer's Group Policy would consider K -
ANSnot eligible for the insurance because as a seasonal employee K does not meet the
definition of "employee" under NC law
M is insured under a basic Hospital/Surgical Expense policy. A physician performs
surgery on M. What determines the claim M is eligible for? -ANSDetermined by the
terms of the policy
Which health policy clause specifies the amount of benefits to be paid? -ANSInsuring
In order to establish a Health Reimbursement Arrangement (HRA), it MUST -ANSbe
established by the employer
Defamation occurs when an agent makes a false statement intended to -ANSmalign
another insurer
Which of these circumstances REQUIRE an insurer to clearly specify questions
designed to obtain information solely for marketing research? -ANSAny insurance
transaction
If its employees share in the cost of insurance, what type of group life insurance plan
would a corporation have? -ANSContributory
The investment gains from a Universal Life Policy usually go toward: -ANSthe cash
value
