North Carolina Health Insurance License Exam 2025: 200 Practice Questions & Test Bank

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North Carolina Health Insurance License Test Newest

2025 Actual Exam Test Bank With 200 Questions and

Correct Answers (Verified Answers) Already Graded

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When a company is licensed in a state, it is considered..

.....ANSWER..... admitted

A fiduciary is a .....ANSWER..... person in a position of financial

trust

Which of the following levels of agent authority is a written

agreement with the issuer? .....ANSWER..... express authority

What is a "physical" hazard? .....ANSWER..... wet floor, fallen

down tree, ice on sidewalk

What is a "morale" hazard? .....ANSWER..... carelessness

What is a "moral" hazard? .....ANSWER..... dishonesty

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Who sells insurance products for several companies?

.....ANSWER..... independent agents

Who sells insurance products for only one company?

.....ANSWER..... captive agents

Agents represent the.. .....ANSWER..... insurer

Brokers/consultants represent the.. .....ANSWER..... insured

What does CANHAM stand for? .....ANSWER..... Calculable

Affordable

Non-catastrophic

Homogeneous

Accidental

Measurable

What risk management method do insurance companies use?

.....ANSWER..... transfer

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At the state level, the government is involved in providing..

.....ANSWER..... unemployment insurance

At the federal level, the government is involved in providing..

.....ANSWER..... flood, war risk, federal crop, and nuclear energy

liability insurance

Insurance is a contract that.. .....ANSWER..... transfers the risk of

financial loss from an individual or business to an insurance

company

Direct response marketing includes.. .....ANSWER..... mail,

newspapers, magazines, TV, and the internet (No producer

agent)

The first party of an insurance contract is.. .....ANSWER..... insured

The second party of an insurance contract is.. .....ANSWER.....

insurer

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Surplus lines insurance is placed with a.. .....ANSWER..... non

admitted carrier by a surplus lines agent

What is the cause of a loss .....ANSWER..... peril

Changes in an insurance application must be initiated by..

.....ANSWER..... the applicant

The USA PATRIOT ACT is designed to.. .....ANSWER..... prevent,

detect, and prosecute international money laundering and

financing of terrorism

Who pays for medical exams and any tests that are required

during the underwriting process? .....ANSWER..... The insurer

Part one of the application includes.. .....ANSWER..... all general

and personal data about the insured

Most state laws allow life insurance applications to be

backdated up to.. .....ANSWER..... 6 months