NC INSURANCE LICENSING EXAM

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NC INSURANCE LICENSING EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: A CEO's personal assistant suffered injuries at home and as a result, was unable to work for four months. Which type of policy will pay a monthly benefit to the personal assistant?

Answer:

Disability Income Question 2: An agent takes an individual Disability Income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance

company will take is to:

Answer:

determine if the applicant is an acceptable risk by completing standard underwriting procedures Question 3: In order to establish a Health Reimbursement Arrangement (HRA), it MUST

Answer:

be established by the employer Question 4: Which of the following health insurance coverages is BEST suited for meeting the expenses of catastrophic illness?

Answer:

Major Medical

Question 5: The Consideration clause in a life insurance contract contains what pertinent information

Answer:

Amount of premium payments and when they are due Question 6: Who is normally considered to be the owner of a 403(b) tax-sheltered annuity?

Answer:

The employee Question 7: When does a life insurance contract become effective if the initial premium is not collected during the application process?

Answer:

When producer delivers policy and collects initial premium

Question 8: Defamation occurs when an agent makes a false statement intended to

Answer:

malign another insurer

Question 9: The insuring clause

Answer:

States the scope and limits of the coverage Question 10: P is an employee who quits her job and wants to convert her group health coverage to an individual policy. After the expiration of COBRA laws, which of the following statements is TRUE?

Answer:

She does NOT need to provide evidence of insurability Question 11: According to the Affordable Care Act (ACA), a dependent child's eligibility status determined by

Answer:

age

Question 12: Which of the following MUST be included with the continuation of coverage of a group Hospital, Surgical, and Major Medical policy?

Answer:

Hospital expenses

Question 13: Under a Renewable Term policy,

Answer:

the renewable premium is calculated on the basis of the insured's attained age Question 14: The investment gains from a Universal Life Policy usually go toward:

Answer:

the cash value Question 15: North Carolina insurance law specifically allows the Commissioner to issue a temporary license to which of the following individuals?

Answer:

A surviving spouse of a deceased agent

Question 16: In North Carolina, an agent obtains his/her license from the

Answer:

Commissioner of Insurance Question 17: The Health Insurance Portability and Accountability Act (HIPAA) gives privacy

protection for:

Answer:

health information Question 18: All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT

Answer:

Interest Only Question 19: Which of these circumstances REQUIRE an insurer to clearly specify questions designed to obtain information solely for marketing research?

Answer:

Any insurance transaction

Question 20: In Major Medical Expense policies, what is the intent of a Stop Loss provision?

Answer:

Limits an insured's out-of-pocket medical expenses Question 21: Which of the following is an effort to influence a person to buy an insurance product from you?

Answer:

Soliciting Question 22: An engineering firm that would suffer financially from the death of a project

manager should purchase a:

Answer:

Key Person Life Policy Question 23: K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?

Answer:

The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured Question 24: B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of

Answer:

additional Whole Life coverage at specified times Question 25: Which type of life insurance beneficiary requires his/her consent when a change of beneficiary is attempted by the policyowner?

Answer:

Irrevocable beneficiary

Question 26: Who does an insurance broker in North Carolina represent?

Answer:

Insured