NORTH CAROLINA XCEL TESTING LIFE HEALTH

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INSURANCE EXAM STUDY

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

-Format: Multiple-choice / Flashcard

Question 1: For an individual health policy that is paid for on a monthly basis, the Grace Period provision is a MINIMUM of how many days?

Answer:

10 Question 2: A person is required to be AT LEAST how old before he or she is licensed as an agent in North Carolina?

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18 Question 3: A whole life insurance policyowner does not wish to continue making premium payments. Which of the following enables the policyowner to sell the policy for more than its cash value?

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Life settlement contract Question 4: Which of the following phrases refers to the fees charged by a healthcare professional?

Answer:

Usual, customary, and reasonable expenses

Question 5: The part of a life insurance policy guaranteed to be true is called a(n):

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warranty Question 6: When L applies for a Health Insurance Policy, L unintentionally fails to list a previous visit to a cardiologist. If the insurance company contests the policy, it MUST do so within 2 years

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from the date of issue Question 7: Group/voluntary long-term care policy premiums are typically deducted from the employee's income and,

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are less costly as compared to individual long term care coverage

Question 8: All of the following actions are considered rebating EXCEPT

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sharing commissions with other licensed and appointed agents Question 9: If after satisfactory proof of loss, an insurer fails or refuses to pay death proceeds, the insurer must pay interest on the proceeds after how many days?

Answer:

30

Question 10: What is the purpose of a Policy Summary?

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It highlights the critical parts of the policy issued Question 11: The Consideration clause of an insurance contract includes:

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the schedule and amount of premium payments Question 12: 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

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not eligible for the insurance because as a seasonal employee K does not meet the definition of "employee" under North Carolina law

Question 13: What type of reinsurance contract involves two companies automatically sharing their risk exposure?

Answer:

Treaty

Question 14: Which statement is TRUE regarding a Variable Whole Life policy?

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A minimum guaranteed Death benefit is provided

Question 15: No insurer shall refuse to insure an individual because of

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race Question 16: Which statement regarding the Change of Beneficiary provision is true?

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The policyowner can change the beneficiary Question 17: Every Group Health Policy providing benefits for chemical dependency treatments must include, for the life of the contract, a

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minimum benefit of $16,000 Question 18: The Misstatement of Age provision requires that if the age of the insured is misstated, then any amount payable is

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an amount that the premiums paid would have purchased at the current age or ages Question 19: Which of the following statements BEST describes how a policy that uses the "accidental bodily injury" definition of an accident differs from one that uses the "accidental means" definition?

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Less restrictive

Question 20: Which of these is NOT a type of agent authority?

Answer:

Principal

Question 21: The Rules Governing Life Insurance and Annuity Replacements define

replacement as

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exchanging an existing policy for a new policy Question 22: The fund that assures policyholders payment of death benefits on Life Policies, if the company is insolvent at the time of the claim, is called the

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Life and Health Insurance Guaranty Association Question 23: Making false statements about the financial condition of another insurance company is called

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defamation Question 24: Life and health insurance policies are:

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Unilateral contracts Question 25: The Legal Actions provision of an insurance contract is designed to do all of the

following, EXCEPT:

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protect the producer Question 26: Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features?

Answer:

Aleatory