NORTH CAROLINA HEALTH INSURANCE
STATE 2026 CERTIFICATION EVALUATION
SCRIPT SOLUTIONS GRADED A+
⩥ Which of the following is an example of a producer being involved in
an unfair trade practice of rebating?
A. Telling a client that his first premium will be waived if he purchases
the insurance policy today
B. Inducing the insured to drop a policy in favor of another one when it
is not in the insured's best interest
C. Charging a client a higher premium for the same policy as another
client in the same insuring class
D. Making deceptive statements about a competitor.
Answer: A.
⩥ Which characteristic does NOT describe managed care?
A. Shared risk
B. Preventative care
C. Unlimited access to providers
D. High quality care.
Answer: C.
,⩥ An insurer devises in intimidation strategy in order to corner a large
portion of the insurance market. Which of the following best describes
this practice?
A. Unfair discrimination
B. Defamation
C. Illegal
D. A legal advertising strategy.
Answer: C.
⩥ Insurers may change which of the following on a guaranteed
renewable health insurance policy?
A. No changes are permitted
B. Rates by class
C. Coverage
D. Individual rates.
Answer: B.
⩥ An individual is insured under his employer's group disability income
policy. The insured suffered in accident while on vacation that left him
unable to work for four months. If the disability income policy pays the
benefit, which of the following would be true?
A. Benefits that are attributed to employer contributions are fully taxable
to the employee as income
, B. The insured has to wait two more months to start receiving the
benefits
C. For the business, payments are not considered tax deductible as an
ordinary business expense
D. The insured can deduct his medical expense benefits from his income
tax.
Answer: A.
⩥ The commissioner reports any violations of insurance laws and
regulations to the
A. Attorney general
B. Guaranty association
C. Governor
D. NAIC.
Answer: A.
⩥ Which of the following is NOT a feature of a noncancelable policy?
A. The guarantee to renew coverage usually applies until the insured
reaches certain age
B. The insured has the right to renew the policy for the life of the
contract
C. The insurer may terminate the contract only at renewal for certain
conditions
STATE 2026 CERTIFICATION EVALUATION
SCRIPT SOLUTIONS GRADED A+
⩥ Which of the following is an example of a producer being involved in
an unfair trade practice of rebating?
A. Telling a client that his first premium will be waived if he purchases
the insurance policy today
B. Inducing the insured to drop a policy in favor of another one when it
is not in the insured's best interest
C. Charging a client a higher premium for the same policy as another
client in the same insuring class
D. Making deceptive statements about a competitor.
Answer: A.
⩥ Which characteristic does NOT describe managed care?
A. Shared risk
B. Preventative care
C. Unlimited access to providers
D. High quality care.
Answer: C.
,⩥ An insurer devises in intimidation strategy in order to corner a large
portion of the insurance market. Which of the following best describes
this practice?
A. Unfair discrimination
B. Defamation
C. Illegal
D. A legal advertising strategy.
Answer: C.
⩥ Insurers may change which of the following on a guaranteed
renewable health insurance policy?
A. No changes are permitted
B. Rates by class
C. Coverage
D. Individual rates.
Answer: B.
⩥ An individual is insured under his employer's group disability income
policy. The insured suffered in accident while on vacation that left him
unable to work for four months. If the disability income policy pays the
benefit, which of the following would be true?
A. Benefits that are attributed to employer contributions are fully taxable
to the employee as income
, B. The insured has to wait two more months to start receiving the
benefits
C. For the business, payments are not considered tax deductible as an
ordinary business expense
D. The insured can deduct his medical expense benefits from his income
tax.
Answer: A.
⩥ The commissioner reports any violations of insurance laws and
regulations to the
A. Attorney general
B. Guaranty association
C. Governor
D. NAIC.
Answer: A.
⩥ Which of the following is NOT a feature of a noncancelable policy?
A. The guarantee to renew coverage usually applies until the insured
reaches certain age
B. The insured has the right to renew the policy for the life of the
contract
C. The insurer may terminate the contract only at renewal for certain
conditions
