NC life and health insurance study questions with certified answers 100%

A 20-year family income policy was purchased effective April 1, 2001. The insured died four months later, on August 1, 2001. The beneficiary receives monthly income for A10 years. B19 years and 8 months. C9 years and 8 months. D20 years. ans B Monthly benefits paid for the remainder of the 20 year benefit period. A deferred annuity is surrendered prior to annuitization. Which of the following best describes the nonforfeiture value of the annuity? AThe surrender value will not be more than 80% of the cash value in the annuity at the time of surrender. BThe surrender value should be equal to 100% of the premium paid, minus any prior withdrawals and surrender charges. CA deferred annuity cannot be surrendered prior to annuitization. The owner must wait until the annuitization period begins to receive any payments. DThe surrender value will be based on current interest rates. ans B A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums? AThe insured's premiums will be waived until she is 21. BThe premiums will become tax deductible until the insured's 18th birthday. CSince it is the policyowner, and not the insured, who has become disabled, the life insurance policy will not be affected. DThe insured will have to pay premiums for 6 months. If at the end of this period the father is still disabled, the insured will be refunded the premiums. ans A A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums? AThe insured's premiums will be waived until she is 21. BThe premiums will become tax deductible until the insured's 18th birthday. CSince it is the policyowner, and not the insured, who has become disabled, the life insurance policy will not be affected. DThe insured will have to pay premiums for 6 months. If at the end of this period the father is still disabled, the insured will be refunded the premiums. ans A If the payor (usually a parent or guardian) becomes disabled for at least 6 months or dies, the insurer will waive the premiums until the minor reaches a certain age, such as 21. A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium? AIf the daughter is disabled for more than 3 months BIf the daughter is disabled for any length of time CIf the father is disabled for more than 6 months DIf the father is disabled for at least a year ans C Payor benefit only pays if the owner, the father in this example, is disabled for at least 6 months. A friend helped an insurance producer sell an insurance policy. The producer can share the commission with the friend if AThe Commissioner gives the producer verbal permission to share. BThe producer applies for a shared commission form for that fiscal year. CThe friend is licensed in the same line of insurance. DThe friend is licensed in any type of insurance. ans C A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why? AThe purpose of the group was to purchase life insurance. BTheir profession poses too high of a risk for the insurer. CThere are not enough people in the group to qualify for group life insurance. DThe group has not been established for long enough. ans A A group policy used to provide accident and health coverage on a group of persons being transported by a common carrier, without naming the insured persons individually is called ABlanket Policy. BActivity policy. CSpecified disease policy. DCertificate of Coverage Policy. ans A A guaranteed renewable health insurance policy allows the APolicyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class. BPolicyholder to renew the policy to a stated age and guarantees the premium for the same period. CPolicy to be renewed at time of expiration, but the policy can be canceled for cause during the policy term. DInsurer to renew the policy to a specified age. ans A A man is injured while robbing a convenience store. How does his major medical policy handle the payment of his claim? A50% of claim will be paid. BIf the man is not convicted, he will get 75% of his claim paid. CThe claim is paid in full. DClaim is denied if his policy contains the Illegal Occupation provision. ans D