Final Exam - North Carolina Life and Health
with Verified Solutions
Which of the following is the MOST important factor when deciding how much Disability Income
coverage an applicant should purchase?
M completes an application for life insurance but does not pay the initial premium. All of these
actions must occur before M's policy goes into effect EXCEPT
free-look period has expired
Additional coverage can be added to a Whole Life policy by adding a(n)
decreasing term rider
All of the following actions are considered rebating EXCEPT
sharing commissions with other licensed and appointed agents
One of the stated purposes of the Life and Health Insurance Guaranty Association is to
assist in the prevention of insurer insolvencies
Which of the following statements is CORRECT about the period in which a Term Policy can be
converted?
It varies according to the contracts
Insurance agents MUST obtain a license from North Carolina's
Commissioner of Insurance
An accident policy will most likely pay a benefit for a(n)
off-the-job accident
K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would
cover her loss of income?
Disability Income
K has a health policy that must be renewed by the insurer and the premiums can only be increased if
applied to the entire class of insureds. This type of policy is considered
guaranteed renewable
M's insurance company denied a reinstatement application for her lapsed health insurance policy. The
company did not notify M of this denial. How many days from the reinstatement application date
does the insurance company have to notify M of the denial before the policy will be automatically
placed back in force?
45 days
B is a teacher who was injured in a car accident and cannot work. She is now receiving monthly
benefits as a result of this accident. Which type of policy does B have?
Disability Income
, Which of the following services is NOT covered under a hospitalization expense policy?
surgeon's fees
Statements made on an insurance application that are believed to be true to the best of the
applicant's knowledge are called
representations
M completes an application for life insurance but does not pay the initial premium. All of these
actions must occur before M's policy goes into effect EXCEPT
free-look period has expired
Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the
balance of the IRA. The widow qualifies for the
marital deduction
J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of
policies will provide the most rapid growth of cash value?
20-pay Life
The most important factor to consider when determining whether to convert term insurance at the
insured's attained age or the insured's original age is
cost
The Consideration clause of an insurance contract includes
the schedule and amount of premium payments
T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will
this transaction provide?
Income that cannot be outlived by the owner
If an individual has an Accidental Death and Dismemberment policy and dies, an autopsy can be
performed in all these situations EXCEPT
When the state prohibits this by law
The type of annuity that can be purchased with one monetary deposit is called a(n)
Immediate annuity
Which of the following statements is CORRECT about accelerated death benefits?
Must have a terminal illness to qualify
Which rider provides coverage for a child under a parent's life insurance policy?
Child term rider
with Verified Solutions
Which of the following is the MOST important factor when deciding how much Disability Income
coverage an applicant should purchase?
M completes an application for life insurance but does not pay the initial premium. All of these
actions must occur before M's policy goes into effect EXCEPT
free-look period has expired
Additional coverage can be added to a Whole Life policy by adding a(n)
decreasing term rider
All of the following actions are considered rebating EXCEPT
sharing commissions with other licensed and appointed agents
One of the stated purposes of the Life and Health Insurance Guaranty Association is to
assist in the prevention of insurer insolvencies
Which of the following statements is CORRECT about the period in which a Term Policy can be
converted?
It varies according to the contracts
Insurance agents MUST obtain a license from North Carolina's
Commissioner of Insurance
An accident policy will most likely pay a benefit for a(n)
off-the-job accident
K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would
cover her loss of income?
Disability Income
K has a health policy that must be renewed by the insurer and the premiums can only be increased if
applied to the entire class of insureds. This type of policy is considered
guaranteed renewable
M's insurance company denied a reinstatement application for her lapsed health insurance policy. The
company did not notify M of this denial. How many days from the reinstatement application date
does the insurance company have to notify M of the denial before the policy will be automatically
placed back in force?
45 days
B is a teacher who was injured in a car accident and cannot work. She is now receiving monthly
benefits as a result of this accident. Which type of policy does B have?
Disability Income
, Which of the following services is NOT covered under a hospitalization expense policy?
surgeon's fees
Statements made on an insurance application that are believed to be true to the best of the
applicant's knowledge are called
representations
M completes an application for life insurance but does not pay the initial premium. All of these
actions must occur before M's policy goes into effect EXCEPT
free-look period has expired
Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the
balance of the IRA. The widow qualifies for the
marital deduction
J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of
policies will provide the most rapid growth of cash value?
20-pay Life
The most important factor to consider when determining whether to convert term insurance at the
insured's attained age or the insured's original age is
cost
The Consideration clause of an insurance contract includes
the schedule and amount of premium payments
T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will
this transaction provide?
Income that cannot be outlived by the owner
If an individual has an Accidental Death and Dismemberment policy and dies, an autopsy can be
performed in all these situations EXCEPT
When the state prohibits this by law
The type of annuity that can be purchased with one monetary deposit is called a(n)
Immediate annuity
Which of the following statements is CORRECT about accelerated death benefits?
Must have a terminal illness to qualify
Which rider provides coverage for a child under a parent's life insurance policy?
Child term rider
