1|Page
NC HEALTH INSURANCE (2025/2026) EXAM
PEARSON VUE WITH ALL COMPLETE QUESTIONS
AND DETAILED CORRECT ANSWERS (EXPERT
VERIFIED) FOR GUARANTEED PASS TOP-RATED
A+.
NC HEALTH INSURANCE
Ace your NC (North Carolina) Health Insurance (2025/2026) Exam –
Pearson VUE using this comprehensive resource. It includes updated
exam-style questions and key state-specific regulations aligning with
Pearson VUE testing standards for accurate practice.
Pure Risk ...... ANSWER ....... chance of loss or no loss
but not gain insurable
Speculative Risk ...... ANSWER ....... there is
possibility of loss but of gain no insurablility
exposure unit ...... ANSWER ....... subject to loss
peril ...... ANSWER ....... cause of loss
life insurance ...... ANSWER ....... death
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Health insurance ...... ANSWER ....... accident and
sickness
hazard ...... ANSWER ....... increases the likelihood or
severity of loss
Three types of hazard ...... ANSWER ....... physical,
moral, morale
physical hazard ...... ANSWER ....... arise from the
inherent characteristic of the exposure unit
Moral Hazard ...... ANSWER ....... lifestyle of the
insured person
Morale hazard ...... ANSWER ....... arise more from an
outlook on life
risk avoidance ...... ANSWER ....... eliminating all risk
altogether
risk retention ...... ANSWER ....... manage risk
Deduction
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self-insurance ...... ANSWER ....... instead of buying
health insurance and saving $ in the bank
Pure risk that are not insurable ...... ANSWER .......
Flood, War, Catastrophic losses
Intentional losses ...... ANSWER ....... not insurable
Adverse selection ...... ANSWER ....... bad for
insurance
insurance actuary ...... ANSWER ....... a specially
trained mathematician who calculates premiums
underwriter ...... ANSWER ....... checks out the medical
history of the proposed insured and other factors to
eliminate adverse selection against the insurance company,
issue policy premium restrictions
Days for applicant to requests an explanantion ......
ANSWER ....... 90 days
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Days insurance company must furnish an explanation ......
ANSWER ....... 21 days
A dispute must begin within in ...... ANSWER ....... 30
days
Law of Large numbers ...... ANSWER ....... the larger
the number the easier it is to predict losses
how much $ must a insurance company have in reserve at all
times ...... ANSWER ....... 4 million
Reinsurance agreements ...... ANSWER ....... enable an
insurance company the ceding company to transfer risk to
the reinsurer (seller)
Capital Stock companies are owned by ...... ANSWER
....... stock holders and most common
Main purpose of the stock company ...... ANSWER .......
make a profit for its investors
NC HEALTH INSURANCE (2025/2026) EXAM
PEARSON VUE WITH ALL COMPLETE QUESTIONS
AND DETAILED CORRECT ANSWERS (EXPERT
VERIFIED) FOR GUARANTEED PASS TOP-RATED
A+.
NC HEALTH INSURANCE
Ace your NC (North Carolina) Health Insurance (2025/2026) Exam –
Pearson VUE using this comprehensive resource. It includes updated
exam-style questions and key state-specific regulations aligning with
Pearson VUE testing standards for accurate practice.
Pure Risk ...... ANSWER ....... chance of loss or no loss
but not gain insurable
Speculative Risk ...... ANSWER ....... there is
possibility of loss but of gain no insurablility
exposure unit ...... ANSWER ....... subject to loss
peril ...... ANSWER ....... cause of loss
life insurance ...... ANSWER ....... death
,2|Page
Health insurance ...... ANSWER ....... accident and
sickness
hazard ...... ANSWER ....... increases the likelihood or
severity of loss
Three types of hazard ...... ANSWER ....... physical,
moral, morale
physical hazard ...... ANSWER ....... arise from the
inherent characteristic of the exposure unit
Moral Hazard ...... ANSWER ....... lifestyle of the
insured person
Morale hazard ...... ANSWER ....... arise more from an
outlook on life
risk avoidance ...... ANSWER ....... eliminating all risk
altogether
risk retention ...... ANSWER ....... manage risk
Deduction
,3|Page
self-insurance ...... ANSWER ....... instead of buying
health insurance and saving $ in the bank
Pure risk that are not insurable ...... ANSWER .......
Flood, War, Catastrophic losses
Intentional losses ...... ANSWER ....... not insurable
Adverse selection ...... ANSWER ....... bad for
insurance
insurance actuary ...... ANSWER ....... a specially
trained mathematician who calculates premiums
underwriter ...... ANSWER ....... checks out the medical
history of the proposed insured and other factors to
eliminate adverse selection against the insurance company,
issue policy premium restrictions
Days for applicant to requests an explanantion ......
ANSWER ....... 90 days
, 4|Page
Days insurance company must furnish an explanation ......
ANSWER ....... 21 days
A dispute must begin within in ...... ANSWER ....... 30
days
Law of Large numbers ...... ANSWER ....... the larger
the number the easier it is to predict losses
how much $ must a insurance company have in reserve at all
times ...... ANSWER ....... 4 million
Reinsurance agreements ...... ANSWER ....... enable an
insurance company the ceding company to transfer risk to
the reinsurer (seller)
Capital Stock companies are owned by ...... ANSWER
....... stock holders and most common
Main purpose of the stock company ...... ANSWER .......
make a profit for its investors
