NORTH CAROLINA HEALTH INSURANCE
STATE EXAM PREP QUESTIONS AND ANSWERS
LATEST UPDATE 2026/2027
Insured Contingent Beneficiary - CORRECT ANSWER ✔✔- If the insured and primary
beneficiary are both killed in the same accident and it cannot be determined who died first,
where are the death proceeds to be directed under the uniform Simultaneous Death Act?
Reimbursement - CORRECT ANSWER ✔✔- Which type of policy pays benefits to a
policyholder covered under a Hospital Expense policy?
$25,000 - CORRECT ANSWER ✔✔- J has an Accidental Death and Dismemberment policy
with a principal sum of $50,000. While trimming the hedges, J cuts off one of his fingers. What
is the MAXIMUM J will receive from his policy?
payable to the company or another shareholder - CORRECT ANSWER ✔✔- The benefits under
a Disability Buy-Out policy are:
off-the -job accident - CORRECT ANSWER ✔✔- An accident policy will most likely pay a
benefit for a(n)
indemnity - CORRECT ANSWER ✔✔- a payment for damage or loss
continue group health benefits - CORRECT ANSWER ✔✔- The COBRA gives workers whose
employment has been terminated the right to
Social Security Disability Income - CORRECT ANSWER ✔✔- The percentage of as
individual's Primary Insurance Amount determines the benefits paid in which of the following
programs.
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, 100% of the insured's Primary Insurance Amount (PIA) - CORRECT ANSWER ✔✔- What is
the maximum Social Security Disability benefit amount an insured can receive?
PPO's are NOT a type of managed care system - CORRECT ANSWER ✔✔- Which of these
statements is INCORRECT regarding a PPO?
Part A covers hospitalization; Part B covers doctor's services - CORRECT ANSWER ✔✔- What
does Medicare Parts A and B cover?
PPO - CORRECT ANSWER ✔✔- Under what system do a group of doctors and hospitals in a
designated area contract with an insurer to provide services at a prearranged cost to the insured?
closed panel - CORRECT ANSWER ✔✔- The situation in which a group of physicians are
salaried employees and conduct business in an HMO facility is called a(n)
Her group health plan (if the employer has more than 20 employees, the group health plan
generally pays first) - CORRECT ANSWER ✔✔- A 66 year-old is covered under a group health
plan while employed with a business that has 40 employees. If she injures herself while walking
in the park, what coverage would be considered primary?
Commercial Insurers - CORRECT ANSWER ✔✔- Which of the following reimburses its
insureds for covered medical expenses?
If the employee paid for qualified medical expenses, the reimbursements may be tax-free -
CORRECT ANSWER ✔✔- Which of the following statements about Health Reimbursement
Arrangements (HRA) is CORRECT?
Restoration of used benefit - CORRECT ANSWER ✔✔- Which provision allows a portion of
any used medical benefits to be restored following a particular amount of benefit has been used,
or after the policy has been in effect for a particular period of time?
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STATE EXAM PREP QUESTIONS AND ANSWERS
LATEST UPDATE 2026/2027
Insured Contingent Beneficiary - CORRECT ANSWER ✔✔- If the insured and primary
beneficiary are both killed in the same accident and it cannot be determined who died first,
where are the death proceeds to be directed under the uniform Simultaneous Death Act?
Reimbursement - CORRECT ANSWER ✔✔- Which type of policy pays benefits to a
policyholder covered under a Hospital Expense policy?
$25,000 - CORRECT ANSWER ✔✔- J has an Accidental Death and Dismemberment policy
with a principal sum of $50,000. While trimming the hedges, J cuts off one of his fingers. What
is the MAXIMUM J will receive from his policy?
payable to the company or another shareholder - CORRECT ANSWER ✔✔- The benefits under
a Disability Buy-Out policy are:
off-the -job accident - CORRECT ANSWER ✔✔- An accident policy will most likely pay a
benefit for a(n)
indemnity - CORRECT ANSWER ✔✔- a payment for damage or loss
continue group health benefits - CORRECT ANSWER ✔✔- The COBRA gives workers whose
employment has been terminated the right to
Social Security Disability Income - CORRECT ANSWER ✔✔- The percentage of as
individual's Primary Insurance Amount determines the benefits paid in which of the following
programs.
1|Page
, 100% of the insured's Primary Insurance Amount (PIA) - CORRECT ANSWER ✔✔- What is
the maximum Social Security Disability benefit amount an insured can receive?
PPO's are NOT a type of managed care system - CORRECT ANSWER ✔✔- Which of these
statements is INCORRECT regarding a PPO?
Part A covers hospitalization; Part B covers doctor's services - CORRECT ANSWER ✔✔- What
does Medicare Parts A and B cover?
PPO - CORRECT ANSWER ✔✔- Under what system do a group of doctors and hospitals in a
designated area contract with an insurer to provide services at a prearranged cost to the insured?
closed panel - CORRECT ANSWER ✔✔- The situation in which a group of physicians are
salaried employees and conduct business in an HMO facility is called a(n)
Her group health plan (if the employer has more than 20 employees, the group health plan
generally pays first) - CORRECT ANSWER ✔✔- A 66 year-old is covered under a group health
plan while employed with a business that has 40 employees. If she injures herself while walking
in the park, what coverage would be considered primary?
Commercial Insurers - CORRECT ANSWER ✔✔- Which of the following reimburses its
insureds for covered medical expenses?
If the employee paid for qualified medical expenses, the reimbursements may be tax-free -
CORRECT ANSWER ✔✔- Which of the following statements about Health Reimbursement
Arrangements (HRA) is CORRECT?
Restoration of used benefit - CORRECT ANSWER ✔✔- Which provision allows a portion of
any used medical benefits to be restored following a particular amount of benefit has been used,
or after the policy has been in effect for a particular period of time?
2|Page
