1|Page
North Carolina Health Insurance License Test 2025
Preparation Test Bank With 200 Questions and
Correct Detailed Answers for Actual Exam Practice|
NC Health Insurance Exam Prep Test Bank (Latest)
Which of the following requires insurers to disclose when
an applicant's consumer or credit history is being
investigated: - ...ANSWER...✓✓ 1970 - Fair Credit
Reporting Act
What type of reinsurance contract involves two
companies automatically sharing their risk exposure? -
...ANSWER...✓✓ Treaty
What is the name of the law that requires insurers to
disclose information gathering practices and where the
information was obtained? - ...ANSWER...✓✓ Fair Credit
Reporting Act
Who elects the governing body of a mutual insurance
company? - ...ANSWER...✓✓ policyholders
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The stated amount or percent of liquid assets that an
insurer must have on hand that will satisfy future
obligations to its policyholders is called: - ...ANSWER...✓✓
reserves
A group-owned insurance company that is formed to
assume and spread the liability risks of its members is
known as a: - ...ANSWER...✓✓ risk retention group
What year was the McCarran-Ferguson Act enacted? -
...ANSWER...✓✓ 1945
Which of these describe a participating life insurance
policy? - ...ANSWER...✓✓ Policyowners are entitled to
receive dividends
At what point must a life insurance applicant be informed
of their rights that fall under the Fair Credit Reporting
Act? - ...ANSWER...✓✓ Upon completion of the application
A nonprofit incorporated society that does not have
capital stock and operates for the sole benefit of its
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members is known as: - ...ANSWER...✓✓ a fraternal
benefit society
An insurance applicant MUST be informed of an
investigation regarding his/her reputation and character
according to the: - ...ANSWER...✓✓ Fair Credit Reporting
Act
Which of the following consists of an offer, acceptance,
and consideration? - ...ANSWER...✓✓ Contract
Which of these is NOT a type of agent authority? -
...ANSWER...✓✓ Principal
E and F are business partners. Each takes out a $500,000
life insurance policy on the other, naming himself as
primary beneficiary. E and F eventually terminate their
business, and four months later E dies. Although E was
married with three children at the time of death, the
primary beneficiary is still F. However, an insurable
interest no longer exists. Where will the proceeds from
E's life insurance policy be directed to? - ...ANSWER...✓✓
F
North Carolina Health Insurance License Test 2025
Preparation Test Bank With 200 Questions and
Correct Detailed Answers for Actual Exam Practice|
NC Health Insurance Exam Prep Test Bank (Latest)
Which of the following requires insurers to disclose when
an applicant's consumer or credit history is being
investigated: - ...ANSWER...✓✓ 1970 - Fair Credit
Reporting Act
What type of reinsurance contract involves two
companies automatically sharing their risk exposure? -
...ANSWER...✓✓ Treaty
What is the name of the law that requires insurers to
disclose information gathering practices and where the
information was obtained? - ...ANSWER...✓✓ Fair Credit
Reporting Act
Who elects the governing body of a mutual insurance
company? - ...ANSWER...✓✓ policyholders
,2|Page
The stated amount or percent of liquid assets that an
insurer must have on hand that will satisfy future
obligations to its policyholders is called: - ...ANSWER...✓✓
reserves
A group-owned insurance company that is formed to
assume and spread the liability risks of its members is
known as a: - ...ANSWER...✓✓ risk retention group
What year was the McCarran-Ferguson Act enacted? -
...ANSWER...✓✓ 1945
Which of these describe a participating life insurance
policy? - ...ANSWER...✓✓ Policyowners are entitled to
receive dividends
At what point must a life insurance applicant be informed
of their rights that fall under the Fair Credit Reporting
Act? - ...ANSWER...✓✓ Upon completion of the application
A nonprofit incorporated society that does not have
capital stock and operates for the sole benefit of its
, 3|Page
members is known as: - ...ANSWER...✓✓ a fraternal
benefit society
An insurance applicant MUST be informed of an
investigation regarding his/her reputation and character
according to the: - ...ANSWER...✓✓ Fair Credit Reporting
Act
Which of the following consists of an offer, acceptance,
and consideration? - ...ANSWER...✓✓ Contract
Which of these is NOT a type of agent authority? -
...ANSWER...✓✓ Principal
E and F are business partners. Each takes out a $500,000
life insurance policy on the other, naming himself as
primary beneficiary. E and F eventually terminate their
business, and four months later E dies. Although E was
married with three children at the time of death, the
primary beneficiary is still F. However, an insurable
interest no longer exists. Where will the proceeds from
E's life insurance policy be directed to? - ...ANSWER...✓✓
F
