North Carolina Laws and Rules Insurance
Chemical dependency treatment under a group health policy MUST include (over the life of the contract) a minimum benefit of
$16,000
If a licensee or person willingly misstates information on any financial document or statement, the entity in which they represent is subject to a fine between:
$2,000-$10,000
An Accident/Health policyholder has ___ days to return the policy and receive a full refund on premiums
10
A group health policy's approved premium rate is guaranteed by the insurer for an initial period of at LEAST __ months
12
An insurance applicant was recently denied insurance coverage. The applicant is requesting access from the insurer to recorded personal information regarding this decision. Under the Information and Privacy Protection Act, the insurer MUST make the information available within ___ business days
30
Before an insurer can increase the rates for individual accident and health policyowners, the insurer must provide written notice at least ___ days before the effective rate increase
30
In North Carolina, which of the following MUST be delivered to a policyowner upon the sale of an individual life insurance policy
A policy summary and buyer's guide
Which of these circumstances REQUIRE an insurer to clearly specify questions designed to obtain information solely for marketing research?
Any insurance transaction
What is one of the requirements for an applicant to become licensed as a North Carolina accident and health insurance agent?
Complete at least 20 hours of instruction approved by the commissioner of insurance
How is the Life and Health Insurance Guaranty Associated funded?
From member companies
If the commissioner of insurance is no longer able to complete the term of office, who is REQUIRED to fill this vacancy?
Governor
Which of the following MUST be included with the continuation of coverage of a group Hospital, Surgical, and Major Medical Policy?
Hospital Expenses
Which of the following statements is CORRECT about a domestic insurance company in North Carolina?
It must be organized under North Carolina insurance laws
The Life and Health Insurance Guaranty Association in North Carolina has regulations that apply ONLY to
Life and health policies issued by companies authorized in North Carolina
The commissioner of Insurance has notified an insurer that an Individual Health Policy form does not comply with North Carolina laws. The insurer may
Not issue the form in connection with any new application
A certificate of authority does which of the following?
Permits an insurance company to transact business in North Carolina
An applicant may NOT be refused insurance coverage due to
Race
When an existing life insurance policy is terminated so that a new life insurance policy can be purchased, this transaction is referred to as
Replacement
Which of these actions is NOT considered an act of rebating?
Sharing commissions with other licensed and appointed agents
Which of the following is an effort to influence a person to buy an insurance product from you?
Soliciting
Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are prohibited under the North Carolina insurance laws covering
Unfair trade practices
S is a life insurance policyowner and enters into a written agreement to receive immediate cash in exchange for the sale and transfer of her life insurance policy. This agreement is referred to as a(n)
Viatical Settlement
life insurance and annuity replacements define replacement as
exchanging an existing policy for a new policy
If a blank insurance contract application is signed by an agent, the agent
is guilty of a misdemeanor
A health insurance policy applicant unintentionally fails to list a previous visit to a neurologist. If the policy is issued and the insurer later decides to contest the policy, it must do so
within 2 years from the date of issue
Under the North Carolina insurance code, an insurance company must pay death benefits for suicide if the policy has been in force for a minimum of
2 years
A ___ includes any corporation, association, partnership, society, order, individual or aggregation of individuals engaging or attempting to engage in the insurance business
A company
An insured MUST submit a proof of loss on a health insurance claim within how many days after the date of loss?
180
Insurance agent licenses normally must be renewed every
2 years
The Life and Health Insurance Guaranty Association is funded by authorized insurers in this state. One of the roles of this organization is to
Assist in the prevention of insurer insolvencies
The circulation of written literature that is maliciously critical of an insurer's financial condition is called
Defamation
Which of the following is NOT an unfair method of competition or deceptive practice?
Demonstrating that a policy has higher benefits by using a comparison
A terminated employee must have been covered for at LEAST ___ month(s) under a group health insurance policy immediately prior to termination in order to be eligible for continuation of coverage
3
North Carolina requires that an insurance agent must complete ___ hours of continuing education of the subject of law and ethics every two years
3
How long must every insurance agent maintain all records, books, and documents related to each insurance transaction?
5 years
If a health insurance claim is not promptly paid, legal action may be taken against the insurer after
60 days from the date proof of loss is furnished
If an agent is found to be incompetent, untrustworthy, or financially irresponsible, the Commissioner may
Suspend, revoke, or refuse to renew the agent's license
