Chapter 5 - 6 - 7

An agent must complete ___ biennial education credit hours to maintain his/her license

24

In the event of a replacement, what MUST be given to the insurance applicant at the time of application

Notice regarding replacement

Which of these do NOT constitute policy delivery?

Policy issued with a rating

An agent who sells insurance policies for an unauthorized insurer in NC may be personally liable for

all claims from policies sold by the agent

An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the

applicant's physician

T is receiving $3,000/month from a Disability Income policy in which T's employer had paid the premiums. How are the $3,000 benefit payments taxable?

benefits are taxable to T

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

North Carolina insurance law specifically allows the Commissioner of Insurance to issue a temporary license to which of the following individuals

a surviving spouse of a deceased agent

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

Essential Benefits without annual and lifetime limits are required on any health policy purchased

through the Federal Marketplace

The policy provision that entitles the insurer to establish conditions the insured must meet while a claim is pending is

time limit on certain defenses

Which Accident and Health policy provision addresses preexisting conditions?

time limit on certain defenses

An agent completes an application with a client for a $50,000 Life Insurance policy. At what point is the LATEST a Policy Summary and buyers Guide must be given to the applicant

upon policy delivery

Which of the following BEST describes how pre-admission certificates are used

used to prevent nonessential medical costs

What type of rider would be added to an Accident and Health policy if the policyowner wants to ensure the policy will continue if he/she ever becomes totally disabled?

waiver of premium rider

How long must every insurance agent maintain all records, books, and documents related to each insurance transaction

5 years

Within _ years a life policy can be reinstated upon meeting company requirements

5 years

If an insurance applicant is being investigated into his/her personal character and mode of living, the applicant MUST be notified of this investigation. Which of the following makes this a requirement

Insurance Information and Privacy Protection Act

Which of these actions fall under NC's definition of rebating

discounting insurance premium by the agent

How does the Commissioner of Insurance attain office

elected by the people of NC to a 4 year term

A Resident agent who moves out of the State of NC has __ business days to notify the Commissioner of Insurance of the address change

10

A life insurance contract may NOT be voided by the insurance company beginning ___ years after the policy's issue date

2 years

An insured must notify an insurer of a medical claim within how many days after an accident?

20

ABC Insurance company fails to pay death proceeds after satisfactory proof of loss was submitted. ABC must begin paying interest on the death proceeds after __ days of receiving proof of loss

30

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

A disability income policyowner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was taken 5 years prior. The neck injury was never disclosed to the insurer at the time of application. How will the insurer handle this claim

claim will be paid and coverage will remain in force

What action should a producer take if the initial premium is NOT submitted with the application

forward the application to the insurer without the initial premium

Any vacancy of the Commissioner of Insurance position must be filled by a

governor appointment

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

Which type of renewability best describes a Disability Income policy that covers an individual until the age of 65, but the insurer has the right to change the premium rate?

guaranteed renewable

What is being delivered during a policy delivery

insurance contract to the proposed insured

Which of the following is NOT regulated by the Insurance Information and Privacy Protection Act

insurance regulators

What is the initial requirement for an insured to become eligible for benefits under the Waiver of Premium provision

insured must be under a physician's care

An insurance company normally has 2 years to contest information provided on an accident and health application. This 2 year period begins on the date that the

insurer dates the policy

The ____ clause identifies which losses resulting from an accident or sickness are insured by the policy

insuring

Which health policy clause specifies the amount of benefits to be paid

insuring

Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a disability income policy

issue the policy with an altered time of payment of claims provision

One role of the Life and Health Guaranty Association is to

maintain public confidence in the promises of insurers

Which type of plan normally includes hospice benefits

managed care plans

Which of the following BEST describes a short-term medical expense policy

nonrenewable

The Legal Actions, provision of an insurance contract is designed to do all of the following, EXCEPT

protect the producer

According to NC law, group life insurance conversion privileges must NOT

require evidence of insurability

Which of these terms accurately defines an underwriter's assessment of information on a health insurance application

risk classification

Which of the following is a requirement for obtaining a Resident agent license

submit a valid email address to the Commissioner