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
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
Essential Benefits without annual and lifetime limits are required on any health policy purchased
through the Federal Marketplace
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
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
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
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
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
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
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 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
An insured must notify an insurer of a medical claim within how many days after an accident?
20
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
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
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