Chapter 7
chemical dependency treatment under a group health policy MUST include (over the life of the contract) a minimum benefit of
$16,000
how long must every insurance agent maintain all records, books, and documents related to each insurance transaction
5 years
an insurance company formed under the laws of canada would be known in NC as
an alien company
in NC, an agent obtains a license from the
commissioner of insurance
what is one of the requirements for an applicant to become licensed as a NC accident and health insurance agent
complete at least 20 hours of instruction approved by the commissioner of insurance
the circulation of written literature that is maliciously critical of an insurer's financial condition is called
defamation
an insurance company formed under NC law is referred to as a
domestic company
the commissioner of insurance has notified an insurer that an individual health policy form does not comply with NC laws. the insurer may
not issue the form in connection with any new application
an accident/health policyholder has ___ days to return the policy and receive a full refund on premiums
10
how long is the free-look period for accident and health policies sold in NC
10 days
ABC insurance company fails to pay death proceeds after satisfactory proof of loss was submitted. ABC must then begin paying interest on the death proceeds after ___ days of receiving proof of loss
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 days
which of the following individuals MUST be licensed as an agent
a person who places insurance on behalf of anyone seeking insurance
in NC, 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
a borker's license must be renewed annually by
april 1st
the Life and Health Insurance Guaranty Association is funded by authorized insurers in the state. one of the roles of the organization is to
assist in the prevention of insurer insolvencies
T is employed by an amusement park from June through September, working 50 hours per week. the amusement park's group policy would
consider T NOT eligible for the insurance because as a seasonal employee, T does not meet the definition of employee under NC law
which of the following types of insurance is exempt from the rules governing life insurance and annuity replacements
credit life
Proceeds of the viatical settlement contract could be subject to the claims of
creditors
an example of an unfair claims practice would be
failing to effectuate prompt, fair, and equitable settlements of a claim
in NC, an insurer licensed to conduct business in NC, but domiciled in NJ, is called a
foreign company
who does an insurance broker in NC represent
insured
the PRIMARY purpose of the life insurance replacement regulation is to protect the
interests of policyowners
if a life insurance company becomes insolvent, the fund that guarantees policyowners payment of death benefits is known as the
life and health insurance guaranty association
the life and health insurance guaranty association in NC has regulations that apply ONLY to
life and health policies issued by companies authorized in NC
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
the commissioner of the insurance may suspend or revoke the license of an agent who takes any of the following actions EXCEPT
represents more than one insurance company
essential benefits without annual and lifetime limits are required on any health policy purchased
through the federal marketplace
an agent inducing an insured to lapse, forfeit, or surrender insurance through misrepresentation is committing the illegal act of
twisting
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
viatical settlement
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 company date of issue
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
an eligible employee has a maximum of ___ days after their first day of employment to be added to group health coverage
90
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 these actions is NOT considered an act of rebating
sharing commissions with other licensed and appointed agents
the commissioner may issue an annually renewable _____ valid for representing an insurer in a foreign country or on a US military base
restricted license
Z is an agent who violated the insurance information and privacy protection act. Z was then issued and served a statement of charges and notice of hearing by the commissioner of insurance. Z's hearing date must be at least __ days after service of charges
10 days
a group health policy's approved premium rate is guaranteed by the insurer for an initial period of at LEAST ___ months
12 months
minors in NC age __ and up can enter into life insurance contracts and have all the rights that come with ownership
15 years
what is the minimum age for an individual to be a licensed NC insurance agent
18
a terminated employee must have been covered for at LEAST ___ months under a group health insurance policy immediately prior to termination in order to be eligible for continuation of coverage
3 months