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Xcel Solutions. North Carolina Life and Health State - Exam Simulator 1 (Part I) Questions with Solutions
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Xcel Solutions. North Carolina Life and Health State - Exam Simulator 1 (Part I)
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Xcel Solutions. North Carolina Life andHealth State - Exam Simulator 1 (Part I)
P is blinded in an industrial accident. Which provision of his life insurance policy will pay
a stated benefit amount? - answer Accidental Death and Dismemberment clause
An AD&D clause provides benefits for death due to an accident or for the loss of one or
more hands, feet, arms, legs, or loss of sight.
XYZ insurance Company would like to begin conducting business in NC. Before XYZ
can issues or deliver a Health policy, the form, classifications of risks, and premium
rates MUST be filed with the - answer Commissioner of Insurance
Before an insurance policy is issued or delivered, the form, classification of risks, and
premium rates must be filed with the Commissioner of Insurance.
Chemical dependency treatment under a Group Health policy MUST include (over the
life of the contract) a minimum benefit of - answer$16,000
Every Group Health Policy providing benefits for chemical dependency treatments must
include a minimum benefit of $16,000 for the life of the contract.
What is one of the requirements for an applicant to become licensed as a North
Carolina accident and health insurance agent? - answerComplete at least 20 hours of
instruction approved by the Commissioner of Insurance.
All individual applicants for licensing as agents shall furnish evidence to the
Commissioner of successful completion of at least 20 hours of instruction for each
license.
Under a Basic Medical Expense policy, what does the hospitalization expense portion
cover? - answerhospital room and board.
The hospitalization expense of a Basic Medical Expense policy pays for hospital room
and board.
What is the maximum Social Security Disability benefit amount an insured can receive?
- answer100% of the insured's Primary Insurance Amount (PIA).
The MAXIMUM Social Security Disability benefit an insured may receive is equal to
100% of the insured's Primary Insurance Amount (PIA).
,Rick recently died and left behind an individual IRA account in his name. His widow was
forwarded the balance of the IRA. The widow qualifies for the: - answermarital
deduction.
The transfer of a decedent's IRA account balance to a surviving spouse qualifies for the
Unlimited Marital Deduction, which generally exempts the transfer from estate taxes.
A Life insurance policyowner would like to take out a policy loan against the cash value
in his Whole Life policy. The interest rate applied to this loan may vary over time. This is
referred to as a(n) ________ rate loan. - answerVariable.
The interest rate on a Variable rate cash value loan may vary over time.
Agent J takes an application and initial premium from an applicant and sends the
application and premium check to the insurance company. The insurance company
returns the check back to J because the check is made out to J instead of the insurance
company. What action should J take? - answerReturn to the customer, collect a new
check made out to the insurance company, and send the new check out to the
insurance company.
An agent gives a conditional receipt to a client for an insurance policy after collecting
the initial premium. When will the policy become effective? - answerWhen the
conditions of the receipt are met.
A conditional receipt indicates that certain conditions must be met in order for the
insurance coverage to go into effect.
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 - answerwithin 2 years from the date of issue.
In this situation, the insurance company must contest the policy within 2 years from the
date of issue.
How does a typical Variable Life Policy investment account grow? - answerThrough
mutual funds, stocks, bonds.
A Variable Life Policy has investment values based instruments such as mutual funds,
stocks, and bonds.
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) - answerViatical Settlement.
, A written agreement to provide a Life Insurance Policy holder immediate cash in
exchange for the sale and transfer of a Life Insurance Policy is a Viatical Settlement.
Which of the following statements BEST describes dental care indemnity coverage? -
answerServices are reimbursed after insurer receives the invoice.
Dental care indemnity plans reimburse services only after the carrier receives the bill.
K has an Accidental Death and Dismemberment (AD&D) insurance policy where her
husband is beneficiary and her daughter is contingent beneficiary. Under the Common
Disaster clause, if K and her husband are both killed in an automobile accident, where
would the death proceeds be directed? - answerDaughter.
With a common disaster provision, a policyowner can be sure that if both the insured
and the primary beneficiary die within a short period of time, the death benefits will be
paid to the contingent beneficiary.
Comprehensive Major Medical policies usually combine: - answerMajor Medical with
Basic Hospital/Surgical coverage.
A Comprehensive Major Medical Policy combines Basic Hospital/Surgical and Major
Medical insurance.
The Accelerated Death Benefit provision in a life insurance policy is also known as a(n):
- answerLiving Benefit.
The Accelerated Death Benefit provision in a life insurance policy is also known as a
"Living Benefit".
An individual working part-time has an annual income of $25,000. If this individual has
an IRA, what is the maximum deductible IRA contribution allowable? - answer$2,500.
In this situation, the maximum allowable IRA contribution is $2,500.
All of these statements about the Waiver of Premium provision are correct, EXCEPT: -
answerInsured must be eligible for Social Security disability for claim to be accepted.
Receiving Social Security disability benefits is not a requirement to be eligible for the
Waiver of Premium.
Which type of life insurance beneficiary requires his/her consent when a change of
beneficiary is attempted by the policyowner? - answerIrrevocable beneficiary.
An irrevocable designation may not be changed without the written consent of the
beneficiary.
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