Chapter 7 Life Flashcards Preview

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Flashcards in Chapter 7 Life Deck (40):

AT LEAST how many days before the effective date of a rate increase must an insurer provide written notice to individual accident and health policyowners?



Every insurance agent/broker MUST maintain all records, books, and documents for insurance transactions for a period of not less than

5 years


An agent who signs a blank contract application or policy of insurance

is guilty of a misdemeanor


If an insurer has been notified by the Commissioner of Insurance that an individual Health Policy form does not comply with the state's laws, the insurer may

not issue the form in connection with any new application


Insurers organized under the laws of North Carolina are called

domestic companies


The Insurance Information and Privacy Protection Act is designed to limit or direct the information collection activities of all of the following EXCEPT

agents and limited representatives

insurance support organizations

insurance regulators

insurance companies

insurance regulators


Which of the following requires that an applicant for an individual Health Policy be notified of an investigation into his personal character, general reputation, and mode of living?

Consumer Protection Agency

Fair Labor Standards Board

Insurance Information and Privacy Protection Act

Civil Rights Act

Insurance Information and Privacy Protection Act


An insurance company MUST clearly specify questions designed to obtain information solely for marketing research

in any insurance transaction


When L applies for a Health Insurance Policy, L unintentionally fails to list a previous visit to a cardiologist. If the insurance company contests the policy, it MUST do so within 2 years

from the date of issue


The policyholder has how many days to return an Accident/Health Insurance Policy and receive a full refund on premiums?



An insurance broker in North Carolina is a representative of the



Continuation of coverage of a group Hospital, Surgical, and Major Medical Policy MUST include

hospital expenses


Every Group Health Policy providing benefits for chemical dependency treatments must include, for the life of the contract, a

minimum benefit of $16,000


An agent who sells an individual life insurance policy in North Carolina MUST deliver to the policyowner

A Policy Summary and Buyer's Guide


According to the Information and Privacy Protection Act, when access to recorded personal information is requested following an adverse underwriting decision, the insurer must make the information available within how many business days?



Inducing or attempting to induce any insured person through misrepresentation to lapse, forfeit, or surrender insurance is



All of the following actions are considered rebating EXCEPT

sharing commissions with other licensed and appointed agents

refunding part of the premium as an inducement for purchase

offering special dividends

offering anything of value not specified in the policy

sharing commissions with other licensed and appointed agents


If a company accepts a renewal premium payment that would extend coverage beyond the policy's MAXIMUM age limit, the company

must continue the coverage to the end of the period of time for which the premium was accepted


Approved premium rates for group health insurance shall be guaranteed by the insurer for an initial period of not LESS than how many months?



One of the stated purposes of the Life and Health Insurance Guaranty Association is to

assist in the prevention of insurer insolvencies


The funds used by the Life and Health Insurance Guaranty Association to carry out its purpose are obtained from the

member companies


K works for XYZ Clothing Store from September through December each year. K works 45 hours a week for this period of time. The employer's Group Policy would consider K

not eligible for the insurance because as a seasonal employee K does not meet the definition of "employee" under North Carolina law


Before a Health Policy is issued or delivered, the form, classification or risks, and premium rates MUST be filed with the

Commissioner of Insurance


A vacancy that occurs during the North Carolina Commissioner of Insurance's term of office MUST be filled by the



If after satisfactory proof of loss, an insurer fails or refuses to pay death proceeds, the insurer must pay interest on the proceeds after how many days?



Under a Group Health Insurance Policy, continuation shall be available only to an employee who has been insured immediately prior to the date of termination for a period of AT LEAST

3 months


An agent that has been or is engaged in conduct that violates the Insurance Information and Privacy Protection Act shall be issued and served a statement of charges and notice of hearing by the Commissioner of Insurance. The date of such hearing shall be AT LEAST how many days after service of charges?

10 days


Eligible employees must be added to group health coverage NO LATER than how many days after their first day of employment?



The fund that assures policyholders payment of death benefits on Life Policies, if the company is insolvent at the time of the claim, is called the

Life and Health Insurance Guaranty Association


The rules and regulations of the Life and Health Insurance Guaranty Association in North Carolina apply to

Life and Health Policies issued by companies authorized in North Carolina


No insurer shall refuse to insure an individual because of



Circulation of any oral or written statement or any pamphlet, circular, article, or literature that is false or maliciously critical of or derogatory to the financial condition of an insurer is known as



To be licensed as an accident and health insurance agent in North Carolina, the applicant MUST

be at least 21 years of age and a resident of North Carolina

successfully pass an examination given by the National Association of Securities Dealers

have successfully completed at least 20 hours of instruction approved by the Commissioner of Insurance

must be a member of the National Association of Financial Advisors

have successfully completed at least 20 hours of instruction approved by the Commissioner of Insurance


Which of the following terms is defined as any transaction in which new life insurance or a new annuity is to be purchased and existing life insurance or annuity is to be terminated or discontinued?







A person is required to be AT LEAST how old before he or she is licensed as an agent in North Carolina?



If the Commissioner of insurance finds that a licensed person has used fraudulent, coercive, or dishonest practices or has proved to be incompetent, untrustworthy, or financially irresponsible, the law allows the Commissioner to

suspend, revoke, or refuse to renew the agent's license


Insurance agents MUST obtain a license from North Carolina's

Commissioner of Insurance


The following acts are examples of unfair methods of competition and deceptive practices in the business of insurance EXCEPT the use of

misrepresentations and false advertising of policy contracts

false financial statements

comparisons showing that a policy has higher benefits


comparisons showing that a policy has higher benefits


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


Companies in North Carolina may transact solicitations for insurance ONLY through

licensed agents