Health Insurance - Nc

89 Questions | Total Attempts: 462

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Health Insurance Quizzes & Trivia

Health Practice Exam 1


Questions and Answers
  • 1. 
    If the Commissioner issues a Notice of Seizure for documents and the individual fails to send those documents what is the penalty?
    • A. 

      1 year in jail

    • B. 

      $1,000 fine

    • C. 

      1 year in jail and/or $1,000 fine

    • D. 

      Each state handles discipline in its own way

  • 2. 
    A disability income policy covers injuries suffered by an insured on or off the job is called?
    • A. 

      An occupational policy

    • B. 

      A non-occupational policy

    • C. 

      A wraparound policy

    • D. 

      Twenty-four-hour policy

  • 3. 
    According to the code, all insurers must maintain a department to investigate:
    • A. 

      Possible abuses of rating laws

    • B. 

      Possible arson

    • C. 

      Possible fraudulent claims from insureds

    • D. 

      Possible fraud by insurers

  • 4. 
    Which two are Activities of Daily Living?
    • A. 

      Eating and dressing

    • B. 

      Speaking and Incontinence

    • C. 

      Sleeping and walking

    • D. 

      Bathing and hearing

  • 5. 
    What does the Insurance Commissioner have the right to do if an agent lacks authority from an insurer named on a binder for coverage ?
    • A. 

      Request his certificate of authority

    • B. 

      Authorize agent with a certificate of convenience

    • C. 

      Suspend or revoke the license of the agent

    • D. 

      Fine the insurance company

  • 6. 
    The likelihood of incurring disease or disability at any given time is:
    • A. 

      Risk

    • B. 

      Morbidity

    • C. 

      Mortality

    • D. 

      Hazard

  • 7. 
    Twelve months ago, a man slipped and fell down a flight of stairs at his workplace.  As a result he has a paralysis for which he is not expected to recover.  This 46 year old person will probably be able to collect disability income benefits from:
    • A. 

      Medicare

    • B. 

      Workers Compensation

    • C. 

      Medicaid

    • D. 

      Social security

  • 8. 
    What happens to a license after the death of a natural person who holds a valid insurance license?
    • A. 

      It always terminates

    • B. 

      It may be transferred to another person

    • C. 

      The license becomes inactive until the expiration date

    • D. 

      The license must be returned to the Commisioner to cancel the license

  • 9. 
    If the financial loss on a certain group of people occurring over a certain period of time defines the pricing of a disability policy, it is the pricing principle known as:
    • A. 

      Rapidity

    • B. 

      Security

    • C. 

      Risk

    • D. 

      Frequency

  • 10. 
    Which of the following are common insurance policy provisions?
    • A. 

      Reinstatement, suicide, pre-existing conditions

    • B. 

      Entire contract, grace period, reinstatement

    • C. 

      Entire contract, incontestability, pre-existing conditions

    • D. 

      Grace period, suicide right to return

  • 11. 
    With the cost of living rider, the life insurance policy holder:
    • A. 

      Must increase or decrease the face value of the policy as the index increases or decreases

    • B. 

      Gets the automatic increase in the face value if there is an increase in the cost of living index. There is an additional premium for the additional coverage

    • C. 

      Gets the automatic increase in the face value if the index goes up. There is no charge except for the flat charge for the rider

    • D. 

      All of the above are flase

  • 12. 
    Which of the following is not a standard level of care for a LTC policy ?
    • A. 

      Intermediate care

    • B. 

      Custodial care

    • C. 

      Skilled nursing care

    • D. 

      Convalescent care

  • 13. 
    Which of the following (recall) provisions of a disability contract is likely to change the contract least and cost the most ?
    • A. 

      Continuous indemnity contract

    • B. 

      Non-cancelable contract

    • C. 

      Guaranteed renewable contract

    • D. 

      Expense arrangement contract

  • 14. 
    The policy provision which prevents an insurer from voiding a policy for misstatements after 2 years is:
    • A. 

      Incontestability

    • B. 

      Indemnity

    • C. 

      Misrepresentation

    • D. 

      There is no such provision

  • 15. 
    Under a disability insurance policy, an insured is eligible for a waiver of premium benefit:
    • A. 

      Under the age 65

    • B. 

      After the first six months of disability

    • C. 

      During maternity leave

    • D. 

      During delayed retirement

  • 16. 
    Which of the following applies to the social insurance program known as social security ?
    • A. 

      Contributions are compulsory for most workers

    • B. 

      Benefits are based upon a contract with the insured

    • C. 

      Benefits are paid to each individual matching their contributions

    • D. 

      All insured workers begin to receive benefits at age 65

  • 17. 
    Any person who diverts or misappropriates fiduciary funds is guilty of:
    • A. 

      Misrepresentation

    • B. 

      Forgery

    • C. 

      Fraud

    • D. 

      Theft

  • 18. 
    A probationary period in a group health poliy is intended for people:
    • A. 

      Who decline to join the group during the eligibility period

    • B. 

      With other coverage after a qualifying event

    • C. 

      With a pre-existing condition when they joined the group

    • D. 

      Who joined the group after the effective date

  • 19. 
    An insurer owned by policyholders is:
    • A. 

      Fraternal insurer

    • B. 

      Capital stock insurer

    • C. 

      Mutual insurer

    • D. 

      Reciprocal exchange

  • 20. 
    Physicians and surgeons services, whether provided in a hospital, or elsewhere:
    • A. 

      Are covered by Medicare Part B. There is a charge for the coverage

    • B. 

      Are covered by Medicare Part A. There is no charge for the coverage

    • C. 

      Are covered by Medicare Part A. There is a charge for the coverage

    • D. 

      Are covered by Medicare Part B. There is no charge for the coverage

  • 21. 
    The Federal Act that is designed to protect group plan participants, establish pension equality, and mandates strict reporting and disclosure requirements is:
    • A. 

      COBRA

    • B. 

      DEFRA

    • C. 

      TEFRA

    • D. 

      ERISA

  • 22. 
    FYI Company's employee is injured while driving in the employ of the company.  Coverage for the employee comes from:
    • A. 

      Employee's auto medical payments

    • B. 

      FYI's Workers Compensation

    • C. 

      FYI's Genral Liability

    • D. 

      The employee's health policy

  • 23. 
    An individual might purchase LTC protection out of concern for all the following, except:
    • A. 

      Ineligibility for Medigap coverage

    • B. 

      Inevitable cost of health care

    • C. 

      Increasing probability of needed services

    • D. 

      Existing medical coverage

  • 24. 
    How is the Insurance Commissioner selected ?
    • A. 

      An annual meeting of insurance professionals in the state

    • B. 

      Appointed by the governor

    • C. 

      A group of qualified applicants voted on by the legislature

    • D. 

      An election by the people

  • 25. 
    A policy is returned to the insurer within 10 days of the date the policy is delivered.  How much of the premium is returned to the applicant ?
    • A. 

      None

    • B. 

      50%

    • C. 

      80%

    • D. 

      100%

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