Nc State Law - Health Exam

52 Questions | Total Attempts: 308

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North Carolina Quizzes & Trivia

NC State Law


Questions and Answers
  • 1. 
    Policyowners who buy a health insurance policy issued in North Carolina are entitled to review the policy without obligation for at least how many days after it is delivered?
    • A. 

      7

    • B. 

      10

    • C. 

      21

    • D. 

      31

  • 2. 
    Which of the following is not considered a health benefit plan?
    • A. 

      HMO contract

    • B. 

      Accident and health insurance certificate

    • C. 

      Multiple employer welfare arrangement plan

    • D. 

      Medicare supplement policy

  • 3. 
    Which of the following entities would not be considered a health insurer in North Carolina?
    • A. 

      A hospital service corporation

    • B. 

      A health maintenance organization

    • C. 

      A group health plan

    • D. 

      A reciprocal insurer

  • 4. 
    To boost her sales at the end of the year, Agent Trudy started offering potential clients a $250 cash gift card in exchange for purchasing a life insurance policy. Which ethical sales practice has Agent Trudy violated?
    • A. 

      Twisting

    • B. 

      False information

    • C. 

      Rebating

    • D. 

      Churning

  • 5. 
    Becky works as an agent for Delta Insurance Company, which is located in North Carolina. What must Becky do in order to sell life insurance on behalf of Delta to U.S. military personnel who are stationed in Germany?
    • A. 

      She must obtain a nonresident license.

    • B. 

      She must obtain a surplus lines agent's license.

    • C. 

      She must obtain a restricted license.

    • D. 

      Nothing, because she is already licensed as an agent.

  • 6. 
    Terry is licensed in North Carolina as a life and health insurance agent. To maintain his license, how many hours of continuing education must he complete every two years?
    • A. 

      12

    • B. 

      24

    • C. 

      30

    • D. 

      40

  • 7. 
    Abby lives in Maryland, where she is licensed as an insurance agent. She wants to apply for a nonresident license in North Carolina. Which of the following conditions must she satisfy?
    • A. 

      She must move to North Carolina.

    • B. 

      She must surrender her Maryland license.

    • C. 

      She must be sponsored by an agent licensed in North Carolina.

    • D. 

      She must show her license to be in good standing in Maryland.

  • 8. 
    An insurer must notify its current customers of its privacy policies or practices at least once every how often?
    • A. 

      6 months

    • B. 

      12 months

    • C. 

      18 months

    • D. 

      24 months

  • 9. 
    Harry is enrolled in a PPO and is currently seeing a health-care provider who does not participate in the plan. Which of the following statements is true?
    • A. 

      The PPO will deny all claims from the provider.

    • B. 

      The PPO will require Harry to pay higher copayments and deductibles if he sees a nonparticipating provider.

    • C. 

      The PPO will increase Harry's deductible if he sees a nonparticipating provider.

    • D. 

      The PPO may limit coverage if Harry receives health-care services from a nonparticipating provider.

  • 10. 
    Which of the following is not a power granted to the North Carolina Commissioner of Insurance?
    • A. 

      Examining insurers' financial statements

    • B. 

      Enforcing insurance laws

    • C. 

      Issuing regulations to administer insurance laws

    • D. 

      Prosecuting individuals for violating insurance laws

  • 11. 
    Larry, Brian, Susan, and Jennifer just started working for AllPro Insurance Company in North Carolina. Based on their job descriptions below, which of them is NOT acting as a producer?
    • A. 

      Larry, who receives insurance applications from the public

    • B. 

      Brian, who is a vice president in AllPro's human resources department and does not receive commissions

    • C. 

      Susan, who collects insurance premiums for AllPro

    • D. 

      Jennifer, who solicits insurance policies for AllPro and receives commissions

  • 12. 
    Which of the following is NOT an unfair claims settlement practice if committed by an insurance company in North Carolina?
    • A. 

      Failing to promptly acknowledge communications about claims

    • B. 

      Failing to promptly settle a claim for which liability is uncertain

    • C. 

      Offering to settle claims for less than due to encourage litigation

    • D. 

      Raising policy defenses to reduce a claim

  • 13. 
    When meeting with a prospect to discuss life insurance, Agent Tyler makes disparaging comments about the financial stability and reputation of a competitor to dissuade the prospect from purchasing its policies. Which unfair trade practice has Agent Tyler committed?
    • A. 

      Defamation

    • B. 

      Rebating

    • C. 

      Unfair discrimination

    • D. 

      Coercion

  • 14. 
    A franchise accident and health insurance policy may be issued to at least how many employees of a corporation?
    • A. 

      Two

    • B. 

      Three

    • C. 

      Five

    • D. 

      Ten

  • 15. 
    Acme Insurance and Apogee Insurance agree to offer different premium rates for persons of equal risk within a particular class. They also agree to limit benefits paid to insureds within this class if the insureds live in certain counties of North Carolina. What are Acme and Apogee engaging in?
    • A. 

      Acceptable marketing and underwriting practices

    • B. 

      Unfair and prohibited business practices

    • C. 

      Insurance fraud

    • D. 

      False advertising

  • 16. 
    Anthony is eligible for Medicaid and also eligible for coverage under his new employer's group health benefit plan. Which statement is correct?
    • A. 

      The employee benefit plan may limit his benefits because he is eligible for Medicaid.

    • B. 

      The employee benefit plan may deny him a policy.

    • C. 

      The employee benefit plan may not take into account the fact that Anthony is receiving Medicaid benefits when paying benefits.

    • D. 

      The employee benefit plan may require Anthony to pay a higher premium than other employees.

  • 17. 
    Which statement about the coverage of chemical dependency under a group health insurance policy is CORRECT?
    • A. 

      A group health insurance policy is required to cover treatment for chemical dependency.

    • B. 

      A group health insurance policy can provide different benefits for chemical dependency than for other illnesses.

    • C. 

      A group health insurance policy cannot set limits on the amount of benefits payable for chemical dependency.

    • D. 

      A group policyholder must have the option to purchase coverage for chemical dependency treatment.

  • 18. 
    Which type of limited policy will provide health insurance benefits when the insured or his dependents are hospitalized?
    • A. 

      Credit life and health policy

    • B. 

      Surplus lines policy

    • C. 

      Industrial health policy

    • D. 

      Hospitalization policy

  • 19. 
    Josephson Corporation will be offering a group health insurance policy this year to its employees. Which employee will not be eligible for coverage?
    • A. 

      Frank, who owns 50 percent of the company and works full-time

    • B. 

      Rachel, who works 30 hours per week in the accounting department

    • C. 

      Sebastian, who works part-time for the company during the fall and winter

    • D. 

      Anna, who is a vice president in the company and works 40 hours per week

  • 20. 
    Statewide Insurers wants to obtain an investigative consumer report about an applicant because of questions it has regarding the individual's credit history. What must Statewide do before it can obtain a report?
    • A. 

      Notify the applicant that he has the right to be interviewed in connection with the report

    • B. 

      Obtain the applicant's signed consent before obtaining the report

    • C. 

      Notify the applicant that he has the right to prepare his own report

    • D. 

      Require the applicant to sign an affidavit attesting to the truth of the statements in the report

  • 21. 
    A health insurance policy must pay benefits for services provided by all of the following EXCEPT:
    • A. 

      Optometrists

    • B. 

      Registered nurses

    • C. 

      Physician assistants

    • D. 

      Homeopathic practitioners

  • 22. 
    Emil, an agent licensed in North Carolina, moves to a new home on April 30. He is required to notify the North Carolina Department of Insurance by what date?
    • A. 

      May 7

    • B. 

      May 10

    • C. 

      May 30

    • D. 

      October 31

  • 23. 
    Delta Vacation Cruises wants to purchase group health coverage for its passengers. Which type of insurance should Delta purchase?
    • A. 

      Blanket policy

    • B. 

      Credit disability

    • C. 

      Illness only

    • D. 

      Accident and illness indemnity

  • 24. 
    Which of the following techniques is not used during the utilization review process?
    • A. 

      Second opinions

    • B. 

      Preventive care review

    • C. 

      Discharge planning

    • D. 

      Concurrent review

  • 25. 
    If a group health insurance policy terminates, an employee can elect to continue coverage provided he or she has been insured under the plan for how long before it terminates?
    • A. 

      3 months

    • B. 

      6 months

    • C. 

      9 months

    • D. 

      12 months