North Carolina life and health practice exam

1. What is the minimum age to be licensed as an insurance producer in North Carolina?

1. 16
2. 18
3. 19
4. 21

2. Which statement about prelicensing education for a North Carolina producer license is correct?

1. The Commissioner may not require any specific amount of instruction or course
2. A 40-hour course is required for each line
3. A 20-hour course is required for life insurance only
4. College credit in insurance is required

3. A North Carolina temporary producer license may be issued for a period of:

1. Not more than 2 years
2. Not more than 30 days
3. Not more than 1 year
4. Not more than 180 days, or longer for good cause

4. A North Carolina producer must report an administrative action taken against them within:

1. 10 days after the action begins
2. The next license renewal
3. 60 days after the final disposition
4. 30 days after the final disposition

5. A North Carolina producer facing a criminal prosecution must report it within:

1. 10 days after arrest
2. 30 days after the initial pretrial hearing date
3. The next license renewal
4. 60 days after a conviction

6. Under North Carolina law, the biennial continuing education requirement set by the Commissioner may not exceed:

1. 24 credit hours
2. 40 credit hours
3. 16 credit hours
4. 30 credit hours

7. If a North Carolina licensee fails to meet the CE requirement, instead of letting the license lapse, the Commissioner may grant an extension or charge an administrative fee of:

1. $25
2. $500
3. $75
4. $150

8. Under North Carolina's general civil penalty statute, the Commissioner may impose a penalty per violation of:

1. Not less than $100 and not more than $1,000, with each day of a violation counted separately
2. Not more than $25,000
3. Not more than $5,000
4. Not less than $500 and not more than $10,000

1. North Carolina requires an individual life insurance policy to provide a grace period for premiums after the first of:

1. 30 days
2. 60 days
3. 28 days
4. 31 days

2. In North Carolina, an individual life policy may not be contested, except for nonpayment of premium, once it has been in force for:

1. 5 years after its date of issue
2. 2 years after its date of issue
3. 1 year after its date of issue
4. 3 years after its date of issue

3. A North Carolina individual life policy may not limit benefits because of suicide for more than how long after the date of issue?

1. 1 year
2. 6 months
3. 2 years
4. 3 years

4. In North Carolina, an individual life policy that has not been surrendered for cash must allow reinstatement within how long after the date of premium default?

1. 3 years
2. 5 years
3. 2 years
4. 1 year

5. North Carolina requires an equitable adjustment of premiums or benefits on an individual life policy if the insured's what has been misstated?

1. Age or gender
2. Occupation
3. Smoking status
4. Income

6. According to the North Carolina Department of Insurance, a new life insurance policy must have a minimum free look period of:

1. 30 days
2. 14 days
3. 10 days
4. 20 days

1. According to the North Carolina Department of Insurance, a replacement life policy must have a minimum free look period of:

1. 10 days
2. 30 days
3. 45 days
4. 20 days

1. In North Carolina, the holder of an individual accident and health policy may return it for a premium refund within:

1. 45 days of receiving it
2. 30 days of receiving it
3. 20 days of receiving it
4. 10 days of receiving it

1. The North Carolina Life and Health Insurance Guaranty Association covers all benefits on one life, including cash values, up to:

1. $250,000
2. $300,000
3. $500,000
4. $100,000

2. The North Carolina guaranty association covers health benefit plans up to:

1. $500,000
2. $300,000
3. $250,000
4. $100,000