Free North Carolina Accident & Health practice questions

Answer: C. 24 ICECs, together with ethics coursework comprising 3 ICECs in that same period

Rule .0802(a) requires each holder of an accident and health or sickness license to obtain 24 ICECs in every biennial compliance period, and it requires an ethics course or courses comprising three ICECs in every biennial compliance period. Twelve ICECs understates the total the rule sets. Treating any approved courses as sufficient ignores the ethics course the rule names for each period. The flood insurance and National Flood Insurance Program course in Rule .0802(b) is required of holders of property, personal lines, or adjuster licenses, which this producer does not hold.

Answer: C. 18 years of age

G.S. 58-33-31(a)(1) lists, among the findings the Commissioner must make before approving a resident license application, that the individual is at least 18 years of age. The statute sets the minimum at 18, so 16, 19 and 21 each misstate the requirement.

Answer: B. At least once in every period of 12 consecutive months

G.S. 58-39-26(c) requires the privacy notice to be provided to a policyholder not less than annually while the policy continues, and defines annually as at least once in any 12 consecutive months while the policy is in effect. A single notice at delivery therefore does not satisfy the section, and the notice is owed whether or not the policyholder asks for it. The 24-month figure comes from the renewal exception for the separate notice of information practices in G.S. 58-39-25, not from this section. The stem rules out the annual-notice exception in G.S. 58-39-26(d), so the 12-month cycle applies.

Answer: A. Suspension or revocation of the producer's license or licenses for a period of one year

N.C. Gen. Stat. Sec. 58-2-195(c) grades violations of the Commissioner's recordkeeping and reporting rules. For a first offense the license may be suspended or revoked for not less than one month and not more than six months. For a second offense it is to be suspended or revoked for one year, and the person may not be relicensed for one year from the date the suspension or revocation first took effect. The one-to-six-month range is the first-offense sanction, and the statute provides neither a warning-only step nor permanent revocation for a second offense.

Answer: B. It owes only a refund, if she asks, of every premium paid for the uncovered period

G.S. 58-50-20 addresses this case directly: when the insured's age was misstated and, at the correct age, coverage would never have taken effect or would already have ended, the insurer's liability is limited to refunding, upon request, all premiums paid for the period the policy did not cover. Paying claims in full ignores that limit, keeping the premiums ignores the refund the section requires, and scaling benefits to the correct age is not the remedy this section provides when coverage would never have attached.

Answer: C. A mammogram every other year for ages 40 through 49, or more often on a physician's recommendation

North Carolina's mammography statute sets a coverage schedule by age: one baseline mammogram for a woman 35 through 39, a mammogram every other year for a woman 40 through 49 or more frequently when a physician recommends it, and a mammogram every year for a woman 50 or older. Separately, a woman at risk for breast cancer is entitled to one or more mammograms a year as a physician recommends. A 44-year-old without risk factors falls in the 40 through 49 band. Annual coverage by age alone begins at 50, the single baseline belongs to the 35 through 39 band, and the age-based coverage does not depend on being at risk.

Answer: A. A term barring cancellation during the binder period except on 10 days' written notice to the mortgagee

Under N.C. Gen. Stat. Sec. 58-3-140, a lender making or servicing mortgage loans on one to four family residences need not accept a binder unless it includes, among other items, a provision that it may be canceled within its term only on 10 days' written notice to the mortgagee. A 30-day notice period is not the figure the statute sets. The premium receipt the statute calls for covers one year, not six months, and it is not required on a renewal after the loan has closed. Instead of a certification that the policy has been issued, the statute calls for the producer's undertaking to use best efforts to have the insurer issue a policy.

Answer: D. Unfair discrimination between individuals of the same class and hazard

G.S. 58-63-15(7)b. defines as unfair discrimination any unfair difference, between people of the same class and of essentially the same hazard, in the premium, policy fees, or rates charged for an accident or health policy, in the benefits it pays, or in its terms and conditions. Paying one applicant smaller benefits under the same form, with nothing in the risk to justify it, fits that definition. Rebating under G.S. 58-63-15(8) concerns giving an inducement, such as a premium rebate, that the contract does not specify, and nothing is being given to either applicant here. Twisting under G.S. 58-33-75 is a misleading statement or comparison made to induce a policyholder to terminate or exchange a policy, and defamation under G.S. 58-63-15(3) concerns false or malicious statements about an insurer's financial condition.

Answer: C. Pat dropped continuation after 10 months, and the employer kept the same insurer throughout.

Under N.C. Gen. Stat. Sec. 58-53-50, a converted policy is unavailable to an employee who did not keep the insurance in force for the entire 18-month maximum continuation period, with one exception: the failure to continue came from the employer changing insurers, with the change made within the first year of continuation. Dropping continuation at 10 months while the employer kept the same insurer fits the restriction. Paying up to 102 percent of the full group rate is what G.S. 58-53-30 allows for continuation, and it is not a ground this section lists for refusing conversion. Keeping continuation for the full 18 months satisfies the requirement rather than breaking it. The same section also withholds conversion from someone who was not continuously covered for three consecutive months before employment ended, and two years of group coverage clears that easily.

Answer: A. Class H felony

Under N.C. Gen. Stat. Sec. 14-100(a), knowingly obtaining or attempting to obtain money, property, services or another thing of value by a false pretense, with intent to cheat or defraud, is a felony graded by value. A value of $100,000 or more makes it a Class C felony, and a value below $100,000 makes it a Class H felony, so $40,000 in services is Class H. Class C applies only at or above the $100,000 threshold. The statute treats the offense as a felony at every value, so a misdemeanor grade is wrong, and Class I is not a grade this section assigns.