North Carolina Health Insurance Practice Exam Free - 2026

• A. Two years from the date of first use
• B. Three years, matching the rule for life insurance advertising
• C. Four years or until the filing of the next regular report on examination of the insurer, whichever is longer
• D. Indefinitely, because the file is a permanent record

Correct answer: C. Four years or until the filing of the next regular report on examination of the insurer, whichever is longer

Explanation: Each accident and health insurer must keep at its home or principal office a complete file of every printed, published, or prepared advertisement of its individual policies (and typical advertisements of blanket, franchise, and group policies), with a notation of the manner and extent of distribution and the policy form number, for four years or until the filing of the next regular report on examination, whichever is longer. Option A is too short. Option B confuses the three-year life insurance advertising rule with the four-year accident and health rule. Option D is wrong because the rule sets a definite minimum period, not a permanent obligation. See 11 NCAC 12 .0533.

• A. A photocopy of his prelicensing course certificate
• B. His National Producer Number together with the Department's website address and telephone number for verifying licensure status
• C. Only his business card, since licensure verification is the insurer's responsibility
• D. A notarized copy of his license

Correct answer: B. His National Producer Number together with the Department's website address and telephone number for verifying licensure status

Explanation: Under the ethical standards rule, every agent, limited representative, broker, adjuster, appraiser, or other insurer's representative dealing with a member of the public must identify himself or herself and his or her occupation and, when asked for proof of licensure by a claimant, repairer, Department representative, or any other person contacted in the course of insurance business, must provide his or her National Producer Number and the Department's website address and phone number so licensure can be verified. Options A and D describe documents the rule does not require. Option C is wrong because the duty falls on the individual representative, not the insurer. See 11 NCAC 04 .0423(a).

• A. Nothing happens, because North Carolina producer licenses are perpetual and never expire
• B. His license expires, but he has four months (120 days) from the compliance date to complete the hours and reinstate by paying a $75 fee; after that he must repeat prelicensing and the state exam
• C. He may request a 30-day extension at any time after the compliance date, even after the license expires
• D. He automatically receives a hardship waiver if he has been licensed at least 10 years

Correct answer: B. His license expires, but he has four months (120 days) from the compliance date to complete the hours and reinstate by paying a $75 fee; after that he must repeat prelicensing and the state exam

Explanation: North Carolina producer licenses do not have a renewal cycle, but a license still expires when the licensee fails to meet the minimum CE hours or the mandatory ethics (and, where applicable, flood) hours by the compliance date. The licensee then has four months (120 days) from the CE compliance date to complete the required hours and reinstate with a $75 reinstatement fee; if that window passes, the license becomes inactive and the person must complete prelicensing education and pass the state examination for each line of authority. Option A ignores the CE-based expiration. Option C is wrong because a 30-day extension must be requested no sooner than 30 days before and no later than the last day of the compliance period, not after expiration. Option D is wrong because waivers are available only for military service or long-term medical disability. See N.C.G.S. § 58-33-130(c); 11 NCAC 06A .0802(i) and .0807.

• A. 7 days
• B. 10 days
• C. 31 days
• D. 45 days

Correct answer: B. 10 days

Explanation: North Carolina's uniform grace period provision inserts a figure of not less than 7 days for weekly premium policies, 10 days for monthly premium policies, and 31 days for all others, with the policy continuing in force during the period. Seven days matches weekly-pay contracts and 31 days matches quarterly or annual ones, so neither fits a monthly premium policy. See N.C.G.S. 58-51-15(a)(3).

• A. A waiting period after policy issue before coverage for a preexisting condition begins
• B. A waiting period before benefits become payable after the insured qualifies for benefits
• C. A period during which the insurer may still contest statements made in the application
• D. A maximum period during which benefits are payable once a covered claim is approved

Correct answer: B. A waiting period before benefits become payable after the insured qualifies for benefits

Explanation: The elimination period in long-term care insurance is a waiting period before benefits are payable once the insured otherwise qualifies, depending on policy terms.

• A. Optionally renewable
• B. Conditionally renewable
• C. Noncancelable
• D. Cancelable at will

Correct answer: C. Noncancelable

Explanation: A noncancelable policy generally cannot be canceled by the insurer during the stated term as long as premiums are paid, and premiums usually cannot be changed for that policy alone.

• A. The right to refuse renewal at any anniversary if the insured's health has declined
• B. The right to raise an individual insured's premium based on claims experience
• C. The right to add exclusions for conditions that develop after the policy is issued
• D. The right to change premiums by class, subject to policy terms and law

Correct answer: D. The right to change premiums by class, subject to policy terms and law

Explanation: Guaranteed renewable coverage generally requires the insurer to renew the policy if premiums are paid, but premiums may be changed for a class of insureds under the policy terms.

• A. Choose not to renew on a policy anniversary or premium due date, subject to the contract
• B. Renew only if the insured has no claims
• C. Cancel during the grace period only
• D. Never increase premiums

Correct answer: A. Choose not to renew on a policy anniversary or premium due date, subject to the contract

Explanation: Optionally renewable policies give the insurer more discretion not to renew at specified times, subject to the policy language and applicable rules.

• A. To delay payment of benefits after a disability begins
• B. To delay coverage for certain illnesses after the policy starts
• C. To delay the insurer's right to contest the application
• D. To delay coverage for accidental injury once the policy starts

Correct answer: B. To delay coverage for certain illnesses after the policy starts

Explanation: A probationary period is a waiting period after policy issuance before coverage begins for certain sicknesses, helping the insurer avoid immediate claims for existing conditions.

• A. It limits the insured's ability to sue the insurer over a denied claim once a specified period has passed after proof of loss is filed
• B. It limits the time the insured has to give notice and file proof of loss before the insurer may deny the claim for late filing
• C. It limits the insurer's ability to deny claims based on misstatements after a specified period, except as allowed by the policy and law
• D. It allows the insurer to rescind the policy for any misstatement at any time, provided the misstatement was material to the risk

Correct answer: C. It limits the insurer's ability to deny claims based on misstatements after a specified period, except as allowed by the policy and law

Explanation: The time limit on certain defenses provision restricts how long an insurer may use certain application misstatements to deny claims, while still allowing exceptions such as fraud where permitted.

• A. How a policy may be renewed at each anniversary
• B. How a claim is paid after a policy has lapsed
• C. How overdue premiums are waived during disability
• D. How a lapsed policy may be put back in force

Correct answer: D. How a lapsed policy may be put back in force

Explanation: Reinstatement provisions explain the conditions under which a lapsed health policy may be restored, such as application, premium payment, and insurer approval rules.

• A. To let the insured pay a premium shortly after the due date while coverage may remain in force
• B. To let the insured return the policy shortly after delivery and receive a full premium refund
• C. To let the insurer delay paying a claim shortly after proof of loss while it investigates
• D. To let the insured skip a premium without owing it later while the policy stays in force

Correct answer: A. To let the insured pay a premium shortly after the due date while coverage may remain in force

Explanation: A grace period gives the policyowner limited extra time to pay a premium after its due date. Coverage handling depends on policy terms and applicable law.