Accident and Health or Sickness Agent — Information & Free Practice
US-NC · Examination information
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Accident and Health or Sickness Agent
- Provider
- Pearson VUE
- Format
- Four-option multiple-choice examination
- Exam questions
- 55 scored questions plus up to 5 unscored pretest questions
- Time limit
- 1 hour, 15 minutes
- Passing score
- 70 on a scaled 0–100 scale
- Exam fee
- $45 per examination attempt
Examination outline
I. ACCIDENT & HEALTH INSURANCE POLICIES
- A. Disability income insurance
- 1. Nature and purpose
- 2. Insuring agreement / clause and perils covered
- 3. Definition of total disability
- a. Own occupation
- b. Any occupation for which the insured is reasonably suited
- c. Any occupation
- d. Combination definitions (own occupation/any occupation)
- e. Presumptive disability
- 4. Partial disability
- 5. Residual disability
- 6. Recurrent disability
- 7. Elimination (waiting) period
- 8. Probationary period
- 9. Length of coverage (benefit period)
- a. Short term vs. long term
- b. Accident vs. sickness
- 10. Nonoccupational vs. full coverage
- 11. Common exclusions
- 12. Other benefit features or options
- a. Cost of living adjustment
- b. Guaranteed insurability option
- c. Accidental death and dismemberment
- d. Accidental bodily injury vs. accidental means
- 13. Disability benefits in life insurance contracts
- B. Basic Medical Expense insurance
- 1. Nature and purpose
- 2. Insuring agreement and perils covered
- 3. Hospitalization expense
- 4. Surgical expense
- 5. Other physicians’ charges (regular medical expense)
- 6. Common exclusions
- C. Major Medical insurance
- 1. Nature and purpose
- 2. Covered charges (expenses)
- 3. Inside (internal) limits
- 4. Common exclusions
- 5. Deductible
- a. Per injury or sickness vs. cumulative (e.g., annual)
- b. Common accident/common sickness
- c. Family maximum
- 6. Percentage participation (coinsurance)
- a. Nature and purpose
- b. Stop loss feature
- 7. Benefit period
- 8. Maximum limits
- a. Per injury or illness vs. lifetime
- b. Unlimited
- 9. Pre-admission certification
- 10. Carryover provisions
- 11. Other benefit features, options, or expenses covered
- a. Maternity
- b. Dental
- c. Prescription drug
- d. Vision
- e. Dread disease and limited coverage
- f. Outpatient treatment
- 12. Key features of the Affordable Care Act (ACA)
- a. Preventive care
- b. Unlimited lifetime benefit
- c. Preexisting conditions
- d. Dependents to age 26
- D. Comprehensive coverage
- 1. Basic plan plus major medical (Corridor deductible)
- 2. Comprehensive major medical
- E. Hospital indemnity
- F. Managed Care
- 1. Health Maintenance Organization (HMO)
- a. Closed and Open Panel
- (1) Staff
- (2) Independent Practice Association (IPA)
- b. Gatekeeper/Primary Care Physician
- c. Concept of managing healthcare expenses
- 2. Preferred Provider Organization (PPO)
- a. In-network healthcare
- b. Out-of-network healthcare
- c. Concept of managing healthcare expenses
II. ACCIDENT & HEALTH INSURANCE PROVISIONS
- A. Individual policy mandatory provisions
- 1. Entire contract
- 2. Time limit on certain defenses / Incontestable
- 3. Grace period
- 4. Reinstatement
- 5. Notice of claim
- 6. Claim forms
- 7. Proof of loss
- 8. Time of payment of claims
- 9. Payment of claims
- 10. Physical examination and autopsy
- 11. Legal actions
- 12. Change of beneficiary
- B. Individual policy optional provisions
- 1. Change of occupation
- 2. Misstatement of age
- 3. Other Insurance in this insurer
- 4. Insurance with other insurers
- 5. Relation of earnings to insurance
- 6. Unpaid premium
- 7. Conformity with state statute
- 8. Illegal occupation
- C. Other provisions
- 1. Preexisting conditions (Accident / Disability)
- 2. Right to examine (free look)
- 3. Consideration
- 4. Policy continuation
- a. Optional renewable
- b. Conditionally renewable
- c. Guaranteed renewable
- d. Noncancelable
- 5. Assignment
- 6. Premium payment
- a. Modes (frequency)
- b. Effect of nonpayment
- 7. Waiver of premium
- 8. Insuring clause/agreement
- 9. Intoxicants and narcotics
III. OTHER ACCIDENT & HEALTH TOPICS
- A. Group insurance
- 1. Types of benefits
- 2. Group underwriting
- 3. Master policy and certificates
- 4. Nonduplication and coordination of benefits provisions
- 5. Eighteen month extension of benefits
- B. Approaches related to group insurance
- 1. Blanket coverage
- 2. MEWA coverage
- C. Social Security disability
- D. Accidental death and dismemberment coverage
- 1. Insuring agreements and peril covered
- 2. Principal sum
- 3. Capital sum
- 4. Beneficiary designations
- E. Business uses
- 1. Key person
- 2. Business overhead expense
- 3. Disability buy-out
- F. Federal income taxation
- 1. Accident and health insurance premiums
- 2. Accident and health insurance benefits
- G. Misrepresentation and concealment
- H. Formation of the health insurance contract
- 1. Application completion
- 2. Types and uses of initial premium receipts
- 3. Policy delivery
- a. Modified/amended vs. issued as applied for
- b. Nonprepaid vs. prepaid
- 4. Elements of a valid contract
IV. North Carolina Statutes and Regulations Pertinent to Accident & Health
- A. Contract of Insurance (Ref: Article 1 (G.S. 58-1-10))
- B. Definitions (Ref: Article 1 (G.S. 58-1-5))
- C. Commissioner of Insurance (Ref: Article 2 (G.S. 58-2-5, 40, 50, 60, 65, 69, 70, 155, 160, 161, 162, 163, 180, 185, 195, 200); 11 NCAC, Chapter 19, Section .0103)
- D. General Regulations for Insurance (Ref: Article 3 (G.S. 58-3- 25, 30, 40, 115, 120, 130, 135, 140, 145))
- E. Licensing of Agents, Brokers, Limited Representatives, and Adjusters (Ref: Article 33 (G.S. 58-33-1, 5, 10, 15, 17, 20, 26, 30, 31, 32, 40, 46, 50, 56, 60, 66, 70, 75, 76, 80, 82, 83, 85, 90, 95, 100, 105, 110, 115, 120, 125, 130, 132, 135); 11 NCAC 4.0423,11 NCAC, Chapter 4, Section .0423)
- F. Insurance Information & Privacy Protection Act (Ref: Article 39 (G.S. 58-39-5 through 58-39-120))
- G. Unfair Trade Practices (Ref: Article 63 (G.S. 58-63-15, 20, 50))
- H. False Pretenses and Cheats (Ref: Article 19 (G.S. 14-100))
- I. Continuing Education (Ref: 11 NCAC, Chapter 6A, Section .0800)
- J. General Regulations (Ref: Article 50 (G.S. 58-50-5, 20, 25, 26, 30, 35, 40, 45, 56, 57, 61, 62, 63, 65, 70); 11 NCAC, Chapter 4, Section .0423 (Ethical Standards))
- K. Nature of Policies (Ref: Article 51 (G.S. 58-51-1, 5, 10, 15, 16, 20, 25, 30, 35, 37, 38, 40, 45, 55, 57, 58, 59, 60, 61, 62, 70, 75, 80, 81, 85, 90, 95, 100, 105, 110, 115, 116, 120, 125))
- L. Group Health Insurance Continuation and Conversion Privileges (Ref: Article 53; CONTINUATION: (G.S. 58-53-1 through 58-53-40); CONVERSION: (G.S. 58-53-45 through 58-53-115))
- M. Fraternal Benefit Societies (Ref: Article 24 (G.S. 58-24-1))
- N. Life and Health Insurance Guaranty Association (Ref: Article 62 (G.S. 58-62-6, 21(d), 86))
Examination sources
- North Carolina Insurance Licensing Candidate Handbook
Back cover, code 02
- North Carolina Insurance Licensing Candidate Handbook
Page 7, Content Outlines
- North Carolina Insurance Licensing Candidate Handbook
Outline S3, effective date
- North Carolina Insurance Licensing Candidate Handbook
Outline S3, Accident and Health or Sickness examination content
- North Carolina Insurance Licensing Candidate Handbook
Outline S4, Accident and Health or Sickness examination content
- North Carolina Insurance Licensing Candidate Handbook
Outline S5, Accident and Health or Sickness examination content
- North Carolina Insurance Licensing Candidate Handbook
Page 14, Score Explanation
- North Carolina Insurance Licensing Candidate Handbook
Outline S3, scored multiple-choice assessment description
- North Carolina Insurance Licensing Candidate Handbook
Page 11, joint scoring boundary
- North Carolina Insurance Licensing Candidate Handbook
Quick Reference, examination authorization
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