NC LIFE INSURANCE UPDATED EXAM SCRIPT QUESTIONS
AND ANSWERS SURE A+
✔✔The Insurance Information and Privacy Protection Act is designed to limit or direct
the information collection activities of all of the following EXCEPT - ✔✔Insurance
regulators
✔✔All of these insurance products require an agent to have proper FINRA securities
regulation in order to sell them EXCEPT for - ✔✔Modified Whole Life
✔✔Which settlement option pays a stated amount to an annuitant, but no residual value
to a beneficiary? - ✔✔Life income
✔✔Life insurance that covers an insured's Whole Life with level premiums paid over a
limited time is called - ✔✔Limited pay life
✔✔W is a 39-year old female who just purchased an annuity to provide income for life
starting at age60. All of these would be acceptable annuity choices EXCEPT a(n) -
✔✔Immediate annuity; start providing income pay
✔✔N purchases an annuity by making payments in an amount no less than $100
quarterly. This describes which of the following annuities? - ✔✔Flexible Installment
Deferred
✔✔How would a contingent beneficiary receive the policy proceeds in an Accidental
Death and Dismemberment (AD&D) policy? - ✔✔If the primary beneficiary dies before
the insured
✔✔Which of the following is an element of a Variable Life policy? - ✔✔A fixed, level
premium
✔✔Insurance agents MUST obtain a license from NC's - ✔✔Commissioner of Insurance
✔✔Which type of life policy contains a monthly mortality charge as well as self-directed
investment choices? - ✔✔Variable Universal Life
✔✔Which of these is NOT a type of agent authority? - ✔✔Principal; express, implied,
and apparent
✔✔The annuity that represents the largest possible monthly payment to an individual
annuitant is a(n) - ✔✔Straight Life Annuity; because its based on life expectancy, but it
creates a risk that the annuitant may die early and forfeit much of the value of the
following annuity to the insurance company.
,✔✔Which of these types of policies may NOT have the Automatic Premium Loan
provision attached to it? - ✔✔Decreasing term
✔✔An engineering firm that would suffer financially from the death of a project manager
should purchase a - ✔✔Key person life policy
✔✔Insurance contracts are known as_______ because certain future conditions or acts
must be occur before any claims can be paid. - ✔✔Conditional
✔✔What type of annuity has a cash value that is based upon the performance of it's
underlying investment funds? - ✔✔Variable
✔✔On January 8, an applicant filled out an application for a life insurance policy but did
not include the initial premium. The insurance company approved the application
January 14 and issued the policy January 15. The producer delivered the policy on
January 26 and collected the first premium. When did the coverage become effective? -
✔✔January 26
✔✔When must insurable interest be present in order for a life insurance policy to be
void? - ✔✔When the application is made
✔✔Which of these are NOT an example of a Non-forfeiture option? - ✔✔Life income
✔✔A policy owner is allowed to pay premiums more than once a year under which
provision? - ✔✔Mode of Premium
✔✔If the Commissioner of Insurance finds that a licensed person has used fraudulent,
coercive, or dishonest practices or has proved to be incompetent, untrustworthy, or
financially irresponsible the law allows the Commissioner to - ✔✔Suspend, revoke, or
refuse to renew the agent's license
✔✔An agent that has been or engaged in conduct that violates the Insurance
Information and Privacy Protection Act shall be issued and served a statement of
charges and notice of hearing by the Commissioner of Insurance. The date of such
hearing shall be AT LEAST how many days after service of charges? - ✔✔10
✔✔A Whole Life insurance policy owner does not risk to continue making premiums
payments. Which of the following enables the policy owner to sell the policy for more
than its cash value? - ✔✔Life settlement contract
✔✔Every insurance agent/broker MUST maintain all records, books, and documents for
insurance transactions for a period of not less than - ✔✔5 years
, ✔✔P is a 40-year woman and would like to purchase an annuity that will provide a
lifetime income stream beginning at 60-years old. Which of the following did she NOT
buy? - ✔✔An immediate annuity
✔✔What determines the full amount of social security retirement benefits a qualified
individual is entitled to receive? - ✔✔Primary Insurance Amount (PIA)
✔✔K purchased a $10,000 Life Policy that will pay the face amount to her if she lives to
age 65, or to her beneficiary if she dies before age 65. K purchased which of the
following types of policies? - ✔✔Endowment at Age 65; cash values that grow at a rapid
pace so that the policy matures or endows at a specified date before age 100.
✔✔Inducing or attempting to induce any insured person through misrepresentation to
lapse, forfeit, or surrender insurance is - ✔✔Twisting
✔✔Equity indexed annuities are invested in which of the following? - ✔✔S & P 500
✔✔How does an indexed annuity differ from a fixed annuity? - ✔✔Indexed annuity
owners receive credited interest tied to the fluctuations of the linked indexed
✔✔D needs life insurance that provides coverage for only a limited amount of time
where also paying the lowest possible premium. What kind of policy is needed? -
✔✔Level term
✔✔The amount of coverage on a group credit life policy is limited to - ✔✔The insured's
total loan value
✔✔In a qualified retirement plan, the yearly contributions to an employee's account -
✔✔Are restricted to maximum levels set by the IRS
✔✔The Universal Life Policy is called an unbundled Life Policy because the
policyholder can see the expense charges, the interest earned, and the - ✔✔Cost of
insurance
✔✔Which provision is NOT a requirement in a group policy? - ✔✔Accidental
✔✔An employee with $25,000 group term life coverage was recently fired. The
employee's group coverage may be converted to a - ✔✔$25,000 individual whole life
policy
✔✔An individual working part-time has an annual income of $25,000. If this individual
has an IRA, what is the maximum deductible IRA contribution allowable? - ✔✔$25,000
AND ANSWERS SURE A+
✔✔The Insurance Information and Privacy Protection Act is designed to limit or direct
the information collection activities of all of the following EXCEPT - ✔✔Insurance
regulators
✔✔All of these insurance products require an agent to have proper FINRA securities
regulation in order to sell them EXCEPT for - ✔✔Modified Whole Life
✔✔Which settlement option pays a stated amount to an annuitant, but no residual value
to a beneficiary? - ✔✔Life income
✔✔Life insurance that covers an insured's Whole Life with level premiums paid over a
limited time is called - ✔✔Limited pay life
✔✔W is a 39-year old female who just purchased an annuity to provide income for life
starting at age60. All of these would be acceptable annuity choices EXCEPT a(n) -
✔✔Immediate annuity; start providing income pay
✔✔N purchases an annuity by making payments in an amount no less than $100
quarterly. This describes which of the following annuities? - ✔✔Flexible Installment
Deferred
✔✔How would a contingent beneficiary receive the policy proceeds in an Accidental
Death and Dismemberment (AD&D) policy? - ✔✔If the primary beneficiary dies before
the insured
✔✔Which of the following is an element of a Variable Life policy? - ✔✔A fixed, level
premium
✔✔Insurance agents MUST obtain a license from NC's - ✔✔Commissioner of Insurance
✔✔Which type of life policy contains a monthly mortality charge as well as self-directed
investment choices? - ✔✔Variable Universal Life
✔✔Which of these is NOT a type of agent authority? - ✔✔Principal; express, implied,
and apparent
✔✔The annuity that represents the largest possible monthly payment to an individual
annuitant is a(n) - ✔✔Straight Life Annuity; because its based on life expectancy, but it
creates a risk that the annuitant may die early and forfeit much of the value of the
following annuity to the insurance company.
,✔✔Which of these types of policies may NOT have the Automatic Premium Loan
provision attached to it? - ✔✔Decreasing term
✔✔An engineering firm that would suffer financially from the death of a project manager
should purchase a - ✔✔Key person life policy
✔✔Insurance contracts are known as_______ because certain future conditions or acts
must be occur before any claims can be paid. - ✔✔Conditional
✔✔What type of annuity has a cash value that is based upon the performance of it's
underlying investment funds? - ✔✔Variable
✔✔On January 8, an applicant filled out an application for a life insurance policy but did
not include the initial premium. The insurance company approved the application
January 14 and issued the policy January 15. The producer delivered the policy on
January 26 and collected the first premium. When did the coverage become effective? -
✔✔January 26
✔✔When must insurable interest be present in order for a life insurance policy to be
void? - ✔✔When the application is made
✔✔Which of these are NOT an example of a Non-forfeiture option? - ✔✔Life income
✔✔A policy owner is allowed to pay premiums more than once a year under which
provision? - ✔✔Mode of Premium
✔✔If the Commissioner of Insurance finds that a licensed person has used fraudulent,
coercive, or dishonest practices or has proved to be incompetent, untrustworthy, or
financially irresponsible the law allows the Commissioner to - ✔✔Suspend, revoke, or
refuse to renew the agent's license
✔✔An agent that has been or engaged in conduct that violates the Insurance
Information and Privacy Protection Act shall be issued and served a statement of
charges and notice of hearing by the Commissioner of Insurance. The date of such
hearing shall be AT LEAST how many days after service of charges? - ✔✔10
✔✔A Whole Life insurance policy owner does not risk to continue making premiums
payments. Which of the following enables the policy owner to sell the policy for more
than its cash value? - ✔✔Life settlement contract
✔✔Every insurance agent/broker MUST maintain all records, books, and documents for
insurance transactions for a period of not less than - ✔✔5 years
, ✔✔P is a 40-year woman and would like to purchase an annuity that will provide a
lifetime income stream beginning at 60-years old. Which of the following did she NOT
buy? - ✔✔An immediate annuity
✔✔What determines the full amount of social security retirement benefits a qualified
individual is entitled to receive? - ✔✔Primary Insurance Amount (PIA)
✔✔K purchased a $10,000 Life Policy that will pay the face amount to her if she lives to
age 65, or to her beneficiary if she dies before age 65. K purchased which of the
following types of policies? - ✔✔Endowment at Age 65; cash values that grow at a rapid
pace so that the policy matures or endows at a specified date before age 100.
✔✔Inducing or attempting to induce any insured person through misrepresentation to
lapse, forfeit, or surrender insurance is - ✔✔Twisting
✔✔Equity indexed annuities are invested in which of the following? - ✔✔S & P 500
✔✔How does an indexed annuity differ from a fixed annuity? - ✔✔Indexed annuity
owners receive credited interest tied to the fluctuations of the linked indexed
✔✔D needs life insurance that provides coverage for only a limited amount of time
where also paying the lowest possible premium. What kind of policy is needed? -
✔✔Level term
✔✔The amount of coverage on a group credit life policy is limited to - ✔✔The insured's
total loan value
✔✔In a qualified retirement plan, the yearly contributions to an employee's account -
✔✔Are restricted to maximum levels set by the IRS
✔✔The Universal Life Policy is called an unbundled Life Policy because the
policyholder can see the expense charges, the interest earned, and the - ✔✔Cost of
insurance
✔✔Which provision is NOT a requirement in a group policy? - ✔✔Accidental
✔✔An employee with $25,000 group term life coverage was recently fired. The
employee's group coverage may be converted to a - ✔✔$25,000 individual whole life
policy
✔✔An individual working part-time has an annual income of $25,000. If this individual
has an IRA, what is the maximum deductible IRA contribution allowable? - ✔✔$25,000
