NC LIFE INSURANCE COMPREHENSIVE LATEST QUESTIONS
AND ANSWERS SURE A+
✔✔Senior citizens are given a 30-day right to return a life insurance policy" - ✔✔At age
60 or older.
✔✔An attempt by an agent to deter an insured from replacing an existing life insurance
policy is called - ✔✔Conservation
✔✔A person owns a life annuity. He elects to receive his annuity payments monthly for
the remainder of his life with "ten years certain." The annuity will make payments -
✔✔For a minimum of 120 months ans a maximum of the remainder of his life.
✔✔Transferring ownership rights from the current owner to another person is known as:
- ✔✔Assignment
✔✔The incontestable clause of a life insurance policy: - ✔✔Prevents the insurer from
voiding the policy after 2 years on the grounds of misrepresentation, concealment or
fraud of the insured
✔✔According to the California Insurance Code, a binder is a valid insurance policy for
the purpose of proving the insured has issued insurance coverage specified in the
binder for all of the following classes of insurance EXCEPT:
> Marine
> Auto
> Life
> Fire - ✔✔Life
✔✔How can partners guarantee a market for their share of the business in the event of
death? - ✔✔Buy-sell agreements
✔✔Insurable Interest in a life insurance policy: - ✔✔Does not need to exist at the time of
loss, only at the time the policy is written.
✔✔How many days does the California Insurance Code give an individual to return a
life policy for cancellation? - ✔✔Between 10 and 30 days.
✔✔Most life insurers belong to which of the following industry organizations?
> Medical information Bureau
> national Association of insurance Commissioners
> Securities and Exchange Commission
> All of the above - ✔✔Medical Information Bureau
, ✔✔In regards of representations, which of the following is correct?
> Representations are guaranteed to be true
> Representations can only be in writing
> Representations are statements made to the best of one's knowledge
> All of the above statements are true - ✔✔Representations are statements made to the
best of one's knowledge
✔✔In insurance terminology, "indemnify" means - ✔✔Make whole
✔✔A husband and wife have a disabled child who is financially dependent upon them.
The death of one parent would but result in financial disaster for the disabled child, but
the death of both parents would. Which policy should they purchase? - ✔✔Second-to-
die policy
✔✔What occurs during the accumulation period of an annuity? - ✔✔Allows the annuity
to build on a tax-deferred basis
✔✔The tendency of a person who has greater than average exposure to loss to seek
out insurance is called: - ✔✔Adverse selection
✔✔Which contract promises to pay the owner a guaranteed minimum income for as
long as the individual lives? - ✔✔A life annuity
✔✔Why would a business use a key person life insurance policy? - ✔✔To protect the
company from the financial consequences of the death of a vice president.
✔✔In financial planning, what is the Needs Approach concept based on? - ✔✔Family
needs
✔✔Why is having a large number of similar exposure units important to insurers? -
✔✔The greater the number insured, the more accurately the insurer can predict and set
appropriate premiums.
✔✔When the public purchases annuities, they are attempting to address the risk of: -
✔✔Outliving the money they have saved for retirement.
✔✔All of the following qualify as "background information" as defined in Section 1729.2
of California Insurance Code, EXCEPT:
> Misdemeanor charges filed, not resulting in a conviction.
> An administrative action regarding a professional or occupational license.
AND ANSWERS SURE A+
✔✔Senior citizens are given a 30-day right to return a life insurance policy" - ✔✔At age
60 or older.
✔✔An attempt by an agent to deter an insured from replacing an existing life insurance
policy is called - ✔✔Conservation
✔✔A person owns a life annuity. He elects to receive his annuity payments monthly for
the remainder of his life with "ten years certain." The annuity will make payments -
✔✔For a minimum of 120 months ans a maximum of the remainder of his life.
✔✔Transferring ownership rights from the current owner to another person is known as:
- ✔✔Assignment
✔✔The incontestable clause of a life insurance policy: - ✔✔Prevents the insurer from
voiding the policy after 2 years on the grounds of misrepresentation, concealment or
fraud of the insured
✔✔According to the California Insurance Code, a binder is a valid insurance policy for
the purpose of proving the insured has issued insurance coverage specified in the
binder for all of the following classes of insurance EXCEPT:
> Marine
> Auto
> Life
> Fire - ✔✔Life
✔✔How can partners guarantee a market for their share of the business in the event of
death? - ✔✔Buy-sell agreements
✔✔Insurable Interest in a life insurance policy: - ✔✔Does not need to exist at the time of
loss, only at the time the policy is written.
✔✔How many days does the California Insurance Code give an individual to return a
life policy for cancellation? - ✔✔Between 10 and 30 days.
✔✔Most life insurers belong to which of the following industry organizations?
> Medical information Bureau
> national Association of insurance Commissioners
> Securities and Exchange Commission
> All of the above - ✔✔Medical Information Bureau
, ✔✔In regards of representations, which of the following is correct?
> Representations are guaranteed to be true
> Representations can only be in writing
> Representations are statements made to the best of one's knowledge
> All of the above statements are true - ✔✔Representations are statements made to the
best of one's knowledge
✔✔In insurance terminology, "indemnify" means - ✔✔Make whole
✔✔A husband and wife have a disabled child who is financially dependent upon them.
The death of one parent would but result in financial disaster for the disabled child, but
the death of both parents would. Which policy should they purchase? - ✔✔Second-to-
die policy
✔✔What occurs during the accumulation period of an annuity? - ✔✔Allows the annuity
to build on a tax-deferred basis
✔✔The tendency of a person who has greater than average exposure to loss to seek
out insurance is called: - ✔✔Adverse selection
✔✔Which contract promises to pay the owner a guaranteed minimum income for as
long as the individual lives? - ✔✔A life annuity
✔✔Why would a business use a key person life insurance policy? - ✔✔To protect the
company from the financial consequences of the death of a vice president.
✔✔In financial planning, what is the Needs Approach concept based on? - ✔✔Family
needs
✔✔Why is having a large number of similar exposure units important to insurers? -
✔✔The greater the number insured, the more accurately the insurer can predict and set
appropriate premiums.
✔✔When the public purchases annuities, they are attempting to address the risk of: -
✔✔Outliving the money they have saved for retirement.
✔✔All of the following qualify as "background information" as defined in Section 1729.2
of California Insurance Code, EXCEPT:
> Misdemeanor charges filed, not resulting in a conviction.
> An administrative action regarding a professional or occupational license.
