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NC Life Insurance Exam Prep
Questions And Verified Answers 2026
An agent who sells an individual life insurance policy in NC MUST deliver to the
policy owner- correct-answer - A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT- correct-answer -
Sharing commissions with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide?- correct-
answer - Premiums are waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance- correct-
answer - Is guilty of a misdemeanor
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A person is required to be AT LEAST how old before he or she is licensed as an
agent in NC?- correct-answer - 18
In a life insurance policy, which feature states that the policy will not cover certain
risks?- correct-answer - Exclusion
Whole Life insurance are contractually guaranteed to provide each of the
following EXCEPT?- correct-answer - Partial withdrawal features beyond a
surrender charge period
A term life insurance policy matures- correct-answer - Upon the insured's death
during the term of the policy
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Which of these provisions require proof of insurability after a policy has lapsed?-
correct-answer - Reinstatement
How does a typical Variable Life Policy Investment account grow?- correct-answer
- Through mutual funds, stocks, and bonds
Circulation of any oral or written statement or any pamphlet, circular, article or
literature that is false or maliciously critical of or derogatory to the financial
condition of an insurer is known as- correct-answer - Defamation
All of the following are considered characteristics describing the nature of an
insurance contract EXCEPT- correct-answer - Bilateral
A 15-year mortgage is best protected by what kind of life policy?- correct-answer
- 15-year decreasing term
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Companies in NC may transact solicitations for insurance ONLY through- correct-
answer - Licensed agents
Which of these retirement plans can be started by an employee, even if another
plan is in existence- correct-answer - Individual Retirement Account (IRA)
A life policy with a death benefit that can fluctuate according to the performance
of its underlying investment portfolio is referred to as- correct-answer - Variable
life
If an annuity is terminated prior to the beginning of the income payment period,
the contract owner receives- correct-answer - The contract surrender value at
that time
NC Life Insurance Exam Prep
Questions And Verified Answers 2026
An agent who sells an individual life insurance policy in NC MUST deliver to the
policy owner- correct-answer - A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT- correct-answer -
Sharing commissions with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide?- correct-
answer - Premiums are waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance- correct-
answer - Is guilty of a misdemeanor
,2|Page
A person is required to be AT LEAST how old before he or she is licensed as an
agent in NC?- correct-answer - 18
In a life insurance policy, which feature states that the policy will not cover certain
risks?- correct-answer - Exclusion
Whole Life insurance are contractually guaranteed to provide each of the
following EXCEPT?- correct-answer - Partial withdrawal features beyond a
surrender charge period
A term life insurance policy matures- correct-answer - Upon the insured's death
during the term of the policy
,3|Page
Which of these provisions require proof of insurability after a policy has lapsed?-
correct-answer - Reinstatement
How does a typical Variable Life Policy Investment account grow?- correct-answer
- Through mutual funds, stocks, and bonds
Circulation of any oral or written statement or any pamphlet, circular, article or
literature that is false or maliciously critical of or derogatory to the financial
condition of an insurer is known as- correct-answer - Defamation
All of the following are considered characteristics describing the nature of an
insurance contract EXCEPT- correct-answer - Bilateral
A 15-year mortgage is best protected by what kind of life policy?- correct-answer
- 15-year decreasing term
, 4|Page
Companies in NC may transact solicitations for insurance ONLY through- correct-
answer - Licensed agents
Which of these retirement plans can be started by an employee, even if another
plan is in existence- correct-answer - Individual Retirement Account (IRA)
A life policy with a death benefit that can fluctuate according to the performance
of its underlying investment portfolio is referred to as- correct-answer - Variable
life
If an annuity is terminated prior to the beginning of the income payment period,
the contract owner receives- correct-answer - The contract surrender value at
that time
