NC (NORTH CAROLINA) LIFE INSURANCE EXAM PREP 10/11/2026
NC (North Carolina) Life Insurance Exam Prep
Latest 2026-2027 100% Correct Questions with
Correct Answers GRADED A+
An agent who sells an individual life insurance policy in NC MUST deliver to the policyowner
A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT
Sharing commissions with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide?
Premiums are waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance
Is guilty of a misdemeanor
A person is required to be AT LEAST how old before he or she is licensed as an agent in NC?
18
10/11/2026
In a life insurance policy, which feature states that the policy will not cover certain risks?
1
, NC (NORTH CAROLINA) LIFE INSURANCE EXAM PREP 10/11/2026
Exclusion
Whole Life insurance are contractually guaranteed to provide each of the following EXCEPT?
Partial withdrawal features beyond a surrender charge period
A term life insurance policy matures
Upon the insured's death during the term of the policy
Which of these provisions require proof of insurability after a policy has lapsed?
Reinstatement
How does a typical Variable Life Policy Investment account grow?
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
Defamation
All of the following are considered characteristics describing the nature of an insurance contract EXCEPT
Bilateral
10/11/2026
2
, NC (NORTH CAROLINA) LIFE INSURANCE EXAM PREP 10/11/2026
A 15-year mortgage is best protected by what kind of life policy?
15-year decreasing term
Companies in NC may transact solicitations for insurance ONLY through
Licensed agents
Which of these retirement plans can be started by an employee, even if another plan is in existence
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
Variable life
If an annuity is terminated prior to the beginning of the income payment period, the contract owner
receives
The contract surrender value at that time
A provision in a life insurance policy that pays the policy owner an amount that doesn't surpass the
guaranteed cash value is called the
Policy Loan Provision
10/11/2026
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?
At future dates specified in the contract with no evidence of insurability required
3
, NC (NORTH CAROLINA) LIFE INSURANCE EXAM PREP 10/11/2026
T, age 70, withdrawals cash from a profit-sharing plan and purchases a Straight Life Annuity. What will
this transaction provide?
Income that cannot be outlived by the owner
A level premium indicates
The premium is fixed for the entire duration of the contract
K has a life insurance policy where her husband is beneficiary and her daughter is contingent
beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile
accident, where would the death proceeds be directed?
Daughter
Which of the following statements is correct about the period in which a Term Policy can be converted?
It can be changed by the insured
What group term life feature permits an individual to depart from the group and continue to be
converted without providing evidence of insurability?
Conversion
An insured covered by life insurance has just died. What will happen if the primary beneficiary had
already died before the insured and contingent beneficiary?
10/11/2026
Proceed will go to the contingent beneficiary
4
NC (North Carolina) Life Insurance Exam Prep
Latest 2026-2027 100% Correct Questions with
Correct Answers GRADED A+
An agent who sells an individual life insurance policy in NC MUST deliver to the policyowner
A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT
Sharing commissions with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide?
Premiums are waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance
Is guilty of a misdemeanor
A person is required to be AT LEAST how old before he or she is licensed as an agent in NC?
18
10/11/2026
In a life insurance policy, which feature states that the policy will not cover certain risks?
1
, NC (NORTH CAROLINA) LIFE INSURANCE EXAM PREP 10/11/2026
Exclusion
Whole Life insurance are contractually guaranteed to provide each of the following EXCEPT?
Partial withdrawal features beyond a surrender charge period
A term life insurance policy matures
Upon the insured's death during the term of the policy
Which of these provisions require proof of insurability after a policy has lapsed?
Reinstatement
How does a typical Variable Life Policy Investment account grow?
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
Defamation
All of the following are considered characteristics describing the nature of an insurance contract EXCEPT
Bilateral
10/11/2026
2
, NC (NORTH CAROLINA) LIFE INSURANCE EXAM PREP 10/11/2026
A 15-year mortgage is best protected by what kind of life policy?
15-year decreasing term
Companies in NC may transact solicitations for insurance ONLY through
Licensed agents
Which of these retirement plans can be started by an employee, even if another plan is in existence
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
Variable life
If an annuity is terminated prior to the beginning of the income payment period, the contract owner
receives
The contract surrender value at that time
A provision in a life insurance policy that pays the policy owner an amount that doesn't surpass the
guaranteed cash value is called the
Policy Loan Provision
10/11/2026
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?
At future dates specified in the contract with no evidence of insurability required
3
, NC (NORTH CAROLINA) LIFE INSURANCE EXAM PREP 10/11/2026
T, age 70, withdrawals cash from a profit-sharing plan and purchases a Straight Life Annuity. What will
this transaction provide?
Income that cannot be outlived by the owner
A level premium indicates
The premium is fixed for the entire duration of the contract
K has a life insurance policy where her husband is beneficiary and her daughter is contingent
beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile
accident, where would the death proceeds be directed?
Daughter
Which of the following statements is correct about the period in which a Term Policy can be converted?
It can be changed by the insured
What group term life feature permits an individual to depart from the group and continue to be
converted without providing evidence of insurability?
Conversion
An insured covered by life insurance has just died. What will happen if the primary beneficiary had
already died before the insured and contingent beneficiary?
10/11/2026
Proceed will go to the contingent beneficiary
4
