NC Life Insurance Practice Exam Questions and Answers Already Passed A GUARANTEED

Life Insurance Licensing Practice Exam for NC Insurance Professionals | Verified Answers A+ Rated Implied - answer - ______________ authority is established through verbalization and occurs when appropriate actions are taken to carry out the authority granted to fulfill the principal's goals. Apparant - answer - The appearance of power on behalf of the insurer through the actions or use of identifying materials by the agent, such as company advertising material, is called _____________ authority. Express - answer - ____________ authority spells out in contract form the activities that the agent has the power to perform on behalf of the insurer? policy owners; policyholders - answer - Purchasers of life insurance policies are _____________, but are not necessarily _______________. False - answer - T/F: Since a mutual insurance company has no stockholders, it cannot be considered a corporation. True - answer - T/F: Proceeds of a life insurance policy paid as a lump sum death benefit are exempt from federal income tax. Franchise - answer - _____________ health plans are sometimes called "wholesale plans" and provide health insurance coverage to members of an association or professional society. A Modified Endowment (MEC) contract. - answer - A life insurance policy under which the amount a policy owner pays in during the first years exceeds the sum of net level premiums that would have been payable to provide paid-up future benefits in seven years is called: Fixed - answer - The type of annuity that provides a guaranteed rate of return is called a ______________ annuity. True - answer - T/F: "Partnerships" usually are made up of two or more owners who contribute and share profits. The Indexing Method and the Participation Rate - answer - What are the two features that have the greatest effect on the amount of additional interest that may be credited to an equity-indexed annuity? The Employer - answer - A Salary Continuation Plan is set up between the employer and employees and is funded by True - answer - T/F: Most adjustable life policies are more expensive than conventional term policies or whole life policies. Variable - answer - The exclusion ratio is always considered 100% in _________ annuities. Level - answer - ____________ term insurance provides a level amount of protection for a specified period, after which the policy expires. Grace Period - answer - The period between the time a life insurance premium is due and the time the policy lapses is called the: Immediately - answer - On a reinstated health policy when no new application is requested, how long after the policy's reinstatement will coverage for accidents become effective? True - answer - T/F: Proceeds of a life insurance policy paid as a lump sum death benefit are exempt from federal income tax. Fixed - answer - The type of annuity that provides a guaranteed rate of return is called a ______________ annuity. True - answer - T/F: "Partnerships" usually are made up of two or more owners who contribute and share profits. The Employer - answer - A Salary Continuation Plan is set up between the employer and employees and is funded by: 31 days - answer - According to N.C. law, all group life policies must contain a conversion provision which allows the covered individual _______ to convert the group coverage to an individual plan without evidence of insurability if their employment is terminated. True - answer - T/F: SIMPLE plans can be structured as an IRA or a 401(k). Fixed Rate Annuity - answer - Equity indexed annuities are a form of: Private Insurers - answer - Assessment Mutual Insurers, Reinsurers, and Home Service Insurers are all examples of what type of insurer? True - answer - T/F: The key factor behind ERISA's development was to encourage employers to establish employee health plans allowing them to self-insure. Blanket Insurance Policies - answer - What type of life insurance r