NC Life Insurance Exam Practice Questions and Answers 100% Pass

NC Life Insurance Exam Practice Questions and Answers 100% Pass Fraternal Benefit Society - Correct Answer ️️ -An organization of people who share a month ethnic, religious or vocational affiliation. They are entities they have no capital stock, have a representative form of government. They exist not for profit but solely for the benefit of their members and their beneficiaries and operate on a lodge system. Fraternal Benefit Societies - Correct Answer ️️ -Agents of these societies must comply with the SAME general laws governing licensing that apply to resident and nonresident agents. Graded Premium Whole Life - Correct Answer ️️ -Has premiums they start very low then increase annually for a long period and stay level for the rest of the life of the policy. Death Benefit Option 1 of a universal life policy - Correct Answer ️️ -the benefit payable when the insured dies stays level and equal to the initial specified amount. Death Benefit Option 2 of a universal life policy - Correct Answer ️️ -this benefit is generally increasing. This benefit equals the policy's specified amount plus the cash value. Variable Universal Life insurance - Correct Answer ️️ -Combines the features of universal life insurane with the ability to allocate premiums to a seperate account. THIS MEANS the growth of the contract's cash value is based on the performance of the underlying investment. Straight Life Income - Correct Answer ️️ -provides the largest monthly income payment for a given amount o annualized funds. Also called pure life option, income payments are made for the annuitants lifetime, regardless of how long that may be. In regards to the Section 1035 tax code, which exchanges is permitted on a tax-free basis? - Correct Answer ️️ -1. life insurance for life insurance 2. Life insurance for an endowment 3.Endowment for an Endowment 4.Life insurance for an Annuity 5. Annuity for an Annuity Modified Endowment Contract (MEC) - Correct Answer ️️ -Tax law considers a single premium life insurance policy to be what? Anthony becomes an agent for Acme Insurance Company. Acme has not filed the Notice of appointment with the commissioner. It must do so within how many days? - Correct Answer ️️ -15 Days Spendthrift Clause - Correct Answer ️️ -A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them. Annuity death benefits - Correct Answer ️️ -are not tax deductible or tax free A couple makes a combined income for $175,000 annually.Will their Individual Retirement Plan (IRA) be tax deductible? - Correct Answer ️️ -No. If it is joint an dover $123,000 there is no deduction. What is the cap on an IRA tax deduction that will provide NO DEDUCTION for a single person? - Correct Answer ️️ -$74000 or more. Prepaid Tuition Plans - Correct Answer ️️ -College saving plan that allows for the purchase of units or credits at participating colleges and universities for future tuition. Limited to instate tuition only. NOT SUBJECT TO FEDERAL TAX. Parents are able to lock in the price of tuition at that time. risk sharing - Correct Answer ️️ -Allocating ownership of a risk to another party Risk Transfer - Correct Answer ️️ -A pure risk is transferred from the insured to the insurer, who typically is in a stronger financial position Which is a characteristic of industrial life Insurance? - Correct Answer ️️ -Premiums are payable monthly or weekly. Industrial Life Insurance - Correct Answer ️️ -These policies generally do not require a medical exam to qualify. They offer individual coverage in small face amounts usually less than $10,000. Reinsurance - Correct Answer ️️ -an arrangement by which the primary insurer that initially writes the insurance transfers to another insurer part or all