©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
NC Life Insurance Exam Prep Questions and
Answers (100% Pass)
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
In a life insurance policy, which feature states that the policy will not cover certain risks?
- ✔️✔️Exclusion
Whole Life insurance are contractually guaranteed to provide each of the following
EXCEPT? - ✔️✔️Partial withdrawal features beyond a surrender charge period
1
,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
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
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
2
, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
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
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
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
3
NC Life Insurance Exam Prep Questions and
Answers (100% Pass)
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
In a life insurance policy, which feature states that the policy will not cover certain risks?
- ✔️✔️Exclusion
Whole Life insurance are contractually guaranteed to provide each of the following
EXCEPT? - ✔️✔️Partial withdrawal features beyond a surrender charge period
1
,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
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
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
2
, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
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
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
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
3
