NC LIFE INSURANCE PRACTICE EXAM QUESTIONS WITH CORRECT ANSWERS 2025

NC LIFE INSURANCE PRACTICE EXAM
QUESTIONS WITH CORRECT ANSWERS 2025
AllUofUtheUfollowingUareUincludedUwithinUtheUInsuranceUCommissioner'sUdutiesUEXCEPT



a)UConductingUinvestigationUofUallUdomesticUinsurers.

b)UReviewingUtheUinsurers'UannualUreports.

c)UWritingUNorthUCarolinaUinsuranceUlaws.

d)UReportingUanyUviolationsUofUinsuranceUlawsUtoUtheUAttorneyUGeneral.UWritingUinsuranceUlawUisUnotUtheU
InsuranceUCommissioner'sUresponsibility,UbutUenforcingUtheUlawUis.U-UCORRECTUANSWERU-
c)UWritingUNorthUCarolinaUinsuranceUlaws.



WritingUinsuranceUlawUisUnotUtheUInsuranceUCommissioner'sUresponsibility,UbutUenforcingUtheUlawUis.



WhichUofUtheUfollowingUinsuranceUprovidersUmustUbeUnonprofitUandUsellUinsuranceUonlyUtoUitsUmembers?



a)UReciprocal

b)UFraternal

c)UService

d)UMutualU-UCORRECTUANSWERU-b)UFraternal



ToUbeUcharacterizedUasUaUfraternalUbenefitUsociety,UtheUorganizationUmustUbeUnonprofit,UhaveUaUlodgeUsyst
emUthatUincludesUritualisticUworkUandUmaintainUaUrepresentativeUformUofUgovernmentUwithUelectedUoffice
rs.UInsuranceUmayUonlyUbeUsoldUtoUmembersUofUtheUsociety.



AUmarriedUcoupleUownsUaUpermanentUpolicyUwhichUcoversUbothUofUtheirUlivesUandUpaysUtheUdeathUbenefit
UonlyUuponUtheUdeathUofUtheUfirstUinsured.UWhichUpolicyUisUthat?




a)Second-to-Die

b)FamilyUIncomeUPolicy

c)JointULifeUPolicy

,d)SurvivorshipULifeUPolicyU-UCORRECTUANSWERU-c)JointULifeUPolicy



JointUlifeUpoliciesUcoverUtheUlivesUofUtwoUinsureds;UratesUareUblended.UUponUtheUdeathUofUtheUfirstUinsure
d,UtheUpolicyUends.



TheUinsuredUunderUaU$100,000UlifeUinsuranceUpolicyUwithUaUtripleUindemnityUriderUforUaccidentalUdeathUw
asUkilledUinUaUcarUaccident.UItUwasUdeterminedUthatUtheUaccidentUwasUhisUfault.UTheUtripleUindemnityUrider
UinUtheUpolicyUspecifiesUthatUtheUdeathUmustUnotUbeUcontributedUtoUbyUtheUinsuredUinUanyUmanner.UInUthis

Ucase,UwhatUwillUtheUpolicyUbeneficiaryUreceive?




a)$0

b)$50,000U(50%UofUtheUpolicyUvalue)

c)$100,000

d)$300,000U(tripleUtheUamountUofUpolicyUvalue)U-UCORRECTUANSWERU-c)$100,000



TheUtripleUindemnityUaccidentalUdeathUriderUobligatesUtheUcompanyUtoUpayUthreeUtimesUtheUfaceUamount
UofUtheUpolicyUifUtheUinsuredUdiesUasUaUresultUofUanUaccident.UTheUdeathUmustUbeUaccidentalUandUnotUcont

ributedUtoUbyUanyUotherUfactorsUandUmustUoccurUwithinU90UdaysUofUtheUaccident.UInUthisUcase,UsinceUtheUi
nsuredUcontributedUtoUhisUownUdeath,UtheUtripleUindemnityUriderUisUvoid,UbutUtheUbeneficiaryUwillUstillUrec
eiveUtheUpolicy'sUdeathUbenefit.



InUtermUpolicies,UwhatUhappensUtoUtheUpremiumUthroughoutUtheUtermUofUtheUpolicy?



a)UPremiumUgraduallyUincreases.

b)UPremiumUgraduallyUdecreases.

c)UPremiumUfluctuates.

d)UPremiumUalwaysUremainsUlevel.U-UCORRECTUANSWERU-d)UPremiumUalwaysUremainsUlevel.



ThereUareUthreeUbasicUtypesUofUtermUcoverageUavailable,UbasedUonUhowUtheUfaceUamountU(deathUbenefit)
UchangesUduringUtheUpolicyUterm:ULevel,UIncreasing,UandUDecreasing.URegardlessUofUtheUtypeUofUtermUinsu

ranceUpurchased,UtheUpremiumUisUoftenUlevelUthroughoutUtheUtermUofUtheUpolicy.

,AnUinsurerUneglectsUtoUpayUaUlegitimateUclaimUthatUisUcoveredUunderUtheUtermsUofUtheUpolicy.UWhichUofUt
heUfollowingUinsuranceUprinciplesUhasUtheUinsurerUviolated?



a)URepresentation

b)UAdhesion

c)UConsideration

d)UGoodUfaithU-UCORRECTUANSWERU-c)UConsideration



TheUbindingUforceUinUanyUcontractUisUconsideration.UConsiderationUonUtheUpartUofUtheUinsuredUisUtheUpay
mentUofUpremiumsUandUtheUhealthUrepresentationsUmadeUinUtheUapplication.UConsiderationUonUtheUpartU
ofUtheUinsurerUisUtheUpromiseUtoUpayUinUtheUeventUofUloss.



WhenUtheUbreadwinnerUthatUisUinsuredUbyUaUFamilyUPolicyUdies,UwhatUrightsUareUprovidedUtoUotherUfamily
UmembersUthatUareUcoveredUunderUtheUpolicy?




a)UTheyUcanUconvertUtheirUcoverageUtoUpermanentUlifeUinsuranceUwithUevidenceUofUinsurability

.b)UFamilyUmembersUareUnotUprovidedUanyUrights.

c)UTheyUcanUsurrenderUtheUcoverageUforUitsUcashUvalue.

d)UTheyUcanUconvertUtheirUcoverageUtoUpermanentUlifeUinsuranceUwithoutUevidenceUofUinsurability.U-
UCORRECTUANSWERU-

d)UTheyUcanUconvertUtheirUcoverageUtoUpermanentUlifeUinsuranceUwithoutUevidenceUofUinsurability.



FamilyUmembersUmayUconvertUtheirUtermUcoverageUtoUpermanentUinsuranceUifUrequestedUwithinUtheUtim
eUstatedUinUtheUpolicy.



ForcingUaUclientUtoUbuyUinsuranceUfromUaUparticularUlenderUasUaUconditionUofUgrantingUaUloanUisUdefinedUa
s



a)UDefamation.

b)UCoercion.

c)URebating.

d)UMisleadingUadvertising.U-UCORRECTUANSWERU-b)UCoercion.

, TheseUareUallUconsideredUtoUbeUUnfairUTradeUPractices,UwhichUareUmajorUviolationsUthatUcanUleadUtoUheav
yUpenalties.UCoercion,UforUexample,UisUwhenUtheUbankUwon'tUgiveUyouUanUautoUloanUunlessUyouUagreeUtoU
buyUautoUinsuranceUfromUthem.



WhenUanUinsurerUrequiresUaUwrittenUproofUofUlossUafterUnoticeUofUsuchUlossUhasUbeenUgivenUbyUtheUinsure
dUorUbeneficiary,UtheUcompanyUmust



a)URequestUaUpoliceUreportUfromUtheUDepartmentUofUMotorUVehicles.

b)UFurnishUaUblankUformUtoUbeUusedUforUthatUpurpose.

c)UDocumentUtheUrequestUforUfurtherUinvestigation.

d)USubmitUtheUlossUclaimUtoUunderwritingUforUpremiumUreviewUandUresolution.U-UCORRECTUANSWERU-
b)UFurnishUaUblankUformUtoUbeUusedUforUthatUpurpose.



WhenUanyUcompanyUunderUanyUinsuranceUpolicyUrequiresUaUwrittenUproofUofUlossUafterUnoticeUofUsuchUlos
sUhasUbeenUgivenUbyUtheUinsuredUorUbeneficiary,UtheUcompanyUorUitsUrepresentativeUmustUfurnishUaUblankU
formUtoUbeUusedUforUthatUpurpose.



InsuranceUcompaniesUareUrequiredUtoUprovideUproofUofUlossUformsUtoUtheUclaimantUwithinUhowUmanyUday
sUafterUreceiptUofUnoticeUofUloss?



a)U15

b)U30

c)U31

d)U45U-UCORRECTUANSWERU-a)U15



WhenUanyUcompanyUunderUanyUinsuranceUpolicyUrequiresUaUwrittenUproofUofUlossUafterUnoticeUofUtheUlossU
hasUbeenUgivenUbyUtheUinsuredUorUbeneficiary,UtheUcompanyUmustUfurnishUaUblankUformUwithinU15Udays.



WhichUisUtrueUaboutUaUspouseUtermUrider?



a)UTheUriderUisUusuallyUlevelUtermUinsurance.