NC LIFE INSURANCE EXAM PREP
2025/2026 QUESTIONS AND ANSWERS
100% PASS
An agent who sells an individual life insurance policy in NC MUST deliver to the policyowner -
ANS A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT - ANS Sharing commissions with
other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide? - ANS Premiums are
waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance - ANS 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? -
ANS 18
In a life insurance policy, which feature states that the policy will not cover certain risks? -
ANS Exclusion
1 @COPYRIGHT 2025/2026.
,Whole Life insurance are contractually guaranteed to provide each of the following EXCEPT? -
ANS Partial withdrawal features beyond a surrender charge period
A term life insurance policy matures - ANS Upon the insured's death during the term of the
policy
Which of these provisions require proof of insurability after a policy has lapsed? -
ANS Reinstatement
How does a typical Variable Life Policy Investment account grow? - ANS 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 -
ANS Defamation
All of the following are considered characteristics describing the nature of an insurance
contract EXCEPT - ANS Bilateral
A 15-year mortgage is best protected by what kind of life policy? - ANS 15-year decreasing
term
Companies in NC may transact solicitations for insurance ONLY through - ANS Licensed
agents
Which of these retirement plans can be started by an employee, even if another plan is in
existence - ANS 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 - ANS Variable life
2 @COPYRIGHT 2025/2026.
, If an annuity is terminated prior to the beginning of the income payment period, the contract
owner receives - ANS 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 - ANS Policy Loan Provision
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? -
ANS 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? - ANS Income that cannot be outlived by the owner
A level premium indicates - ANS 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? - ANS Daughter
Which of the following statements is correct about the period in which a Term Policy can be
converted? - ANS 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? - ANS 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? - ANS Proceed will go to the
contingent beneficiary
3 @COPYRIGHT 2025/2026.
2025/2026 QUESTIONS AND ANSWERS
100% PASS
An agent who sells an individual life insurance policy in NC MUST deliver to the policyowner -
ANS A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT - ANS Sharing commissions with
other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide? - ANS Premiums are
waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance - ANS 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? -
ANS 18
In a life insurance policy, which feature states that the policy will not cover certain risks? -
ANS Exclusion
1 @COPYRIGHT 2025/2026.
,Whole Life insurance are contractually guaranteed to provide each of the following EXCEPT? -
ANS Partial withdrawal features beyond a surrender charge period
A term life insurance policy matures - ANS Upon the insured's death during the term of the
policy
Which of these provisions require proof of insurability after a policy has lapsed? -
ANS Reinstatement
How does a typical Variable Life Policy Investment account grow? - ANS 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 -
ANS Defamation
All of the following are considered characteristics describing the nature of an insurance
contract EXCEPT - ANS Bilateral
A 15-year mortgage is best protected by what kind of life policy? - ANS 15-year decreasing
term
Companies in NC may transact solicitations for insurance ONLY through - ANS Licensed
agents
Which of these retirement plans can be started by an employee, even if another plan is in
existence - ANS 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 - ANS Variable life
2 @COPYRIGHT 2025/2026.
, If an annuity is terminated prior to the beginning of the income payment period, the contract
owner receives - ANS 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 - ANS Policy Loan Provision
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? -
ANS 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? - ANS Income that cannot be outlived by the owner
A level premium indicates - ANS 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? - ANS Daughter
Which of the following statements is correct about the period in which a Term Policy can be
converted? - ANS 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? - ANS 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? - ANS Proceed will go to the
contingent beneficiary
3 @COPYRIGHT 2025/2026.
