Final Exam - North Carolina Life Agent Questions With 100% Correct

Final Exam - North Carolina Life Agent Questions With 100% Correct Life insurance and Annuity Replacements define replacement as - answerexchanging an existing policy for a new policy S is a life insurance policyowner and enters into a written agreement to receive immediate cash in exchange for the sale and transfer of her life insurance policy. This agreement is referred to as a(n): - answerViatical Settlement P died five years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. Which of these actions will the insurer take? - answerBeneficiary will be paid the Death Benefit The circulation of written literature that is maliciously critical of an insurer's financial condition is called - answerDefamation Which of the following is TRUE about a qualified retirement that is "top heavy"? - answerMore than 60% of plan assets are in key employee accounts What type of life policy covers two people and pays upon the death of the last insured? - answerSurvivorship Which of the following combination plans is designed to protect and insured from an unpaid mortgage balance upon premature death? - answerJoint Life A(n) ______ Life policy offers the owner investment in products such as money-market funds, long-term bonds and equities. - answerVariable On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer then take? - answerCollect initial premium along with a signed health statement All of these statements about the Waiver of Premium provision are correct, EXCEPT: - answerInsured must be eligible for Social Security disability for claim to be accepted An employee requested that the balance of her 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately has the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee? - answerDistribution is subject to federal income tax withholding Which of these is NOT considered to be a right given to a policyowner? - answerModify a provision in the insurance contract Under a Renewable Term policy, - answerThe renewal premium is calculated on the basis of the insured's attained age T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary? - answerRequest of the change will be refused A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as: - answerVariable Life A temporary license is issued by the Commissioner of Insurance to allow - answerThe personal representative of a deceased producer to provide service to existing policyowners Equity indexed annuities are invested in which of the following: - answerS&P 500 Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policyowner becomes disabled? - answerPayor clause North Carolina requires that an insurance agent must complete __ hours of continuing education on the subject of law and ethics every two years. - answer3 Which premium schedule results in the lowest cost to the policyowner? - answerAnnual A noncontributory group term life plan is characterized by: - answerThe entire cost of the plan is paid for by the employer A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct? - answer20-Pay Life accumulates cash value faster than Straight Life The PRIMARY purpose of the life insurance replacement regulation is to protect the: - answerInterests of policyowners How long does the coverage normally remain on a limited-pay life policy? - answerAge 100 K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable? - answerLevel