NC Life Insurance Exam Prep
Questions with Guaranteed Pass
Solutions Scored A+(2025-2026)
Updated.
An agent who sells an individual life insurance policy in NC MUST deliver to the policyowner -
Answer A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT - Answer Sharing commissions
with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide? - Answer Premiums are
waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance - Answer 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? -
Answer 18
In a life insurance policy, which feature states that the policy will not cover certain risks? -
Answer Exclusion
Whole Life insurance are contractually guaranteed to provide each of the following EXCEPT? -
Answer Partial withdrawal features beyond a surrender charge period
A term life insurance policy matures - Answer Upon the insured's death during the term of the
policy
Which of these provisions require proof of insurability after a policy has lapsed? - Answer
Reinstatement
How does a typical Variable Life Policy Investment account grow? - Answer Through mutual
funds, stocks, and bonds
,All of the following are considered characteristics describing the nature of an insurance contract
EXCEPT - Answer Bilateral
A 15-year mortgage is best protected by what kind of life policy? - Answer 15-year decreasing
term
Companies in NC may transact solicitations for insurance ONLY through - Answer Licensed
agents
Which of these retirement plans can be started by an employee, even if another plan is in
existence - Answer 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 - Answer Variable life
If an annuity is terminated prior to the beginning of the income payment period, the contract
owner receives - Answer 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 - Answer Policy Loan Provision
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? -
Answer 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? - Answer Income that cannot be outlived by the owner
A level premium indicates - Answer 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? - Answer Daughter
, What group term life feature permits an individual to depart from the group and continue to be
converted without providing evidence of insurability? - Answer 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? - Answer Proceed will go to
the contingent beneficiary
S buys a $10,000 Whole Life Policy in 2003 and pays an annual premium of $100. S dies 5 years
later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on
the policy? - Answer Return of Premium rider
One of the stated purposes of the Life and Health Insurance Guaranty Association is to - Answer
Assist in the prevention of insurer insolvencies
The following acts are examples of unfair methods of competition and deceptive practices in the
business of insurance EXCEPT the use for - Answer Comparisons showing that a policy has
higher benefits
Which of the following policies combines investment choices with a form of Term coverage? -
Answer Variable universal life
Under a renewable term policy, - Answer The renewal premium is calculated on the basis of
the insured's attained age
Additional coverage can be added to a Whole Life policy by adding a(n) - Answer Decreasing
term rider
The rules and regulations of the Life and Health Insurance Guaranty Association in NC apply to -
Answer Life and Health policies insured by companies authorized in NC
What type of life policy covers 2 people and pays upon the death of the last insured? - Answer
Survivorship
K works for XYZ clothing store from September through December each year. K works 4 hours a
week for this period of time. The employer's Group Policy would consider K - Answer Not
eligible for the insurance because as a seasonal employee K doesn't meet the definition of
Questions with Guaranteed Pass
Solutions Scored A+(2025-2026)
Updated.
An agent who sells an individual life insurance policy in NC MUST deliver to the policyowner -
Answer A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT - Answer Sharing commissions
with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide? - Answer Premiums are
waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance - Answer 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? -
Answer 18
In a life insurance policy, which feature states that the policy will not cover certain risks? -
Answer Exclusion
Whole Life insurance are contractually guaranteed to provide each of the following EXCEPT? -
Answer Partial withdrawal features beyond a surrender charge period
A term life insurance policy matures - Answer Upon the insured's death during the term of the
policy
Which of these provisions require proof of insurability after a policy has lapsed? - Answer
Reinstatement
How does a typical Variable Life Policy Investment account grow? - Answer Through mutual
funds, stocks, and bonds
,All of the following are considered characteristics describing the nature of an insurance contract
EXCEPT - Answer Bilateral
A 15-year mortgage is best protected by what kind of life policy? - Answer 15-year decreasing
term
Companies in NC may transact solicitations for insurance ONLY through - Answer Licensed
agents
Which of these retirement plans can be started by an employee, even if another plan is in
existence - Answer 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 - Answer Variable life
If an annuity is terminated prior to the beginning of the income payment period, the contract
owner receives - Answer 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 - Answer Policy Loan Provision
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? -
Answer 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? - Answer Income that cannot be outlived by the owner
A level premium indicates - Answer 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? - Answer Daughter
, What group term life feature permits an individual to depart from the group and continue to be
converted without providing evidence of insurability? - Answer 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? - Answer Proceed will go to
the contingent beneficiary
S buys a $10,000 Whole Life Policy in 2003 and pays an annual premium of $100. S dies 5 years
later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on
the policy? - Answer Return of Premium rider
One of the stated purposes of the Life and Health Insurance Guaranty Association is to - Answer
Assist in the prevention of insurer insolvencies
The following acts are examples of unfair methods of competition and deceptive practices in the
business of insurance EXCEPT the use for - Answer Comparisons showing that a policy has
higher benefits
Which of the following policies combines investment choices with a form of Term coverage? -
Answer Variable universal life
Under a renewable term policy, - Answer The renewal premium is calculated on the basis of
the insured's attained age
Additional coverage can be added to a Whole Life policy by adding a(n) - Answer Decreasing
term rider
The rules and regulations of the Life and Health Insurance Guaranty Association in NC apply to -
Answer Life and Health policies insured by companies authorized in NC
What type of life policy covers 2 people and pays upon the death of the last insured? - Answer
Survivorship
K works for XYZ clothing store from September through December each year. K works 4 hours a
week for this period of time. The employer's Group Policy would consider K - Answer Not
eligible for the insurance because as a seasonal employee K doesn't meet the definition of
