LIFE INSURANCE EXAM 7 CERTIFICATION
EVALUATION 2026 FULL QUESTIONS WITH
SOLUTIONS
◉ 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
◉ 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.
Answer: Defamation
◉ 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
◉ Which of the following statements is correct about the period in
which a Term Policy can be converted?. Answer: 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?. 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
EVALUATION 2026 FULL QUESTIONS WITH
SOLUTIONS
◉ 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
◉ 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.
Answer: Defamation
◉ 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
◉ Which of the following statements is correct about the period in
which a Term Policy can be converted?. Answer: 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?. 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
