NC Life Insurance Practice Exam || Most Recent Exam 2026
-2027 Actual Complete Real Exam Questions And Correct
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What is the maximum face amount on an industrial life policy?
a)$1,000
b)$10,000
c)$1 million
d)Unlimited - ANSWER -a)$1,000
Industrial life insurance is a form of life insurance where
premiums are payable monthly or more frequently. The face
amount of an industrial insurance policy may not exceed
$1,000.
Which of the following best defines target premium in a
universal life policy?
a)The corridor of insurance
b)The recommended amount to keep the policy in force
throughout its lifetime
c)The maximum amount the policyowner may pay on a policy
,d)The minimum amount to make sure the policy is annually
renewable - ANSWER -b)The recommended amount to keep the
policy in force throughout its lifetime
The target premium is a recommended amount that should be
paid on a policy in order to cover the cost of insurance
protection and to keep the policy in force throughout its
lifetime.
An insured has a continuous premium whole life policy. She
would like to use the policy dividends to pay off her policy
sooner than would have been possible otherwise. What
dividend option could she use?
a)One-year term
b)Reduction of premium
c)Accumulation at interest
d)Paid-up option - ANSWER -d)Paid-up option
With the paid-up option, the insurer can accumulate dividends
at interest and then use them, in addition to interest and the
policy's cash value, to pay the policy earlier than planned. This
is different from paid-up additions, in which the dividends are
used to buy additional policies that increase the face amount of
the original policy.
Which option is being utilized when the insurer accumulates
dividends at interest and then uses the accumulated dividends,
,plus interest, and the policy cash value to pay the policy up
early?
a)Accumulation at
Interest
b)Paid-up
additions
c)Dividend Accumulation
option
d)Paid-up option - ANSWER -d)Paid-
up option
With the paid-up option, the insurer can accumulate dividends
at interest and then use them, in addition to interest and the
policy's cash value, to pay the policy earlier than planned. This
is different from paid-up additions, in which the dividends are
used to buy additional policies that increase the face amount of
the original policy.
What is the advantage of reinstating a policy instead of applying
for a new one?
a)The cash values have gained interest while the policy was
lapsed
b)The original age is used for premium determination
c)Proof of insurability is not required
d)The face amount can be increased - ANSWER -b)The original
age is used for premium determination
, The reinstatement provision allows the policyowner an
opportunity to put a lapsed policy back in force, subject to
proving continued insurability. If the policyowner elects to
reinstate the policy, as opposed to purchasing a new policy, the
reinstated policy is restored to its original status.
Which of the following riders would NOT cause the Death
Benefit to increase?
a)Guaranteed Insurability Rider
b)Cost of Living
Rider
c)Accidental Death
Rider
d)Payor Benefit Rider - ANSWER -d)Payor
Benefit Rider
Payor Benefit Rider does not increase the Death Benefit; it only
pays the premium if the payor is disabled or dies. With
Guaranteed Insurability Rider, the policyowner can increase DB
at specified ages or events, i.e. marriage or birth of a child;
Cost of Living Rider increases DB to keep pace with inflation; in
Accidental Death Rider, if the insured dies from an accident, DB
is a multiple of the Face Amount.
Any agent, broker or limited representative who acts for a
person other than himself negotiating a contract of insurance,
for the purpose of receiving the premium, is deemed to be
-2027 Actual Complete Real Exam Questions And Correct
Answers (Verified Answers) Already Graded A+ ||
Guaranteed Success!! Newest Exam |
Just Released!!
What is the maximum face amount on an industrial life policy?
a)$1,000
b)$10,000
c)$1 million
d)Unlimited - ANSWER -a)$1,000
Industrial life insurance is a form of life insurance where
premiums are payable monthly or more frequently. The face
amount of an industrial insurance policy may not exceed
$1,000.
Which of the following best defines target premium in a
universal life policy?
a)The corridor of insurance
b)The recommended amount to keep the policy in force
throughout its lifetime
c)The maximum amount the policyowner may pay on a policy
,d)The minimum amount to make sure the policy is annually
renewable - ANSWER -b)The recommended amount to keep the
policy in force throughout its lifetime
The target premium is a recommended amount that should be
paid on a policy in order to cover the cost of insurance
protection and to keep the policy in force throughout its
lifetime.
An insured has a continuous premium whole life policy. She
would like to use the policy dividends to pay off her policy
sooner than would have been possible otherwise. What
dividend option could she use?
a)One-year term
b)Reduction of premium
c)Accumulation at interest
d)Paid-up option - ANSWER -d)Paid-up option
With the paid-up option, the insurer can accumulate dividends
at interest and then use them, in addition to interest and the
policy's cash value, to pay the policy earlier than planned. This
is different from paid-up additions, in which the dividends are
used to buy additional policies that increase the face amount of
the original policy.
Which option is being utilized when the insurer accumulates
dividends at interest and then uses the accumulated dividends,
,plus interest, and the policy cash value to pay the policy up
early?
a)Accumulation at
Interest
b)Paid-up
additions
c)Dividend Accumulation
option
d)Paid-up option - ANSWER -d)Paid-
up option
With the paid-up option, the insurer can accumulate dividends
at interest and then use them, in addition to interest and the
policy's cash value, to pay the policy earlier than planned. This
is different from paid-up additions, in which the dividends are
used to buy additional policies that increase the face amount of
the original policy.
What is the advantage of reinstating a policy instead of applying
for a new one?
a)The cash values have gained interest while the policy was
lapsed
b)The original age is used for premium determination
c)Proof of insurability is not required
d)The face amount can be increased - ANSWER -b)The original
age is used for premium determination
, The reinstatement provision allows the policyowner an
opportunity to put a lapsed policy back in force, subject to
proving continued insurability. If the policyowner elects to
reinstate the policy, as opposed to purchasing a new policy, the
reinstated policy is restored to its original status.
Which of the following riders would NOT cause the Death
Benefit to increase?
a)Guaranteed Insurability Rider
b)Cost of Living
Rider
c)Accidental Death
Rider
d)Payor Benefit Rider - ANSWER -d)Payor
Benefit Rider
Payor Benefit Rider does not increase the Death Benefit; it only
pays the premium if the payor is disabled or dies. With
Guaranteed Insurability Rider, the policyowner can increase DB
at specified ages or events, i.e. marriage or birth of a child;
Cost of Living Rider increases DB to keep pace with inflation; in
Accidental Death Rider, if the insured dies from an accident, DB
is a multiple of the Face Amount.
Any agent, broker or limited representative who acts for a
person other than himself negotiating a contract of insurance,
for the purpose of receiving the premium, is deemed to be
