NC Life Insurance Exam Prep QUESTIONS WITH WELL VERIFIED
ANSWERS
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
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
ANSWERS
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
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
