Nc Life Insurance Practice (2026/2027) Update|Exam Questions With Multiple Choices |Verified & Revised Answers (New)!!!

NC LIFE INSURANCE PRACTICE
(2026/2027) UPDATE|EXAM
QUESTIONS WITH MULTIPLE
CHOICES |VERIFIED & REVISED
ANSWERS (NEW)!!!
AllmofmthemfollowingmaremincludedmwithinmthemInsurancemCommissioner'smdutiesmEXC
EPT



a)mConductingminvestigationmofmallmdomesticminsurers.

b)mReviewingmtheminsurers'mannualmreports.

c)mWritingmNorthmCarolinaminsurancemlaws.

d)mReportingmanymviolationsmofminsurancemlawsmtomthemAttorneymGeneral.mWritingmi
nsurancemlawmismnotmthemInsurancemCommissioner'smresponsibility,mbutmenforcingmthe
mlawmis.m-mCORRECTmANSWERmc)mWritingmNorthmCarolinaminsurancemlaws.



WritingminsurancemlawmismnotmthemInsurancemCommissioner'smresponsibility,mbutmenfo
rcingmthemlawmis.



Whichmofmthemfollowingminsurancemprovidersmmustmbemnonprofitmandmsellminsurance
monlymtomitsmmembers?



a)mReciprocal

b)mFraternal

c)mService

d)mMutualm-mCORRECTmANSWERmb)mFraternal

,Tombemcharacterizedmasmamfraternalmbenefitmsociety,mthemorganizationmmustmbemnon
profit,mhavemamlodgemsystemmthatmincludesmritualisticmworkmandmmaintainmamreprese
ntativemformmofmgovernmentmwithmelectedmofficers.mInsurancemmaymonlymbemsoldmt
ommembersmofmthemsociety.



Ammarriedmcouplemownsmampermanentmpolicymwhichmcoversmbothmofmtheirmlivesman
dmpaysmthemdeathmbenefitmonlymuponmthemdeathmofmthemfirstminsured.mWhichmpoli
cymismthat?



a)Second-to-Die

b)FamilymIncomemPolicy

c)JointmLifemPolicy

d)SurvivorshipmLifemPolicym-mCORRECTmANSWERmc)JointmLifemPolicy



Jointmlifempoliciesmcovermthemlivesmofmtwominsureds;mratesmaremblended.mUponmthe
mdeathmofmthemfirstminsured,mthempolicymends.



Theminsuredmundermam$100,000mlifeminsurancempolicymwithmamtriplemindemnitymrider
mformaccidentalmdeathmwasmkilledminmamcarmaccident.mItmwasmdeterminedmthatmthe
maccidentmwasmhismfault.mThemtriplemindemnitymriderminmthempolicymspecifiesmthatm
themdeathmmustmnotmbemcontributedmtombymtheminsuredminmanymmanner.mInmthism
case,mwhatmwillmthempolicymbeneficiarymreceive?



a)$0

b)$50,000m(50%mofmthempolicymvalue)

c)$100,000

d)$300,000m(triplemthemamountmofmpolicymvalue)m-mCORRECTmANSWERmc)$100,000

,Themtriplemindemnitymaccidentalmdeathmridermobligatesmthemcompanymtompaymthreem
timesmthemfacemamountmofmthempolicymifmtheminsuredmdiesmasmamresultmofmanmac
cident.mThemdeathmmustmbemaccidentalmandmnotmcontributedmtombymanymothermfact
orsmandmmustmoccurmwithinm90mdaysmofmthemaccident.mInmthismcase,msincemthemin
suredmcontributedmtomhismownmdeath,mthemtriplemindemnitymridermismvoid,mbutmthe
mbeneficiarymwillmstillmreceivemthempolicy'smdeathmbenefit.



Inmtermmpolicies,mwhatmhappensmtomthempremiummthroughoutmthemtermmofmthempo
licy?



a)mPremiummgraduallymincreases.

b)mPremiummgraduallymdecreases.

c)mPremiummfluctuates.

d)mPremiummalwaysmremainsmlevel.m-
mCORRECTmANSWERmd)mPremiummalwaysmremainsmlevel.



Theremaremthreembasicmtypesmofmtermmcoveragemavailable,mbasedmonmhowmthemface
mamountm(deathmbenefit)mchangesmduringmthempolicymterm:mLevel,mIncreasing,mandm
Decreasing.mRegardlessmofmthemtypemofmtermminsurancempurchased,mthempremiummis
moftenmlevelmthroughoutmthemtermmofmthempolicy.



Anminsurermneglectsmtompaymamlegitimatemclaimmthatmismcoveredmundermthemterms
mofmthempolicy.mWhichmofmthemfollowingminsurancemprinciplesmhasmtheminsurermviola
ted?



a)mRepresentation

b)mAdhesion

c)mConsideration

d)mGoodmfaithm-mCORRECTmANSWERmc)mConsideration

, Thembindingmforceminmanymcontractmismconsideration.mConsiderationmonmthempartmof
mtheminsuredmismthempaymentmofmpremiumsmandmthemhealthmrepresentationsmmade
minmthemapplication.mConsiderationmonmthempartmofmtheminsurermismthempromisemto
mpayminmthemeventmofmloss.



WhenmthembreadwinnermthatmisminsuredmbymamFamilymPolicymdies,mwhatmrightsmare
mprovidedmtomothermfamilymmembersmthatmaremcoveredmundermthempolicy?



a)mTheymcanmconvertmtheirmcoveragemtompermanentmlifeminsurancemwithmevidencemo
fminsurability

.b)mFamilymmembersmaremnotmprovidedmanymrights.

c)mTheymcanmsurrendermthemcoveragemformitsmcashmvalue.

d)mTheymcanmconvertmtheirmcoveragemtompermanentmlifeminsurancemwithoutmevidence
mofminsurability.m-
mCORRECTmANSWERmd)mTheymcanmconvertmtheirmcoveragemtompermanentmlifeminsur
ancemwithoutmevidencemofminsurability.



Familymmembersmmaymconvertmtheirmtermmcoveragemtompermanentminsurancemifmreq
uestedmwithinmthemtimemstatedminmthempolicy.



Forcingmamclientmtombuyminsurancemfrommamparticularmlendermasmamconditionmofmgr
antingmamloanmismdefinedmas



a)mDefamation.

b)mCoercion.

c)mRebating.

d)mMisleadingmadvertising.m-mCORRECTmANSWERmb)mCoercion.