NC LIFE INSURANCE FINAL EXAM UPDATED QUESTIONS
AND ANSWERS SURE A+
✔✔Which of these arrangements allows one to bypass insurable interest laws? -
✔✔Investor-Originated Life Insurance
✔✔A father who dies within 3 years after purchasing a life insurance policy on his infant
daughter can have the policy premiums waived under which provision? - ✔✔Payor
provision
✔✔Which of the following correctly explains the actions an agent should take if a
customer wants to apply for a insurance company? - ✔✔Complete the application and
review the information with the customer prior to obtaining the customer's signature,
then send the application off to the insurance company
✔✔An insured is past due on his life insurance premium, but is still within the Grace
Period. What will the beneficiary receive if the insured dies during this Grace Period? -
✔✔Full face amount minus any past due premiums
✔✔The premiums paid by an employer for his employee's group life insurance are
usually considered to be - ✔✔Tax-deductible to the employer
✔✔An IRA owner can start making withdrawals and NOT be subjected to a tax penalty
beginning at what age? - ✔✔59 1/2
✔✔A young, married teacher has 2 children and owns a Whole Life Policy. If the
teacher wants an increasing death benefit to protect against inflation, the teacher
showed select which of the following Dividend Options? - ✔✔Paid-up Additional
Insurance
✔✔P died 5 years later after purchasing a life policy. While investigating the claim, the
insurer discovered material misrepresentations made by P during the application
process. Which of these actions will the insurer take? - ✔✔Beneficiary will be paid the
Death Benefit
✔✔K applies for a life insurance policy on herself and submits the initial premium with
the application. She is given a receipt by the agent stating that coverage begins
immediately if the application is approved. What kind of receipt was used? -
✔✔Conditional
✔✔A life insurance arrangement which circumvents (avoid) insurable interest statutes is
called - ✔✔Investor-Originated Life Insurance
, ✔✔How do life insurance companies handle cases where the insured commits suicide
within the contract's stated contestable period? - ✔✔Claims are denied under the
Suicide Clause (1 year) of the policy
✔✔Which action can a policy owner take if an application for a bank loan requires
collateral? - ✔✔Assign policy ownership to the bank
✔✔All of these insurance products require an agent to have proper FINRA securities
registration in order to sell them EXCEPT for - ✔✔Modified Whole Life
✔✔J let her life insurance policy lapse 8 months ago due to nonpayment. She can
reestablish coverage under which of the following provisions? - ✔✔Reinstatement
Provision
✔✔One becomes eligible for Social Security disability benefits after having been
disabled for - ✔✔5 months
✔✔How long does the coverage normally remain on limited-pay life policy? - ✔✔Age
100
✔✔W is a 39-year old female who just purchased an annuity to provide income for life
starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n) -
✔✔Immediate annuity
✔✔What does the Ownership Clause in a life insurance policy state? - ✔✔Who the
policy owner is and what rights the policy owner is entitled to
✔✔An agent that has been or is engaged in conduct that violates the Insurance
Information and Privacy Protection Act shall be issued and served a statement of
charges and notice of hearing by the Commissioner of Insurance. The date of such
hearing shall be AT LEAST how many days after service of charges? - ✔✔10
✔✔No insurer shall refuse to issue an individual policy because of - ✔✔Race
✔✔An insurance company MUST clearly specify questions designed to obtain
information solely for marketing research - ✔✔In any insurance transaction
✔✔An annuity promises that, if the annuitant dies before receiving payments equal to
the correct value, the payments will be continued to a beneficiary until an amount equal
to the contract value has been paid. This type of annuity is called - ✔✔An Installment
Refund annuity
AND ANSWERS SURE A+
✔✔Which of these arrangements allows one to bypass insurable interest laws? -
✔✔Investor-Originated Life Insurance
✔✔A father who dies within 3 years after purchasing a life insurance policy on his infant
daughter can have the policy premiums waived under which provision? - ✔✔Payor
provision
✔✔Which of the following correctly explains the actions an agent should take if a
customer wants to apply for a insurance company? - ✔✔Complete the application and
review the information with the customer prior to obtaining the customer's signature,
then send the application off to the insurance company
✔✔An insured is past due on his life insurance premium, but is still within the Grace
Period. What will the beneficiary receive if the insured dies during this Grace Period? -
✔✔Full face amount minus any past due premiums
✔✔The premiums paid by an employer for his employee's group life insurance are
usually considered to be - ✔✔Tax-deductible to the employer
✔✔An IRA owner can start making withdrawals and NOT be subjected to a tax penalty
beginning at what age? - ✔✔59 1/2
✔✔A young, married teacher has 2 children and owns a Whole Life Policy. If the
teacher wants an increasing death benefit to protect against inflation, the teacher
showed select which of the following Dividend Options? - ✔✔Paid-up Additional
Insurance
✔✔P died 5 years later after purchasing a life policy. While investigating the claim, the
insurer discovered material misrepresentations made by P during the application
process. Which of these actions will the insurer take? - ✔✔Beneficiary will be paid the
Death Benefit
✔✔K applies for a life insurance policy on herself and submits the initial premium with
the application. She is given a receipt by the agent stating that coverage begins
immediately if the application is approved. What kind of receipt was used? -
✔✔Conditional
✔✔A life insurance arrangement which circumvents (avoid) insurable interest statutes is
called - ✔✔Investor-Originated Life Insurance
, ✔✔How do life insurance companies handle cases where the insured commits suicide
within the contract's stated contestable period? - ✔✔Claims are denied under the
Suicide Clause (1 year) of the policy
✔✔Which action can a policy owner take if an application for a bank loan requires
collateral? - ✔✔Assign policy ownership to the bank
✔✔All of these insurance products require an agent to have proper FINRA securities
registration in order to sell them EXCEPT for - ✔✔Modified Whole Life
✔✔J let her life insurance policy lapse 8 months ago due to nonpayment. She can
reestablish coverage under which of the following provisions? - ✔✔Reinstatement
Provision
✔✔One becomes eligible for Social Security disability benefits after having been
disabled for - ✔✔5 months
✔✔How long does the coverage normally remain on limited-pay life policy? - ✔✔Age
100
✔✔W is a 39-year old female who just purchased an annuity to provide income for life
starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n) -
✔✔Immediate annuity
✔✔What does the Ownership Clause in a life insurance policy state? - ✔✔Who the
policy owner is and what rights the policy owner is entitled to
✔✔An agent that has been or is engaged in conduct that violates the Insurance
Information and Privacy Protection Act shall be issued and served a statement of
charges and notice of hearing by the Commissioner of Insurance. The date of such
hearing shall be AT LEAST how many days after service of charges? - ✔✔10
✔✔No insurer shall refuse to issue an individual policy because of - ✔✔Race
✔✔An insurance company MUST clearly specify questions designed to obtain
information solely for marketing research - ✔✔In any insurance transaction
✔✔An annuity promises that, if the annuitant dies before receiving payments equal to
the correct value, the payments will be continued to a beneficiary until an amount equal
to the contract value has been paid. This type of annuity is called - ✔✔An Installment
Refund annuity
