NC LIFE INSURANCE EXAM PREP NEW AND UPDATED
2026 |WITH VERIFIED QUESTIONS AND ANSWERS!!!
An agent who sells an individual life insurance policy in NC MUST
deliver to the policyowner
A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT
Sharing commissions with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide?
Premiums are waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance
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?
18
In a life insurance policy, which feature states that the policy will not
cover certain risks?
Exclusion
Whole Life insurance are contractually guaranteed to provide each of
the following EXCEPT?
Partial withdrawal features beyond a surrender charge period
A term life insurance policy matures
,Upon the insured's death during the term of the policy
Which of these provisions require proof of insurability after a policy has
lapsed?
Reinstatement
How does a typical Variable Life Policy Investment account grow?
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
Defamation
All of the following are considered characteristics describing the nature
of an insurance contract EXCEPT
Bilateral
A 15-year mortgage is best protected by what kind of life policy?
15-year decreasing term
Companies in NC may transact solicitations for insurance ONLY through
Licensed agents
Which of these retirement plans can be started by an employee, even if
another plan is in existence
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
Variable life
,If an annuity is terminated prior to the beginning of the income
payment period, the contract owner receives
The contract surrender value at that time
What type of life policy covers 2 people and pays upon the death of the
last insured?
Survivorship
K works for XYZ clothing store from September through December each
year. K works 4 hours a week for this period of time. The employer's
Group Policy would consider K
Not eligible for the insurance because as a seasonal employee K doesn't
meet the definition of "employee" under NC law
A written agreement to provide a Life Insurance Policyholder immediate
cash in exchange for the sale and transfer of a Life Insurance Policy is a
Viatical Settlement
When an employee is terminated, which statement about a group term
life conversion is true?
Policy proceeds will be paid if the employee dies during the conversion
period
A 42 year old executive wants to purchase life insurance that will allow
for increases or decreases to coverage as his/her needs change. Which
of the following policies will best meet this need?
Universal life
, What kind of life insurance policy pays a specified monthly income to a
beneficiary for 30 years and then pays a lump sum benefit at the end of
that 30 years?
Family Maintenance Policy
The fund that assures policyholders payment of death benefits on Life
Policies, if the company is insolvent at the same time of the claim, is
called the
Life and Health Insurance Guaranty Association
A policy that becomes a Modified Endowment Contract (MEC)
Will lose many of its tax advantage
Which provision allows the policy owner to change a term life policy to
a permanent one without providing proof of health?
Conversion
T applies for a life insurance policy and is told by the producer that the
insurer is bound to the coverage as of the date of the application or
medical examination, whichever is later. Assuming that T is an
acceptable risk, what item is given to T?
Conditional receipt; Binds the insurer to coverage as of the date of the
application or medical exam, provided the proposed insured is
determined to be an acceptable risk.
An insurance company MUST clearly specify questions designed to
obtain information solely for marketing research
In any insurance transactions
2026 |WITH VERIFIED QUESTIONS AND ANSWERS!!!
An agent who sells an individual life insurance policy in NC MUST
deliver to the policyowner
A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT
Sharing commissions with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide?
Premiums are waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance
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?
18
In a life insurance policy, which feature states that the policy will not
cover certain risks?
Exclusion
Whole Life insurance are contractually guaranteed to provide each of
the following EXCEPT?
Partial withdrawal features beyond a surrender charge period
A term life insurance policy matures
,Upon the insured's death during the term of the policy
Which of these provisions require proof of insurability after a policy has
lapsed?
Reinstatement
How does a typical Variable Life Policy Investment account grow?
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
Defamation
All of the following are considered characteristics describing the nature
of an insurance contract EXCEPT
Bilateral
A 15-year mortgage is best protected by what kind of life policy?
15-year decreasing term
Companies in NC may transact solicitations for insurance ONLY through
Licensed agents
Which of these retirement plans can be started by an employee, even if
another plan is in existence
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
Variable life
,If an annuity is terminated prior to the beginning of the income
payment period, the contract owner receives
The contract surrender value at that time
What type of life policy covers 2 people and pays upon the death of the
last insured?
Survivorship
K works for XYZ clothing store from September through December each
year. K works 4 hours a week for this period of time. The employer's
Group Policy would consider K
Not eligible for the insurance because as a seasonal employee K doesn't
meet the definition of "employee" under NC law
A written agreement to provide a Life Insurance Policyholder immediate
cash in exchange for the sale and transfer of a Life Insurance Policy is a
Viatical Settlement
When an employee is terminated, which statement about a group term
life conversion is true?
Policy proceeds will be paid if the employee dies during the conversion
period
A 42 year old executive wants to purchase life insurance that will allow
for increases or decreases to coverage as his/her needs change. Which
of the following policies will best meet this need?
Universal life
, What kind of life insurance policy pays a specified monthly income to a
beneficiary for 30 years and then pays a lump sum benefit at the end of
that 30 years?
Family Maintenance Policy
The fund that assures policyholders payment of death benefits on Life
Policies, if the company is insolvent at the same time of the claim, is
called the
Life and Health Insurance Guaranty Association
A policy that becomes a Modified Endowment Contract (MEC)
Will lose many of its tax advantage
Which provision allows the policy owner to change a term life policy to
a permanent one without providing proof of health?
Conversion
T applies for a life insurance policy and is told by the producer that the
insurer is bound to the coverage as of the date of the application or
medical examination, whichever is later. Assuming that T is an
acceptable risk, what item is given to T?
Conditional receipt; Binds the insurer to coverage as of the date of the
application or medical exam, provided the proposed insured is
determined to be an acceptable risk.
An insurance company MUST clearly specify questions designed to
obtain information solely for marketing research
In any insurance transactions
