NC Life Insurance Licensing
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1. What type of life insurance refers to temporary cover- 4) Blanket insurance poli-
age of a specific hazard for a specific group? cies
1) LTC insurance
2) Limited insurance policies
3) Indemnity insurance policies
4) Blanket insurance policies
2. During a presentation, the producer should NOT: 4) ask for a referral
1) educate the client by explaining
2) motivate the client
3) discuss a policy's limitations
4) ask for a referral
3. In 2011, the limit on employee deferrals to a 401(k) 4) $16,500
plan is $_______ a year. $22,000 for those age 50
1) $14,000 and older
2) $14,500
3) $15,500
4) $16,500
4. The _________ designation means that the beneficiary 2) irrevocable
cannot be changed without the named beneficiary's
permisison.
1) revocable
2) irrevocable
3) substantial
4) menial
5. Which of the following life policies contain fixed and 1) Whole Life
guaranteed mortality rates AND fixed and guaranteed
cash value?
1) Whole Life
, NC Life Insurance Licensing
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2) Variable Life
3) Universal Life
4) Variable Universal Life
6. Which of the following are typically excluded in life 4) All of the above
insurance policies?
1) Suicide
2) War or military service
3) Hazardous occupation or hobby
4) All of the above
7. T or F: The purpose of Social Security is to provide a False
meaningful standard of living as a person ages. The SS Act was original-
ly enacted to enable in-
dividual states to make
more adequate provisions
to furnish financial assis-
tance to the aged, blind,
dependent and crippled
children, and other quali-
fied individuals
8. The _________ means that the life insurance policy 4) Entire Contract provi-
along with the application represents the complete sion
contract.
1) Rights of Ownership provision
2) Change of Beneficiary clause
3) Consideration clause
4) Entire Contract provision
9. Charles wants an annuity that provides income for he 1) Joint and Full Survivor
and his wife, Emma. If he should predecease Emma, Option
he wants her to receive the same income payments
, NC Life Insurance Licensing
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for the rest of her life. Which type of annuity payout
option should he select?
1) Joint and Full Survivor Option
2) Life with Period Certain Option
3) Joint and One-Half Survivor Option
4) Cash Refund Option
10. Harriet, age 45, suffered an accident while waterskiing 2) Social Security
on vacation and became paralyzed from the accident. Harriet is under age 65
Which of the following would most likely pay her dis- (excluding Medicare), was
ability benefits? not working when ac-
1) Medicare cident occurred (exclud-
2) Social Security ing workers' comp), and
3) Workers' Compensation was no vacation (exclud-
4) Medicaid ing Medicaid for low-in-
come)
11. What type of life insurance is the principally pur- 1) Ordinary life insurance
chased life policy in the U.S.?
1) Ordinary life insurance
2) Term insurance
3) Endowment insurance
12. Which of the following is NOT a typical permanent 2) Suicide
exclusion in life insurance policies? Most suicide exclusions
1) Aviation are enforced until 2 years
2) Suicide after the policy's effective
3) Acts of war date
4) Self-inflicted injuries
13. The ________ determines the life insurance policy's 2) policyowner
beneficiary.
1) insured
, NC Life Insurance Licensing
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2) policyowner
3) insurer
14. An SEP differs from an IRA in that you can contribute 2) larger
___________ amount to an SEP in one year. The max amount that can
1) a much smaller be contributed to an em-
2) larger ployee's SEP is the less-
er of 25% of the em-
ployee's annual compen-
sation (up to $230,000 or
$446,000 in 2008 - up
from $225,000 or $45,000
in 2007)
15. Mass marketing involves exposure to large groups Licensed agents
of people through such methods as advertisement,
commercials, mass mailouts, etc. _________ is/are not
involved in this process of selling.
1) vending machines
2) licensed agents
3) television
4) radio
16. Accumulation units are converted into annuity units: 1) at the time of annuity
1) at the time of annuity payout payout
2) when the annuitant makes a written request
3) when the annuity is surrendered early
4) at the time of early distribution
17. T or F: A licensee may request in writing an extension True
of time before the last month of the licensee's compli-
ance year.
Study online at https://quizlet.com/_dx2jtn
1. What type of life insurance refers to temporary cover- 4) Blanket insurance poli-
age of a specific hazard for a specific group? cies
1) LTC insurance
2) Limited insurance policies
3) Indemnity insurance policies
4) Blanket insurance policies
2. During a presentation, the producer should NOT: 4) ask for a referral
1) educate the client by explaining
2) motivate the client
3) discuss a policy's limitations
4) ask for a referral
3. In 2011, the limit on employee deferrals to a 401(k) 4) $16,500
plan is $_______ a year. $22,000 for those age 50
1) $14,000 and older
2) $14,500
3) $15,500
4) $16,500
4. The _________ designation means that the beneficiary 2) irrevocable
cannot be changed without the named beneficiary's
permisison.
1) revocable
2) irrevocable
3) substantial
4) menial
5. Which of the following life policies contain fixed and 1) Whole Life
guaranteed mortality rates AND fixed and guaranteed
cash value?
1) Whole Life
, NC Life Insurance Licensing
Study online at https://quizlet.com/_dx2jtn
2) Variable Life
3) Universal Life
4) Variable Universal Life
6. Which of the following are typically excluded in life 4) All of the above
insurance policies?
1) Suicide
2) War or military service
3) Hazardous occupation or hobby
4) All of the above
7. T or F: The purpose of Social Security is to provide a False
meaningful standard of living as a person ages. The SS Act was original-
ly enacted to enable in-
dividual states to make
more adequate provisions
to furnish financial assis-
tance to the aged, blind,
dependent and crippled
children, and other quali-
fied individuals
8. The _________ means that the life insurance policy 4) Entire Contract provi-
along with the application represents the complete sion
contract.
1) Rights of Ownership provision
2) Change of Beneficiary clause
3) Consideration clause
4) Entire Contract provision
9. Charles wants an annuity that provides income for he 1) Joint and Full Survivor
and his wife, Emma. If he should predecease Emma, Option
he wants her to receive the same income payments
, NC Life Insurance Licensing
Study online at https://quizlet.com/_dx2jtn
for the rest of her life. Which type of annuity payout
option should he select?
1) Joint and Full Survivor Option
2) Life with Period Certain Option
3) Joint and One-Half Survivor Option
4) Cash Refund Option
10. Harriet, age 45, suffered an accident while waterskiing 2) Social Security
on vacation and became paralyzed from the accident. Harriet is under age 65
Which of the following would most likely pay her dis- (excluding Medicare), was
ability benefits? not working when ac-
1) Medicare cident occurred (exclud-
2) Social Security ing workers' comp), and
3) Workers' Compensation was no vacation (exclud-
4) Medicaid ing Medicaid for low-in-
come)
11. What type of life insurance is the principally pur- 1) Ordinary life insurance
chased life policy in the U.S.?
1) Ordinary life insurance
2) Term insurance
3) Endowment insurance
12. Which of the following is NOT a typical permanent 2) Suicide
exclusion in life insurance policies? Most suicide exclusions
1) Aviation are enforced until 2 years
2) Suicide after the policy's effective
3) Acts of war date
4) Self-inflicted injuries
13. The ________ determines the life insurance policy's 2) policyowner
beneficiary.
1) insured
, NC Life Insurance Licensing
Study online at https://quizlet.com/_dx2jtn
2) policyowner
3) insurer
14. An SEP differs from an IRA in that you can contribute 2) larger
___________ amount to an SEP in one year. The max amount that can
1) a much smaller be contributed to an em-
2) larger ployee's SEP is the less-
er of 25% of the em-
ployee's annual compen-
sation (up to $230,000 or
$446,000 in 2008 - up
from $225,000 or $45,000
in 2007)
15. Mass marketing involves exposure to large groups Licensed agents
of people through such methods as advertisement,
commercials, mass mailouts, etc. _________ is/are not
involved in this process of selling.
1) vending machines
2) licensed agents
3) television
4) radio
16. Accumulation units are converted into annuity units: 1) at the time of annuity
1) at the time of annuity payout payout
2) when the annuitant makes a written request
3) when the annuity is surrendered early
4) at the time of early distribution
17. T or F: A licensee may request in writing an extension True
of time before the last month of the licensee's compli-
ance year.
