NC LIFE LAWS AND RULES PREP EXAM UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

NC LIFE LAWS AND RULES PREP EXAM UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS

Question:
1. Life insurance replacement regulation is designed to protect the interests of beneficiaries insurers
policyowners agents
Answer:
Life insurance replacement regulation is designed to protect the interests of beneficiaries insurers
policyowners agents

Question:
2. S is a life insurance policyowner and enters into a written agreement to receive immediate cash in
exchange for the sale and transfer of her life insurance policy. This agreement is referred to as a(n) 1035
Exchange Cash Conversion Viatical Settlement Equity Cash Arrangement
Answer:
S is a life insurance policyowner and enters into a written agreement to receive immediate cash in
exchange for the sale and transfer of her life insurance policy. This agreement is referred to as a(n) 1035
Exchange Cash Conversion Viatical Settlement Equity Cash Arrangement

Question:
3. What is the standard grace period for premium payments on all individual life insurance policies issued
in North Carolina? 30 days 31 days 20 days 15 days
Answer:
What is the standard grace period for premium payments on all individual life insurance policies issued in
North Carolina? 30 days 31 days 20 days 15 days

Question:
4. When can a lapsed individual life insurance policy be reinstated? Within 3 years Within 2 years Within
4 years Within 5 years
Answer:
When can a lapsed individual life insurance policy be reinstated? Within 3 years Within 2 years Within 4
years Within 5 years

Question:
5. An agent must complete ___ biennial continuing education credit hours to maintain his/her license. 24
48 12 6
Answer:
An agent must complete ___ biennial continuing education credit hours to maintain his/her license. 24 48
12 6

Question:
6. An agent soliciting insurance policies in North Carolina MUST be appointed by an authorized insurer in
North Carolina bonded for at least $500,000 certified by the Governor at least 21 years old

, Answer:
An agent soliciting insurance policies in North Carolina MUST be appointed by an authorized insurer in
North Carolina bonded for at least $500,000 certified by the Governor at least 21 years old

Question:
7. Within ___ years a life policy can be reinstated upon meeting company requirements. 3 4 5 6
Answer:
Within ___ years a life policy can be reinstated upon meeting company requirements. 3 4 5 6

Question:
8. An agent who illegally discounts insurance premium is said to be engaged in discounting rebating
twisting defamation
Answer:
An agent who illegally discounts insurance premium is said to be engaged in discounting rebating twisting
defamation

Question:
9. An applicant may NOT be refused insurance coverage due to age occupation race health
Answer:
An applicant may NOT be refused insurance coverage due to age occupation race health

Question:
10. An individual MUST be a minimum of ___ years of age to be a licensed North Carolina insurance
agent. 19 17 16 18
Answer:
An individual MUST be a minimum of ___ years of age to be a licensed North Carolina insurance agent.
19 17 16 18

Question:
11. An insurance company formed under North Carolina laws is referred to as a(n) foreign company
admitted company domestic company alien company
Answer:
An insurance company formed under North Carolina laws is referred to as a(n) foreign company admitted
company domestic company alien company

Question:
12. Filing a false insurance claim in North Carolina is considered a(n) misdemeanor discernment unfair
trade practice felony
Answer:
Filing a false insurance claim in North Carolina is considered a(n) misdemeanor discernment unfair trade
practice felony

Question:
13. How long must every insurance agent maintain all records, books, and documents related to each
insurance transaction? 6 years 3 years 4 years 5 years