NC LIFE INSURANCE EXAM PREP UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

NC LIFE INSURANCE EXAM PREP UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS

Question:
1. An agent who sells an individual life insurance policy in NC MUST deliver to the policyowner
Answer:
A policy summary and buyer's guide

Question:
2. All of the following actions are considered rebating EXCEPT
Answer:
Sharing commissions with other licensed and appointed agents

Question:
3. What benefit does the Payor Clause on a Juvenile Life Policy provide?
Answer:
Premiums are waived if payor becomes disabled

Question:
4. An agent who signs a blank contract application or policy of insurance
Answer:
Is guilty of a misdemeanor

Question:
5. A person is required to be AT LEAST how old before he or she is licensed as an agent in NC?
Answer:
18

Question:
6. In a life insurance policy, which feature states that the policy will not cover certain risks?
Answer:
Exclusion

Question:
7. Whole Life insurance are contractually guaranteed to provide each of the following EX- CEPT?
Answer:
Partial withdrawal features beyond a surrender charge period

Question:
8. A term life insurance policy matures
Answer:
Upon the insured's death during the term of the policy

Question:
9. Which of these provisions require proof of insurability after a policy has lapsed?

,Answer:
Reinstatement

Question:
10. How does a typical Variable Life Policy Investment account grow?
Answer:
Through mutual funds, stocks, and bonds

Question:
11. 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
Answer:
Defamation

Question:
12. All of the following are considered characteristics describing the nature of an insurance contract
EXCEPT
Answer:
Bilateral

Question:
13. A 15-year mortgage is best protected by what kind of life policy?
Answer:
15-year decreasing term

Question:
14. Companies in NC may transact solicitations for insurance ONLY through
Answer:
Licensed agents

Question:
15. Which of these retirement plans can be started by an employee, even if another plan is in existence
Answer:
Individual Retirement Account (IRA)

Question:
16. A life policy with a death benefit that can fluctuate according to the performance of its underlying
investment portfolio is referred to as
Answer:
Variable life

Question:
17. If an annuity is terminated prior to the beginning of the income payment period, the contract owner
receives
Answer:
The contract surrender value at that time

, Question:
18. A provision in a life insurance policy that pays the policy owner an amount that doesn't surpass the
guaranteed cash value is called the
Answer:
Policy Loan Provision

Question:
19. When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?
Answer:
At future dates specified in the contract with no evidence of insurability required

Question:
20. T, age 70, withdrawals cash from a profit-sharing plan and purchases a Straight Life Annuity. What
will this transaction provide?
Answer:
Income that cannot be outlived by the owner

Question:
21. A level premium indicates
Answer:
The premium is fixed for the entire duration of the contract

Question:
22. K has a life insurance policy where her husband is beneficiary and her daughter is contingent
beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile
accident, where would the death proceeds be directed?
Answer:
Daughter

Question:
23. Which of the following statements is correct about the period in which a Term Policy can be
converted?
Answer:
It can be changed by the insured

Question:
24. What group term life feature permits an individual to depart from the group and continue to be
converted without providing evidence of insurability?
Answer:
Conversion

Question:
25. An insured covered by life insurance has just died. What will happen if the primary beneficiary had
already died before the insured and contingent beneficiary?
Answer:
Proceed will go to the contingent beneficiary