NC Life Exam Simulation 200 Question with Complete Solutions 2024/2025

NC Life Exam Simulation 200 Question with Complete Solutions 2024/2025 Which of the following actions require a policyowner to provide proof of insurability in an Adjustable Life policy? ANS-ANSWER: increase face amount 2. If the Commissioner of insurance finds that a licensed person has used fraudulent, coercive, or dishonest practices or has proved to be incompetent, untrustworthy, or financially irresponsible, the law allows the Commissioner to ANS-ANSWER: suspend, revoke, or refuse to renew the agent's license 3. A Whole Life Insurance Policy endows when the: ANS-ANSWER: Cash value equals the death benefit 4. A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the: ANS-ANSWER: Policy Loan provision 5. The Life and Health Insurance Guaranty Association becomes involved in an insurance company's affairs when the company ANS-ANSWER: becomes insolvent 6. If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of? ANS-ANSWER: Insured 7. M purchases a $70,000 Life Insurance Policy with premium payments of $550 a year for the first 5 years. At the beginning of the sixth year, the premium will increase to $800 per year but will remain level thereafter. The face amount will remain at $70,000 throughout the life of the policy. The type of policy that M has purchased is: ANS-ANSWER: Adjustable Life 8. Which parts of a life insurance policy are guaranteed to be true? ANS-ANSWER: Warranty 9. Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation? ANS-ANSWER: Policy was returned within the free-look period, premium will be fully refunded 10. Which of the