NC Life Exam Questions With 100% Correct Answers 2024

NC Life Exam Questions With 100% Correct Answers 2024 Post-tax dollar contributions are found in: - answerRoth IRA investments How do life insurance companies handle cases where the insured commits suicide within the contract's stated Contestable period? - answerClaims are denied under the Suicide clause of the policy Variable Whole Life Insurance can be described as: - answerboth an insurance and securities product An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective? - answerWhen the conditions of the receipt are met Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? - answerVariable Life On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective? - answerJanuary 26 Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE? - answerEvidence of insurability is required when the option is exercised Any vacancy of the Commissioner of Insurance position must be filled by a(n) - answerGovernor appointment A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need? - answerIrrevocable Variable annuities may invest premiums in each of the following, EXCEPT: - answerInsurer's corporate business account Which of these is NOT considered to be a cost connected with an individual's death? - answerBusiness expenses An agent soliciting insurance policies in North Carolina MUST be - answerappointed by an authorized insurer in North Carolina When must insurable interest exist for a life insurance contract to be valid? - answerInception of the contract C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most? - answerThe cost What type of group insurance plan involves employees sharing the cost? - answercontributory plan A variable insurance policy: - answerdoes not guarantee a return on its investment accounts N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid-up at retirement. Which of these should N purchase? - answer30 Pay Life S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase? - answerEquity index insurance Which of these is NOT relevant when determining the amount of personal life insurance needed? - answerLocal unemployment rate What is the consideration given by an insurer in the Consideration clause of a life policy? - answerPromise to pay a death benefit to a named beneficiary In a Key Employee life insurance policy, the third-party owner can be all of the following, EXCEPT: - answerInsured How long does the coverage normally remain on a limited-pay life policy - answerage 100 When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take? - answerVoid the policy only if it is discovered during the Contestable period and proven to be material ABC Insurance Company fails to pay death proceeds after satisfactory proof of loss was submitted. ABC must then begin paying interest on the death proceeds after ______ days of receiving proof of loss - answer30 When an existing life insurance policy is terminated so that a new life insurance policy can be purchased, this transaction is referred to as - answerReplacement Credit Life insurance is: - answerissued in an amount not to exceed the amount of the loan Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? - answerVariable Lif