NC Life And Health Insurance Study Questions With Correct Answers 100% Verified

NC Life And Health Insurance Study Questions With Correct Answers 100% Verified A 20-year family income policy was purchased effective April 1, 2001. The insured died four months later, on August 1, 2001. The beneficiary receives monthly income for A. 10 years. B. 19 years and 8 months. C. 9 years and 8 months. D. 20 years. - Answer B Monthly benefits paid for the remainder of the 20 year benefit period. A deferred annuity is surrendered prior to annuitization. Which of the following best describes the nonforfeiture value of the annuity? A. The surrender value will not be more than 80% of the cash value in the annuity at the time of surrender. B. The surrender value should be equal to 100% of the premium paid, minus any prior withdrawals and surrender charges. C. A deferred annuity cannot be surrendered prior to annuitization. The owner must wait until the annuitization period begins to receive any payments. D. The surrender value will be based on current interest rates. - Answer B A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums? A. The insured's premiums will be waived until she is 21. B. The premiums will become tax deductible until the insured's 18th birthday. C. Since it is the policyowner, and not the insured, who has become disabled, the life insurance policy will not be affected. D. The insured will have to pay premiums for 6 months. If at the end of this period the father is still disabled, the insured will be refunded the premiums. - Answer A A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums? A. The insured's premiums will be waived until she is 21. B. The premiums will become tax deductible until the insured's 18th birthday. C. Since it is the policyowner, and not the insured, who has become disabled, the life insurance policy will not be affected. D. The insured will have to pay premiums for 6 months. If at the end of this period the father is still disabled, the insured will be refunded the premiums. - Answer A If the payor (usually a parent or guardian) becomes disabled for at least 6 months or dies, the insurer will waive the premiums until the minor reaches a certain age, such as 21. A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium? A. If the daughter is disabled for more than 3 months B. If the daughter is disabled for any length of time C. If the father is disabled for more than 6 months D. If the father is disabled for at least a year - Answer C Payor benefit only pays if the owner, the father in this example, is disabled for at least 6 months. A friend helped an insurance producer sell an insurance policy. The producer can share the commission with the friend if A. The Commissioner gives the producer verbal permission to share. B. The producer applies for a shared commission form for that fiscal year. C. The friend is licensed in the same line of insurance. D. The friend is licensed in any type of insurance. - Answer C A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why? A. The purpose of the group was to purchase life insurance. B. Their profession poses too high of a risk for the insurer. C. There are not enough people in the group to qualify for group life insurance. D. The group has not been established for long enough. - Answer A A group policy used to provide accident and health coverage on a group of persons being transported by a common carrier, without naming the insured persons individually is called A. Blanket Policy. B. Activity policy. C. Specified disease policy. D. Certificate of Coverage Policy. - Answer A A guaranteed renewable health insurance policy allows the A. Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class. B. Policyholder to renew the policy to a stated age and guarantees the premium for the same period. C. Policy to be renewed at time of expiration, but the policy can be canceled for cause during the policy term. D. Insurer to renew the policy to a specified age. - Answer A