1
NC Life Insurance Exam Prep Questions and
Answers|2025 Update | 100% Correct.
An agent who sells an individual life insurance policy in NC MUST deliver to the
policyowner - (answers)A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT - (answers)Sharing
commissions with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide? -
(answers)Premiums are waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance -
(answers)Is guilty of a misdemeanor
A person is required to be AT LEAST how old before he or she is licensed as an
agent in NC? - (answers)18
In a life insurance policy, which feature states that the policy will not cover certain
risks? - (answers)Exclusion
Whole Life insurance are contractually guaranteed to provide each of the
following EXCEPT? - (answers)Partial withdrawal features beyond a surrender
charge period
, 2
A term life insurance policy matures - (answers)Upon the insured's death during
the term of the policy
Which of these provisions require proof of insurability after a policy has lapsed? -
(answers)Reinstatement
How does a typical Variable Life Policy Investment account grow? -
(answers)Through mutual funds, stocks, and bonds
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 - (answers)Defamation
All of the following are considered characteristics describing the nature of an
insurance contract EXCEPT - (answers)Bilateral
A 15-year mortgage is best protected by what kind of life policy? - (answers)15-
year decreasing term
Companies in NC may transact solicitations for insurance ONLY through -
(answers)Licensed agents
Which of these retirement plans can be started by an employee, even if another
plan is in existence - (answers)Individual Retirement Account (IRA)
, 3
A life policy with a death benefit that can fluctuate according to the performance
of its underlying investment portfolio is referred to as - (answers)Variable life
If an annuity is terminated prior to the beginning of the income payment period,
the contract owner receives - (answers)The contract surrender value at that time
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 - (answers)Policy Loan
Provision
When does a Guaranteed Insurability Rider allow the insured to buy additional
coverage? - (answers)At future dates specified in the contract with no evidence of
insurability required
T, age 70, withdrawals cash from a profit-sharing plan and purchases a Straight
Life Annuity. What will this transaction provide? - (answers)Income that cannot
be outlived by the owner
A level premium indicates - (answers)The premium is fixed for the entire duration
of the contract
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? - (answers)Daughter
, 4
Which of the following statements is correct about the period in which a Term
Policy can be converted? - (answers)It can be changed by the insured
What group term life feature permits an individual to depart from the group and
continue to be converted without providing evidence of insurability? -
(answers)Conversion
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? - (answers)Proceed will go to the contingent beneficiary
S buys a $10,000 Whole Life Policy in 2003 and pays an annual premium of $100.
S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What
kind of rider did S include on the policy? - (answers)Return of Premium rider
One of the stated purposes of the Life and Health Insurance Guaranty Association
is to - (answers)Assist in the prevention of insurer insolvencies
The following acts are examples of unfair methods of competition and deceptive
practices in the business of insurance EXCEPT the use for - (answers)Comparisons
showing that a policy has higher benefits
Which of the following policies combines investment choices with a form of Term
coverage? - (answers)Variable universal life
NC Life Insurance Exam Prep Questions and
Answers|2025 Update | 100% Correct.
An agent who sells an individual life insurance policy in NC MUST deliver to the
policyowner - (answers)A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT - (answers)Sharing
commissions with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide? -
(answers)Premiums are waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance -
(answers)Is guilty of a misdemeanor
A person is required to be AT LEAST how old before he or she is licensed as an
agent in NC? - (answers)18
In a life insurance policy, which feature states that the policy will not cover certain
risks? - (answers)Exclusion
Whole Life insurance are contractually guaranteed to provide each of the
following EXCEPT? - (answers)Partial withdrawal features beyond a surrender
charge period
, 2
A term life insurance policy matures - (answers)Upon the insured's death during
the term of the policy
Which of these provisions require proof of insurability after a policy has lapsed? -
(answers)Reinstatement
How does a typical Variable Life Policy Investment account grow? -
(answers)Through mutual funds, stocks, and bonds
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 - (answers)Defamation
All of the following are considered characteristics describing the nature of an
insurance contract EXCEPT - (answers)Bilateral
A 15-year mortgage is best protected by what kind of life policy? - (answers)15-
year decreasing term
Companies in NC may transact solicitations for insurance ONLY through -
(answers)Licensed agents
Which of these retirement plans can be started by an employee, even if another
plan is in existence - (answers)Individual Retirement Account (IRA)
, 3
A life policy with a death benefit that can fluctuate according to the performance
of its underlying investment portfolio is referred to as - (answers)Variable life
If an annuity is terminated prior to the beginning of the income payment period,
the contract owner receives - (answers)The contract surrender value at that time
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 - (answers)Policy Loan
Provision
When does a Guaranteed Insurability Rider allow the insured to buy additional
coverage? - (answers)At future dates specified in the contract with no evidence of
insurability required
T, age 70, withdrawals cash from a profit-sharing plan and purchases a Straight
Life Annuity. What will this transaction provide? - (answers)Income that cannot
be outlived by the owner
A level premium indicates - (answers)The premium is fixed for the entire duration
of the contract
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? - (answers)Daughter
, 4
Which of the following statements is correct about the period in which a Term
Policy can be converted? - (answers)It can be changed by the insured
What group term life feature permits an individual to depart from the group and
continue to be converted without providing evidence of insurability? -
(answers)Conversion
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? - (answers)Proceed will go to the contingent beneficiary
S buys a $10,000 Whole Life Policy in 2003 and pays an annual premium of $100.
S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What
kind of rider did S include on the policy? - (answers)Return of Premium rider
One of the stated purposes of the Life and Health Insurance Guaranty Association
is to - (answers)Assist in the prevention of insurer insolvencies
The following acts are examples of unfair methods of competition and deceptive
practices in the business of insurance EXCEPT the use for - (answers)Comparisons
showing that a policy has higher benefits
Which of the following policies combines investment choices with a form of Term
coverage? - (answers)Variable universal life
