NC Life Insurance Exam Prep
Questions and Answers
An agent who sells an individual life insurance policy in NC MUST deliver to
the policyowner - -A policy summary and buyer's guide
- All of the following actions are considered rebating EXCEPT - -Sharing
commissions with other licensed and appointed agents
- What benefit does the Payor Clause on a Juvenile Life Policy provide? - -
Premiums are waived if payor becomes disabled
- An agent who signs a blank contract application or policy of insurance - -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? - -18
- In a life insurance policy, which feature states that the policy will not cover
certain risks? - -Exclusion
- Whole Life insurance are contractually guaranteed to provide each of the
following EXCEPT? - -Partial withdrawal features beyond a surrender charge
period
- A term life insurance policy matures - -Upon the insured's death during the
term of the policy
- Which of these provisions require proof of insurability after a policy has
lapsed? - -Reinstatement
- How does a typical Variable Life Policy Investment account grow? - -
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 - -Defamation
- All of the following are considered characteristics describing the nature of
an insurance contract EXCEPT - -Bilateral
- A 15-year mortgage is best protected by what kind of life policy? - -15-
year decreasing term
, - Companies in NC may transact solicitations for insurance ONLY through - -
Licensed agents
- Which of these retirement plans can be started by an employee, even if
another plan is in existence - -Individual Retirement Account (IRA)
- A life policy with a death benefit that can fluctuate according to the
performance of its underlying investment portfolio is referred to as - -
Variable life
- If an annuity is terminated prior to the beginning of the income payment
period, the contract owner receives - -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 - -Policy Loan
Provision
- When does a Guaranteed Insurability Rider allow the insured to buy
additional coverage? - -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? - -Income that
cannot be outlived by the owner
- A level premium indicates - -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? - -Daughter
- Which of the following statements is correct about the period in which a
Term Policy can be converted? - -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? - -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? - -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? - -Return of
Premium rider
- One of the stated purposes of the Life and Health Insurance Guaranty
Association is to - -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 - -
Comparisons showing that a policy has higher benefits
- Which of the following policies combines investment choices with a form of
Term coverage? - -Variable universal life
- Under a renewable term policy, - -The renewal premium is calculated on
the basis of the insured's attained age
- Additional coverage can be added to a Whole Life policy by adding a(n) - -
Decreasing term rider
- The rules and regulations of the Life and Health Insurance Guaranty
Association in NC apply to - -Life and Health policies insured by companies
authorized in NC
- What type of life policy covers 2 people and pays upon the death of the
last insured? - -Survivorship
- K works for XYZ clothing store from September through December each
year. K works 4 hours a week for this period of time. The employer's Group
Policy would consider K - -Not eligible for the insurance because as a
seasonal employee K doesn't meet the definition of "employee" under NC
law
- A written agreement to provide a Life Insurance Policyholder immediate
cash in exchange for the sale and transfer of a Life Insurance Policy is a - -
Viatical Settlement
- When an employee is terminated, which statement about a group term life
conversion is true? - -Policy proceeds will be paid if the employee dies
during the conversion period
- A 42 year old executive wants to purchase life insurance that will allow for
increases or decreases to coverage as his/her needs change. Which of the
following policies will best meet this need? - -Universal life
Questions and Answers
An agent who sells an individual life insurance policy in NC MUST deliver to
the policyowner - -A policy summary and buyer's guide
- All of the following actions are considered rebating EXCEPT - -Sharing
commissions with other licensed and appointed agents
- What benefit does the Payor Clause on a Juvenile Life Policy provide? - -
Premiums are waived if payor becomes disabled
- An agent who signs a blank contract application or policy of insurance - -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? - -18
- In a life insurance policy, which feature states that the policy will not cover
certain risks? - -Exclusion
- Whole Life insurance are contractually guaranteed to provide each of the
following EXCEPT? - -Partial withdrawal features beyond a surrender charge
period
- A term life insurance policy matures - -Upon the insured's death during the
term of the policy
- Which of these provisions require proof of insurability after a policy has
lapsed? - -Reinstatement
- How does a typical Variable Life Policy Investment account grow? - -
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 - -Defamation
- All of the following are considered characteristics describing the nature of
an insurance contract EXCEPT - -Bilateral
- A 15-year mortgage is best protected by what kind of life policy? - -15-
year decreasing term
, - Companies in NC may transact solicitations for insurance ONLY through - -
Licensed agents
- Which of these retirement plans can be started by an employee, even if
another plan is in existence - -Individual Retirement Account (IRA)
- A life policy with a death benefit that can fluctuate according to the
performance of its underlying investment portfolio is referred to as - -
Variable life
- If an annuity is terminated prior to the beginning of the income payment
period, the contract owner receives - -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 - -Policy Loan
Provision
- When does a Guaranteed Insurability Rider allow the insured to buy
additional coverage? - -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? - -Income that
cannot be outlived by the owner
- A level premium indicates - -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? - -Daughter
- Which of the following statements is correct about the period in which a
Term Policy can be converted? - -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? - -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? - -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? - -Return of
Premium rider
- One of the stated purposes of the Life and Health Insurance Guaranty
Association is to - -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 - -
Comparisons showing that a policy has higher benefits
- Which of the following policies combines investment choices with a form of
Term coverage? - -Variable universal life
- Under a renewable term policy, - -The renewal premium is calculated on
the basis of the insured's attained age
- Additional coverage can be added to a Whole Life policy by adding a(n) - -
Decreasing term rider
- The rules and regulations of the Life and Health Insurance Guaranty
Association in NC apply to - -Life and Health policies insured by companies
authorized in NC
- What type of life policy covers 2 people and pays upon the death of the
last insured? - -Survivorship
- K works for XYZ clothing store from September through December each
year. K works 4 hours a week for this period of time. The employer's Group
Policy would consider K - -Not eligible for the insurance because as a
seasonal employee K doesn't meet the definition of "employee" under NC
law
- A written agreement to provide a Life Insurance Policyholder immediate
cash in exchange for the sale and transfer of a Life Insurance Policy is a - -
Viatical Settlement
- When an employee is terminated, which statement about a group term life
conversion is true? - -Policy proceeds will be paid if the employee dies
during the conversion period
- A 42 year old executive wants to purchase life insurance that will allow for
increases or decreases to coverage as his/her needs change. Which of the
following policies will best meet this need? - -Universal life
