LIFE INSURANCE PRACTICE- EXAM GUIDE 2025
|MOST COMMON QUESTIONS WITH CORRECTLY
VERIFIED ANSWERS|ALREADY A+
GRADED|GUARANTEED PASS
Which of the following is not an unfair method of competition or deceptive practice ? -
Demonstrating that a policy has higher benefits by using a comparison
An insurance company formed under the laws of Canada would be known in North Carolina as -
an alien company
An applicant may not be refused insurance coverage due to - race
if a blank insurance contract application is signed by an agent, the agent - is guilty of a
misdemeanor
An insurance applicant was recently denied insurance coverage. The applicant is requesting
access from the insurer to recorded personal information regarding the decision. Under the info
and privacy protection act, the insurer must make the info available within how many business
days - 30
An agent inducing an insured to lapse, forfeit, or surrender insurance through
misrepresentation is coming the illegal act of - twisting
S is a life insurance policy owner and enters into a written agreement to receive immediate cash
in exchange for the sale and transfer of her life insurance policy. This agreement is referred to as
an - Viatical settlement
An agent who suggests that an insured surrender a life insurance policy in order to purchase a
new policy would be subject to which of the following - Replacement provision
In North Carolina which of the following must be delivered to a policyowner soon the sale of an
individual life insurance policy - A policy summary and buyers guide
The commissioner may issue an annually renewable ______ valid for representing an insurer in
a foreign country or on a us military base - restricted license
,ABC insurance company fails to pay death proceeds after satisfactory proof of loss was
submitted. ABS must then begin paying interest on the death proceeds after__ days of receiving
proof of loss - 30
An example of false advertising would be - an insurer exaggerating its dividend in a
magazine advertisiment
At what point during a transacting does a nonresident need a licensed resident agent in
countersign any documents, policies, applications, or other insurance forms - at no point
a life insurance company becomes insolvent, the fund that guarantees policyowners payment of
death benefits is known as the - Life and health insurance guaranty association
Before accepting the initial premium for a prearranged funeral contact, the agent must make
these disclosures except - the amount of commission the agent will receive
the life and health insurance guaranty association becomes involved in an insurance company
affairs when the company - becomes insolvent
in north carolina an insurance agent is best defined as - a person who sells, solicits, or
negotiates contacts of insurance or annuity
if the commissioner of insurance is no longer able to complete the term of office who is
required to fill this vacancy - Governor
Z is an agent who violated the insurance info and policy protection act. Z was then issued and
served a statement of charges and notice of hearing by the commissioner of insurance. Z's
hearing date must be at least ___ days after the service of charges - 10
K sent a renewal premium payment to her insurer that would extend her coverage beyond the
policy maximum age limit. If the insurer accepts this premium payment, it - must
continue the coverage to the end of the period of time for which the premium was accepted
If an agent is found to be incompetent, untrustworthy, or financially irresponsible, the
commissioner may/n - suspend, revoke, or refuse to renew the agents license
the purpose of the rules of governing life insurance and annuity replacements is to -
reduce the opportunity for misrepresentation and incomplete disclosure
immunity for releasing documents to the commissioner during a fraud investigation means that
person - is not subject to civil liability or slander
the commissioner of insurance is responsible for - administering insurance laws
,How is the life and health insurance guaranty associated funded - from member
companies
how long must every insurance agent maintain all records, books, and documents related to
each insurance transaction - every 5 years
the circulation of written literature that is maliciously critical of an insurers financial condition is
called an - defamation
which of the following is not regulated by the insurance info and privacy protection act -
insurance regulators
the primary purpose of the life insurance replacement regulation is to protect the -
interests of policy owners
an insurance company formed under nc laws is referenced to as an - domestic company
when an existing life insurance policy is terminated so that a new life insurance policy can be
purchased, this transaction is referred to as - replacement
an individual life insurance policy issued in nc must have a grace period for premium payment of
how many days - 31
when an existing life insurance policy is being reissued with a reduction in cash value the agent
must sign the - notice regarding of life insurance or annuity
the life and health insurance guaranty association is funded by the authorized insurers in this
state, one of the roles of this organization is - assist in the prevention of insurer
insolvencies
a key employee policy is taken out by company x on its vice president. Ten years later, this
employee leaves company x and begins working for company y. If this individual were to die and
the policy is still in force and unchanged, where would the death proceeds be directed -
company x
Q is severely injured in an automobile accident and becomes totally disabled. How many
months must Q be disabled before being able to apply for social Security disability benefits -
5 months
which of the following is not an unfair method of competition or deceptive practice? -
demonstrating that a policy has higher benefits by using a comparison
, when must insurable interest exist for a life insurance contact too be valid - inception of
the contact
company z has cross purchase buy sell agreement in place among its three founding partners. If
the agreement is funded with individual life insurance, what would it require - each
partner must own a policy on the other partners
when must insurable interest be present in order for a life insurance policy to be valid -
when the application is made
which of the following features of a group term life policy enables an individual to leave the
group and continue his or her insurance without providing evidence of insurability -
conversion privilege
a loss purchase buy and sell agreement among three partners, funded with individual life
insurance would require how many policies - 6
which statement is correct regarding the premium payment schedule for whole life policies -
premiums are payable throughout the insureds lifetime/ coverage lasts until death of the
insured
which of the following types of insurance is exempt from the rules governing life insurance and
annuity replacements - credit life
how is the life and health insurance guaranty funded - member companies
which statement is true regarding a variable whole life policy - a minimum guaranteed
health benefit is provided
d was acting severely in the marines when he was killed in an automobile accident while on
leave. His 100,00 whole life policy contains a war exclusion clause. How much will D's
beneficiary's receive - the full face amount
an immediate annuity consists of a - single premium
if an annuity is terminated prior to beginning of the income payment period, the contract owner
receives - the contract surrender value at the time
under the North Carolina insurance code, an insurance company must pay death benefits for
suicide if the policy has been in force for a minimum of - two years
in North Carolina an agent obtains his/her license from the - commissioner of insurance
|MOST COMMON QUESTIONS WITH CORRECTLY
VERIFIED ANSWERS|ALREADY A+
GRADED|GUARANTEED PASS
Which of the following is not an unfair method of competition or deceptive practice ? -
Demonstrating that a policy has higher benefits by using a comparison
An insurance company formed under the laws of Canada would be known in North Carolina as -
an alien company
An applicant may not be refused insurance coverage due to - race
if a blank insurance contract application is signed by an agent, the agent - is guilty of a
misdemeanor
An insurance applicant was recently denied insurance coverage. The applicant is requesting
access from the insurer to recorded personal information regarding the decision. Under the info
and privacy protection act, the insurer must make the info available within how many business
days - 30
An agent inducing an insured to lapse, forfeit, or surrender insurance through
misrepresentation is coming the illegal act of - twisting
S is a life insurance policy owner and enters into a written agreement to receive immediate cash
in exchange for the sale and transfer of her life insurance policy. This agreement is referred to as
an - Viatical settlement
An agent who suggests that an insured surrender a life insurance policy in order to purchase a
new policy would be subject to which of the following - Replacement provision
In North Carolina which of the following must be delivered to a policyowner soon the sale of an
individual life insurance policy - A policy summary and buyers guide
The commissioner may issue an annually renewable ______ valid for representing an insurer in
a foreign country or on a us military base - restricted license
,ABC insurance company fails to pay death proceeds after satisfactory proof of loss was
submitted. ABS must then begin paying interest on the death proceeds after__ days of receiving
proof of loss - 30
An example of false advertising would be - an insurer exaggerating its dividend in a
magazine advertisiment
At what point during a transacting does a nonresident need a licensed resident agent in
countersign any documents, policies, applications, or other insurance forms - at no point
a life insurance company becomes insolvent, the fund that guarantees policyowners payment of
death benefits is known as the - Life and health insurance guaranty association
Before accepting the initial premium for a prearranged funeral contact, the agent must make
these disclosures except - the amount of commission the agent will receive
the life and health insurance guaranty association becomes involved in an insurance company
affairs when the company - becomes insolvent
in north carolina an insurance agent is best defined as - a person who sells, solicits, or
negotiates contacts of insurance or annuity
if the commissioner of insurance is no longer able to complete the term of office who is
required to fill this vacancy - Governor
Z is an agent who violated the insurance info and policy protection act. Z was then issued and
served a statement of charges and notice of hearing by the commissioner of insurance. Z's
hearing date must be at least ___ days after the service of charges - 10
K sent a renewal premium payment to her insurer that would extend her coverage beyond the
policy maximum age limit. If the insurer accepts this premium payment, it - must
continue the coverage to the end of the period of time for which the premium was accepted
If an agent is found to be incompetent, untrustworthy, or financially irresponsible, the
commissioner may/n - suspend, revoke, or refuse to renew the agents license
the purpose of the rules of governing life insurance and annuity replacements is to -
reduce the opportunity for misrepresentation and incomplete disclosure
immunity for releasing documents to the commissioner during a fraud investigation means that
person - is not subject to civil liability or slander
the commissioner of insurance is responsible for - administering insurance laws
,How is the life and health insurance guaranty associated funded - from member
companies
how long must every insurance agent maintain all records, books, and documents related to
each insurance transaction - every 5 years
the circulation of written literature that is maliciously critical of an insurers financial condition is
called an - defamation
which of the following is not regulated by the insurance info and privacy protection act -
insurance regulators
the primary purpose of the life insurance replacement regulation is to protect the -
interests of policy owners
an insurance company formed under nc laws is referenced to as an - domestic company
when an existing life insurance policy is terminated so that a new life insurance policy can be
purchased, this transaction is referred to as - replacement
an individual life insurance policy issued in nc must have a grace period for premium payment of
how many days - 31
when an existing life insurance policy is being reissued with a reduction in cash value the agent
must sign the - notice regarding of life insurance or annuity
the life and health insurance guaranty association is funded by the authorized insurers in this
state, one of the roles of this organization is - assist in the prevention of insurer
insolvencies
a key employee policy is taken out by company x on its vice president. Ten years later, this
employee leaves company x and begins working for company y. If this individual were to die and
the policy is still in force and unchanged, where would the death proceeds be directed -
company x
Q is severely injured in an automobile accident and becomes totally disabled. How many
months must Q be disabled before being able to apply for social Security disability benefits -
5 months
which of the following is not an unfair method of competition or deceptive practice? -
demonstrating that a policy has higher benefits by using a comparison
, when must insurable interest exist for a life insurance contact too be valid - inception of
the contact
company z has cross purchase buy sell agreement in place among its three founding partners. If
the agreement is funded with individual life insurance, what would it require - each
partner must own a policy on the other partners
when must insurable interest be present in order for a life insurance policy to be valid -
when the application is made
which of the following features of a group term life policy enables an individual to leave the
group and continue his or her insurance without providing evidence of insurability -
conversion privilege
a loss purchase buy and sell agreement among three partners, funded with individual life
insurance would require how many policies - 6
which statement is correct regarding the premium payment schedule for whole life policies -
premiums are payable throughout the insureds lifetime/ coverage lasts until death of the
insured
which of the following types of insurance is exempt from the rules governing life insurance and
annuity replacements - credit life
how is the life and health insurance guaranty funded - member companies
which statement is true regarding a variable whole life policy - a minimum guaranteed
health benefit is provided
d was acting severely in the marines when he was killed in an automobile accident while on
leave. His 100,00 whole life policy contains a war exclusion clause. How much will D's
beneficiary's receive - the full face amount
an immediate annuity consists of a - single premium
if an annuity is terminated prior to beginning of the income payment period, the contract owner
receives - the contract surrender value at the time
under the North Carolina insurance code, an insurance company must pay death benefits for
suicide if the policy has been in force for a minimum of - two years
in North Carolina an agent obtains his/her license from the - commissioner of insurance
