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