NC life and health insurance study
questions 2026 with answers
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
A10 years.
B19 years and 8 months.
C9 years and 8 months.
D20 years. - Correct 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?
AThe surrender value will not be more than 80% of the cash value in the annuity at
the time of surrender.
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,BThe surrender value should be equal to 100% of the premium paid, minus any
prior withdrawals and surrender charges.
CA deferred annuity cannot be surrendered prior to annuitization. The owner must
wait until the annuitization period begins to receive any payments.
DThe surrender value will be based on current interest rates. - Correct 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?
AThe insured's premiums will be waived until she is 21.
BThe premiums will become tax deductible until the insured's 18th birthday.
CSince it is the policyowner, and not the insured, who has become disabled, the
life insurance policy will not be affected.
DThe 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. - Correct
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?
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,AThe insured's premiums will be waived until she is 21.
BThe premiums will become tax deductible until the insured's 18th birthday.
CSince it is the policyowner, and not the insured, who has become disabled, the
life insurance policy will not be affected.
DThe 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. - Correct
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?
AIf the daughter is disabled for more than 3 months
BIf the daughter is disabled for any length of time
CIf the father is disabled for more than 6 months
DIf the father is disabled for at least a year - Correct Answer -C
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, 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
AThe Commissioner gives the producer verbal permission to share.
BThe producer applies for a shared commission form for that fiscal year.
CThe friend is licensed in the same line of insurance.
DThe friend is licensed in any type of insurance. - Correct 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?
AThe purpose of the group was to purchase life insurance.
BTheir profession poses too high of a risk for the insurer.
CThere are not enough people in the group to qualify for group life insurance.
DThe group has not been established for long enough. - Correct Answer -A
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questions 2026 with answers
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
A10 years.
B19 years and 8 months.
C9 years and 8 months.
D20 years. - Correct 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?
AThe surrender value will not be more than 80% of the cash value in the annuity at
the time of surrender.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 1
,BThe surrender value should be equal to 100% of the premium paid, minus any
prior withdrawals and surrender charges.
CA deferred annuity cannot be surrendered prior to annuitization. The owner must
wait until the annuitization period begins to receive any payments.
DThe surrender value will be based on current interest rates. - Correct 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?
AThe insured's premiums will be waived until she is 21.
BThe premiums will become tax deductible until the insured's 18th birthday.
CSince it is the policyowner, and not the insured, who has become disabled, the
life insurance policy will not be affected.
DThe 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. - Correct
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?
©COPYRIGHT 2025 ALL RIGHTS RESERVED 2
,AThe insured's premiums will be waived until she is 21.
BThe premiums will become tax deductible until the insured's 18th birthday.
CSince it is the policyowner, and not the insured, who has become disabled, the
life insurance policy will not be affected.
DThe 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. - Correct
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?
AIf the daughter is disabled for more than 3 months
BIf the daughter is disabled for any length of time
CIf the father is disabled for more than 6 months
DIf the father is disabled for at least a year - Correct Answer -C
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, 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
AThe Commissioner gives the producer verbal permission to share.
BThe producer applies for a shared commission form for that fiscal year.
CThe friend is licensed in the same line of insurance.
DThe friend is licensed in any type of insurance. - Correct 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?
AThe purpose of the group was to purchase life insurance.
BTheir profession poses too high of a risk for the insurer.
CThere are not enough people in the group to qualify for group life insurance.
DThe group has not been established for long enough. - Correct Answer -A
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