NC LIFE INSURANCE EXAM PREP
QUESTIONS AND ANSWERS LATEST
UPDATE 2026/2027
An agent who sells an individual life insurance policy in NC MUST deliver to the
policyowner - CORRECT ANSWER ✔✔- A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT - CORRECT
ANSWER ✔✔- Sharing commissions with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide? -
CORRECT ANSWER ✔✔- Premiums are waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance -
CORRECT ANSWER ✔✔- 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? - CORRECT ANSWER ✔✔- 18
In a life insurance policy, which feature states that the policy will not cover certain
risks? - CORRECT ANSWER ✔✔- Exclusion
Whole Life insurance are contractually guaranteed to provide each of the following
EXCEPT? - CORRECT ANSWER ✔✔- Partial withdrawal features beyond a
surrender charge period
1|Page
,A term life insurance policy matures - CORRECT ANSWER ✔✔- Upon the
insured's death during the term of the policy
Which of these provisions require proof of insurability after a policy has lapsed? -
CORRECT ANSWER ✔✔- Reinstatement
How does a typical Variable Life Policy Investment account grow? - CORRECT
ANSWER ✔✔- 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 - CORRECT ANSWER ✔✔- Defamation
All of the following are considered characteristics describing the nature of an
insurance contract EXCEPT - CORRECT ANSWER ✔✔- Bilateral
A 15-year mortgage is best protected by what kind of life policy? - CORRECT
ANSWER ✔✔- 15-year decreasing term
Companies in NC may transact solicitations for insurance ONLY through -
CORRECT ANSWER ✔✔- Licensed agents
Which of these retirement plans can be started by an employee, even if another
plan is in existence - CORRECT ANSWER ✔✔- Individual Retirement Account
(IRA)
2|Page
, A life policy with a death benefit that can fluctuate according to the performance
of its underlying investment portfolio is referred to as - CORRECT ANSWER
✔✔- Variable life
If an annuity is terminated prior to the beginning of the income payment period,
the contract owner receives - CORRECT ANSWER ✔✔- 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 - CORRECT ANSWER
✔✔- Policy Loan Provision
When does a Guaranteed Insurability Rider allow the insured to buy additional
coverage? - CORRECT ANSWER ✔✔- 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? - CORRECT ANSWER ✔✔-
Income that cannot be outlived by the owner
A level premium indicates - CORRECT ANSWER ✔✔- 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? - CORRECT ANSWER ✔✔- Daughter
3|Page
QUESTIONS AND ANSWERS LATEST
UPDATE 2026/2027
An agent who sells an individual life insurance policy in NC MUST deliver to the
policyowner - CORRECT ANSWER ✔✔- A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT - CORRECT
ANSWER ✔✔- Sharing commissions with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide? -
CORRECT ANSWER ✔✔- Premiums are waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance -
CORRECT ANSWER ✔✔- 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? - CORRECT ANSWER ✔✔- 18
In a life insurance policy, which feature states that the policy will not cover certain
risks? - CORRECT ANSWER ✔✔- Exclusion
Whole Life insurance are contractually guaranteed to provide each of the following
EXCEPT? - CORRECT ANSWER ✔✔- Partial withdrawal features beyond a
surrender charge period
1|Page
,A term life insurance policy matures - CORRECT ANSWER ✔✔- Upon the
insured's death during the term of the policy
Which of these provisions require proof of insurability after a policy has lapsed? -
CORRECT ANSWER ✔✔- Reinstatement
How does a typical Variable Life Policy Investment account grow? - CORRECT
ANSWER ✔✔- 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 - CORRECT ANSWER ✔✔- Defamation
All of the following are considered characteristics describing the nature of an
insurance contract EXCEPT - CORRECT ANSWER ✔✔- Bilateral
A 15-year mortgage is best protected by what kind of life policy? - CORRECT
ANSWER ✔✔- 15-year decreasing term
Companies in NC may transact solicitations for insurance ONLY through -
CORRECT ANSWER ✔✔- Licensed agents
Which of these retirement plans can be started by an employee, even if another
plan is in existence - CORRECT ANSWER ✔✔- Individual Retirement Account
(IRA)
2|Page
, A life policy with a death benefit that can fluctuate according to the performance
of its underlying investment portfolio is referred to as - CORRECT ANSWER
✔✔- Variable life
If an annuity is terminated prior to the beginning of the income payment period,
the contract owner receives - CORRECT ANSWER ✔✔- 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 - CORRECT ANSWER
✔✔- Policy Loan Provision
When does a Guaranteed Insurability Rider allow the insured to buy additional
coverage? - CORRECT ANSWER ✔✔- 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? - CORRECT ANSWER ✔✔-
Income that cannot be outlived by the owner
A level premium indicates - CORRECT ANSWER ✔✔- 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? - CORRECT ANSWER ✔✔- Daughter
3|Page
