NC Life Insurance
Study online at https://quizlet.com/_i209e2
1. What is the agent required to do when a policy Obtain a signed acceptance policy
is changed?
2. Who does a 3rd party contract consist of? Policyowner, insured, and the in-
surer
3. What is the primary source of underwriting? The application
4. What makes up a unilateral contract? Exchange of an act for a promise
5. When an applicant makes changes on the ap- Initial Changes
plication after it has been signed, they must do
what?
6. What are the elements of a valid contract? Consideration, competent parties,
and agreement (offer and accep-
tance, legal form and legal pur-
pose)
7. What is the insured's consideration as part of a Statements on application and
contract? payment of initial premium
8. What is the insurer's consideration as part of a The promise to pay
contract?
9. What additional license is required to sell vari- Variable Life and Annuity FINRA Li-
able products? cense
10. How long after proof of loss is received does 30 days
the insurer have to pay benefits before interest
begins to add on?
11. How long after and individual leaves their group 31 days
plan do they have to switch to an individual plan
, NC Life Insurance
Study online at https://quizlet.com/_i209e2
and not be required to show proof of insurabili-
ty?
12. What is a foreign insurance company Any US insurance company not
based in the state of business
13. Will an agent be held personally liable for con- Yes
tracts written by the agent while representing
and unauthorized (non-admitted) company?
14. Can you use the Guaranty Association as part of No
your sales pitch?
15. If the insurer is going to use a non-public source Notice of Information Practices and
as part of the underwriting, which two docu- the Disclosure Authorization
ments must be provided at the time of applica-
tion?
16. How long must the insurer maintain policyown- 5 years from date of last use
er files/records
17. Making derogatory statements against another Defamation
company with the intent to damage their repu-
tation is known as:
18. How long does an appointment with a company As long as the is is licensed and the
remain in effect? appoint insurer is authorized
19. What is one of the requirements to become a Pass 20-hour pre-licensing class
life/health agent
20. When does using a cost index to compare prod- When they are similar products
ucts work?
, NC Life Insurance
Study online at https://quizlet.com/_i209e2
21. Can an agent sign a blank policy? No, it is a misdemeanor
22. Why is universal life considered interest-sen- Cash value earns interest on cur-
sative? rent interest rates, not guaranteed
rates
23. How often is interest credited to a universal life Monthly
policy account?
24. What does adding a term rider to a base whole Face value and death benefit in-
life policy do to the death benefit? crease
25. What is another term for mortality cost? Cost of insurance
26. What are the key characteristics of Universal life Target premium, unbundling, cor-
ridor of insurance, flexibility, or sur-
render charge
27. What kind of products does "separate account" Variable products
refer to?
28. What happens if the insured dies during the Face amount is payable minus the
grace period of a term policy outstanding premium
29. What happens if the primary beneficiary prede- The benefits will be payable to the
ceases the insured? contingent bene
30. When the endorsement method is used by the The policy and change of bene
insurer what two things must be submitted by form
the policyowner?
31. What happens to the face amount of a policy It is reduced
when premiums are paid out under the Auto-
matic Premium Loan (APL) provision?
Study online at https://quizlet.com/_i209e2
1. What is the agent required to do when a policy Obtain a signed acceptance policy
is changed?
2. Who does a 3rd party contract consist of? Policyowner, insured, and the in-
surer
3. What is the primary source of underwriting? The application
4. What makes up a unilateral contract? Exchange of an act for a promise
5. When an applicant makes changes on the ap- Initial Changes
plication after it has been signed, they must do
what?
6. What are the elements of a valid contract? Consideration, competent parties,
and agreement (offer and accep-
tance, legal form and legal pur-
pose)
7. What is the insured's consideration as part of a Statements on application and
contract? payment of initial premium
8. What is the insurer's consideration as part of a The promise to pay
contract?
9. What additional license is required to sell vari- Variable Life and Annuity FINRA Li-
able products? cense
10. How long after proof of loss is received does 30 days
the insurer have to pay benefits before interest
begins to add on?
11. How long after and individual leaves their group 31 days
plan do they have to switch to an individual plan
, NC Life Insurance
Study online at https://quizlet.com/_i209e2
and not be required to show proof of insurabili-
ty?
12. What is a foreign insurance company Any US insurance company not
based in the state of business
13. Will an agent be held personally liable for con- Yes
tracts written by the agent while representing
and unauthorized (non-admitted) company?
14. Can you use the Guaranty Association as part of No
your sales pitch?
15. If the insurer is going to use a non-public source Notice of Information Practices and
as part of the underwriting, which two docu- the Disclosure Authorization
ments must be provided at the time of applica-
tion?
16. How long must the insurer maintain policyown- 5 years from date of last use
er files/records
17. Making derogatory statements against another Defamation
company with the intent to damage their repu-
tation is known as:
18. How long does an appointment with a company As long as the is is licensed and the
remain in effect? appoint insurer is authorized
19. What is one of the requirements to become a Pass 20-hour pre-licensing class
life/health agent
20. When does using a cost index to compare prod- When they are similar products
ucts work?
, NC Life Insurance
Study online at https://quizlet.com/_i209e2
21. Can an agent sign a blank policy? No, it is a misdemeanor
22. Why is universal life considered interest-sen- Cash value earns interest on cur-
sative? rent interest rates, not guaranteed
rates
23. How often is interest credited to a universal life Monthly
policy account?
24. What does adding a term rider to a base whole Face value and death benefit in-
life policy do to the death benefit? crease
25. What is another term for mortality cost? Cost of insurance
26. What are the key characteristics of Universal life Target premium, unbundling, cor-
ridor of insurance, flexibility, or sur-
render charge
27. What kind of products does "separate account" Variable products
refer to?
28. What happens if the insured dies during the Face amount is payable minus the
grace period of a term policy outstanding premium
29. What happens if the primary beneficiary prede- The benefits will be payable to the
ceases the insured? contingent bene
30. When the endorsement method is used by the The policy and change of bene
insurer what two things must be submitted by form
the policyowner?
31. What happens to the face amount of a policy It is reduced
when premiums are paid out under the Auto-
matic Premium Loan (APL) provision?
