NC Life Exam Simulation Exam fully solved & updated 2025-2026(latest
version verified for accuracy) | 2024\2025Latest!!
1. Which of the following actions require a policyowner ANSWER: increase face
to provide proof of insurability in an Adjustable Life amount
policy?
2. 2. If the Commissioner of insurance finds that a li- ANSWER: suspend, re-
censed person has used fraudulent, coercive, or dis- voke, or refuse to renew
honest practices or has proved to be incompetent, the agent's license
untrustworthy, or financially irresponsible, the law al-
lows the Commissioner to
3. 3. A Whole Life Insurance Policy endows when the: ANSWER: Cash value
equals the death benefit
4. 4. A provision in a life insurance policy that pays the ANSWER: Policy Loan pro-
policyowner an amount that does not surpass the vision
guaranteed cash value is called the:
5. 5. The Life and Health Insurance Guaranty Association ANSWER: becomes insol-
becomes involved in an insurance company's affairs vent
when the company
6. 6. If a contract of adhesion contains complicated lan- ANSWER: Insured
guage, to whom would the interpretation be in favor
of?
7. 7. M purchases a $70,000 Life Insurance Policy with ANSWER: Adjustable Life
premium payments of $550 a year for the first 5 years.
At the beginning of the sixth year, the premium will
increase to $800 per year but will remain level there-
after. The face amount will remain at $70,000 through-
out the life of the policy. The type of policy that M has
purchased is:
, NC Life Exam Simulation Exam fully solved & updated 2025-2026(latest
version verified for accuracy) | 2024\2025Latest!!
8. 8. Which parts of a life insurance policy are guaran- ANSWER: Warranty
teed to be true?
9. 9. Q applied for life insurance and submitted the initial ANSWER: Policy was
premium on January 1. The policy was issued February returned within the
1, but it was not delivered by the agent until February free-look period, premi-
7. Q is dissatisfied and returns the policy February 13. um will be fully refunded
How will the insurer handle this situation?
10. 10. Which of these types of policies may NOT have the ANSWER: Decreasing
Automatic Premium Loan provision attached to it? Term
11. 11. Which of the following consists of an offer, accep- ANSWER: Contract
tance, and consideration?
12. 12. According to North Carolina's rules on disclosure, ANSWER: a Buyer's Guide
a life insurance applicant is expected to be provided and Policy Summary
with
13. 13. Which of the following statements about noncon- ANSWER: A minimum
tributory employee group life insurance is FALSE? number of employees is
required to participate
14. 14. The automatic premium loan provision is designed ANSWER: avoid a policy
to: lapse
15. 15. The amount received for a life insurance policy in ANSWER: Less than the
a viatical settlement is death benefit
16. 16. If after satisfactory proof of loss, an insurer fails or ANSWER: 30
refuses to pay death proceeds, the insurer must pay
interest on the proceeds after how many days?
, NC Life Exam Simulation Exam fully solved & updated 2025-2026(latest
version verified for accuracy) | 2024\2025Latest!!
17. 17. When a life insurance policy exceeds certain IRS ANSWER: Modified En-
table values, the result would create which of the fol- dowment Contract (MEC)
lowing?
18. 18. A written agreement to provide a Life Insurance ANSWER: Viatical Settle-
Policy holder immediate cash in exchange for the sale ment
and transfer of a Life Insurance Policy is a
19. 19. The annuity that represents the largest possible ANSWER: Straight Life an-
monthly payment to an individual annuitant is a(n): nuity
20. 20. The fund that assures policyholders payment of ANSWER: Life and Health
death benefits on Life Policies, if the company is insol- Insurance Guaranty Asso-
vent at the time of the claim, is called the ciation
21. 21. The most important factor to consider when de- ANSWER: the cost
termining whether to convert term insurance at the
insured's attained age or the insured's original age is:
22. 22. Which of these is NOT considered to be an element ANSWER: negotiating
of an insurance contract?
23. 23. J is 35-years old and looking to purchase a whole ANSWER: 20-pay Life
life insurance policy. Which of the following types of
policies will provide the most rapid growth of cash
value?
24. 24. A trustee-to-trustee transfer of rollover funds in a ANSWER: mandatory in-
qualified plan allows a participant to avoid: come tax withholding on
the transfer amount
25. 25. A policyowner is allowed to pay premiums more ANSWER: Mode of Premi-
than once a year under which provision? um
version verified for accuracy) | 2024\2025Latest!!
1. Which of the following actions require a policyowner ANSWER: increase face
to provide proof of insurability in an Adjustable Life amount
policy?
2. 2. If the Commissioner of insurance finds that a li- ANSWER: suspend, re-
censed person has used fraudulent, coercive, or dis- voke, or refuse to renew
honest practices or has proved to be incompetent, the agent's license
untrustworthy, or financially irresponsible, the law al-
lows the Commissioner to
3. 3. A Whole Life Insurance Policy endows when the: ANSWER: Cash value
equals the death benefit
4. 4. A provision in a life insurance policy that pays the ANSWER: Policy Loan pro-
policyowner an amount that does not surpass the vision
guaranteed cash value is called the:
5. 5. The Life and Health Insurance Guaranty Association ANSWER: becomes insol-
becomes involved in an insurance company's affairs vent
when the company
6. 6. If a contract of adhesion contains complicated lan- ANSWER: Insured
guage, to whom would the interpretation be in favor
of?
7. 7. M purchases a $70,000 Life Insurance Policy with ANSWER: Adjustable Life
premium payments of $550 a year for the first 5 years.
At the beginning of the sixth year, the premium will
increase to $800 per year but will remain level there-
after. The face amount will remain at $70,000 through-
out the life of the policy. The type of policy that M has
purchased is:
, NC Life Exam Simulation Exam fully solved & updated 2025-2026(latest
version verified for accuracy) | 2024\2025Latest!!
8. 8. Which parts of a life insurance policy are guaran- ANSWER: Warranty
teed to be true?
9. 9. Q applied for life insurance and submitted the initial ANSWER: Policy was
premium on January 1. The policy was issued February returned within the
1, but it was not delivered by the agent until February free-look period, premi-
7. Q is dissatisfied and returns the policy February 13. um will be fully refunded
How will the insurer handle this situation?
10. 10. Which of these types of policies may NOT have the ANSWER: Decreasing
Automatic Premium Loan provision attached to it? Term
11. 11. Which of the following consists of an offer, accep- ANSWER: Contract
tance, and consideration?
12. 12. According to North Carolina's rules on disclosure, ANSWER: a Buyer's Guide
a life insurance applicant is expected to be provided and Policy Summary
with
13. 13. Which of the following statements about noncon- ANSWER: A minimum
tributory employee group life insurance is FALSE? number of employees is
required to participate
14. 14. The automatic premium loan provision is designed ANSWER: avoid a policy
to: lapse
15. 15. The amount received for a life insurance policy in ANSWER: Less than the
a viatical settlement is death benefit
16. 16. If after satisfactory proof of loss, an insurer fails or ANSWER: 30
refuses to pay death proceeds, the insurer must pay
interest on the proceeds after how many days?
, NC Life Exam Simulation Exam fully solved & updated 2025-2026(latest
version verified for accuracy) | 2024\2025Latest!!
17. 17. When a life insurance policy exceeds certain IRS ANSWER: Modified En-
table values, the result would create which of the fol- dowment Contract (MEC)
lowing?
18. 18. A written agreement to provide a Life Insurance ANSWER: Viatical Settle-
Policy holder immediate cash in exchange for the sale ment
and transfer of a Life Insurance Policy is a
19. 19. The annuity that represents the largest possible ANSWER: Straight Life an-
monthly payment to an individual annuitant is a(n): nuity
20. 20. The fund that assures policyholders payment of ANSWER: Life and Health
death benefits on Life Policies, if the company is insol- Insurance Guaranty Asso-
vent at the time of the claim, is called the ciation
21. 21. The most important factor to consider when de- ANSWER: the cost
termining whether to convert term insurance at the
insured's attained age or the insured's original age is:
22. 22. Which of these is NOT considered to be an element ANSWER: negotiating
of an insurance contract?
23. 23. J is 35-years old and looking to purchase a whole ANSWER: 20-pay Life
life insurance policy. Which of the following types of
policies will provide the most rapid growth of cash
value?
24. 24. A trustee-to-trustee transfer of rollover funds in a ANSWER: mandatory in-
qualified plan allows a participant to avoid: come tax withholding on
the transfer amount
25. 25. A policyowner is allowed to pay premiums more ANSWER: Mode of Premi-
than once a year under which provision? um
