North Carolina Insurance Exam Questions with Detailed Verified Answers

North Carolina Insurance Exam Questions with
Detailed Verified Answers
For which of the following reasons may an insured return the policy for a full refund
within the Free Look Period?




A

Increase in premium




B

Death of the agent




C

Decline in financial rating of the insurance company




D

Any reason Ans: Any reason

Which of the following statements is FALSE regarding Credit Life Insurance?

,A

The creditor must apply the insurance proceeds to the discharge of the loan




B

The insurance will terminate if the debt is prepaid or refinanced




C

Usually the individual debtor pays the premium monthly




D

The amount of coverage is dependent upon the duration of the loan Ans: The amount
of coverage is dependent upon the duration of the loan

In which of the following plans does the company assume all of the investment risk?




A


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,Defined contribution




B

Defined benefit




C

Simplified Employee Pension (SEP)




D

Profit-sharing Ans: Defined benefit

Upon annuitizing an annuity, all of the following factors help in determining the amount
of the income benefit payment, except:




A

Settlement option




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, B

Gender




C

State of residence




D

Age Ans: State of residence

Which of the following is a type of rating that does not involve an extra premium being
assessed?




A

The lien plan




B

The flat rate


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