NC LIFE INSURANCE EXAM PREP QUESTIONS AND
ANSWERS GRADED A+ 100% VERIFIED.
An agent who sells an individual life insurance policy in NC MUST deliver
to the policyowner ANS >> A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT ANS >>
Sharing commissions with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide?
ANS >> Premiums are waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance
ANS >> Is guilty of a misdemeanour
A person is required to be AT LEAST how old before he or she is licensed
as an agent in NC? ANS >> 18
,In a life insurance policy, which feature states that the policy will not
cover certain risks? ANS >> Exclusion
Whole Life insurance is contractually guaranteed to provide each of the
following EXCEPT? ANS >> Partial withdrawal features beyond a
surrender charge period
A term life insurance policy matures ANS >> Upon the insured's death
during the term of the policy
Which of these provisions require proof of insurability after a policy has
lapsed? ANS >> Reinstatement
How does a typical Variable Life Policy Investment account grow? ANS >>
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 ANS >> Defamation
All of the following are considered characteristics describing the nature
of an insurance contract EXCEPT ANS >> Bilateral
,A 15-year mortgage is best protected by what kind of life policy? ANS >>
15-year decreasing term
Companies in NC may transact solicitations for insurance ONLY through
ANS >> Licensed agents
Which of these retirement plans can be started by an employee, even if
another plan is in existence ANS >> Individual Retirement Account (IRA)
A life policy with a death benefit that can fluctuate according to the
performance of its underlying investment portfolio is referred to as ANS >>
Variable life
If an annuity is terminated prior to the beginning of the income
payment period, the contract owner receives ANS >> 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 ANS
>> Policy Loan Provision
When does a Guaranteed Insurability Rider allow the insured to buy
additional coverage? ANS >> 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? ANS >> Income
that cannot be outlived by the owner
A level premium indicates ANS >> 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? ANS >> Daughter
Which of the following statements is correct about the period in which a
Term Policy can be converted? ANS >> It can be changed by the insured
What group term life feature permits an individual to depart from the
group and continue to be converted without providing evidence of
insurability? ANS >> Conversion
An insured covered by life insurance has just died. What will happen if
the primary beneficiary had already died before the insured and
contingent beneficiary? ANS >> Proceed will go to the contingent
beneficiary
S buys a $10,000 Whole Life Policy in 2003 and pays an annual premium
of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary
ANSWERS GRADED A+ 100% VERIFIED.
An agent who sells an individual life insurance policy in NC MUST deliver
to the policyowner ANS >> A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT ANS >>
Sharing commissions with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide?
ANS >> Premiums are waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance
ANS >> Is guilty of a misdemeanour
A person is required to be AT LEAST how old before he or she is licensed
as an agent in NC? ANS >> 18
,In a life insurance policy, which feature states that the policy will not
cover certain risks? ANS >> Exclusion
Whole Life insurance is contractually guaranteed to provide each of the
following EXCEPT? ANS >> Partial withdrawal features beyond a
surrender charge period
A term life insurance policy matures ANS >> Upon the insured's death
during the term of the policy
Which of these provisions require proof of insurability after a policy has
lapsed? ANS >> Reinstatement
How does a typical Variable Life Policy Investment account grow? ANS >>
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 ANS >> Defamation
All of the following are considered characteristics describing the nature
of an insurance contract EXCEPT ANS >> Bilateral
,A 15-year mortgage is best protected by what kind of life policy? ANS >>
15-year decreasing term
Companies in NC may transact solicitations for insurance ONLY through
ANS >> Licensed agents
Which of these retirement plans can be started by an employee, even if
another plan is in existence ANS >> Individual Retirement Account (IRA)
A life policy with a death benefit that can fluctuate according to the
performance of its underlying investment portfolio is referred to as ANS >>
Variable life
If an annuity is terminated prior to the beginning of the income
payment period, the contract owner receives ANS >> 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 ANS
>> Policy Loan Provision
When does a Guaranteed Insurability Rider allow the insured to buy
additional coverage? ANS >> 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? ANS >> Income
that cannot be outlived by the owner
A level premium indicates ANS >> 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? ANS >> Daughter
Which of the following statements is correct about the period in which a
Term Policy can be converted? ANS >> It can be changed by the insured
What group term life feature permits an individual to depart from the
group and continue to be converted without providing evidence of
insurability? ANS >> Conversion
An insured covered by life insurance has just died. What will happen if
the primary beneficiary had already died before the insured and
contingent beneficiary? ANS >> Proceed will go to the contingent
beneficiary
S buys a $10,000 Whole Life Policy in 2003 and pays an annual premium
of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary
