NC LIFE INSURANCE PRACTICE EXAM
ACTUAL PREP QUESTIONS AND WELL
REVISED ANSWERS - LATEST AND COMPLETE
UPDATE WITH VERIFIED SOLUTIONS –
ASSURES PASS
In cases where the Commissioner shall find upon substantial evidence that any
complaint against a company is justified, in addition to any penalties, the company
shall.. - ANSWER: also be liable for the expenses of the investigation
Which of the following is incorrect concerning a noncontributory group plan? -
ANSWER: the employees receive individual policies
how long is a free look period for replacement policies? - ANSWER: 30 days
How long does a North Carolina Agent have to notify the Department of insurance
in the event of a change in residence address? - ANSWER: 10 business days
Which of the following is called a "second to die" policy? - ANSWER:
survivorship life
which of the following policies would have an irs required corridor or gap between
the cash value and the death benefit - ANSWER: universal life - option a
,Variable life insurance is based on what kind of premium? - ANSWER: Level
fixed
Children's riders attached to whole life policies are usually issued as what type of
insurance? - ANSWER: term
twin brothers are starting a new business. They know it will take several years to
build the business to the point that they can pay off the debt incurred in starting the
business. What type of insurance would be the most affordable and still provide a
death benefits should one of them die? - ANSWER: Joint life
which of the following premium payment modes will incur the lowest overall
payment? - ANSWER: Annual
What is the maximum amount on an industrial life policy? - ANSWER: $1000
A rider attached to a life insurance policy that provides coverage on the insured's
family members is called the - ANSWER: Other-insured rider
All of the following are dividend options EXCEPT - ANSWER: Fixed period
installments
,Which of the following types of policies allows the policyowner to skip premium
payments, provided that there is enough cash value in the policy to cover the
premium amount? - ANSWER: universal life
An agent who sells an individual life insurance policy in NC MUST deliver to the
policyowner - ANSWER: A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT - ANSWER:
Sharing commissions with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide? -
ANSWER: Premiums are waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance -
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? - ANSWER: 18
In a life insurance policy, which feature states that the policy will not cover certain
risks? - ANSWER: Exclusion
, When a reduced paid up nonforfeiture option is chosen, what happens to the face
amount of the policy? - ANSWER: It is reduced to the amount of what the cash
value would buy as a single premium
Which of the following are not fundable by annuities? - ANSWER: death benefits
Stating that an insurer's policies are guaranteed by the existence of the Life and
Health Guaranty Association is - ANSWER: An unfair trade practice
group life insurance is a single policy written to provide coverage to members of a
group. Which of the following statements concerning group life is correct? -
ANSWER: 100% participation of members is required in noncontributory plans
In modified life policies, what happens to the premium? - ANSWER: It is level at
the beginning but increases after the first few years
all other factors being equal, what would the premium be like in a survivorship life
policy as compared to the premium in a joint life policy? - ANSWER: Lower
The type of insurance sold to a debtor and designed to pay the amount due on a
loan if the debtor dies before the loan is repaid is called - ANSWER: credit life
ACTUAL PREP QUESTIONS AND WELL
REVISED ANSWERS - LATEST AND COMPLETE
UPDATE WITH VERIFIED SOLUTIONS –
ASSURES PASS
In cases where the Commissioner shall find upon substantial evidence that any
complaint against a company is justified, in addition to any penalties, the company
shall.. - ANSWER: also be liable for the expenses of the investigation
Which of the following is incorrect concerning a noncontributory group plan? -
ANSWER: the employees receive individual policies
how long is a free look period for replacement policies? - ANSWER: 30 days
How long does a North Carolina Agent have to notify the Department of insurance
in the event of a change in residence address? - ANSWER: 10 business days
Which of the following is called a "second to die" policy? - ANSWER:
survivorship life
which of the following policies would have an irs required corridor or gap between
the cash value and the death benefit - ANSWER: universal life - option a
,Variable life insurance is based on what kind of premium? - ANSWER: Level
fixed
Children's riders attached to whole life policies are usually issued as what type of
insurance? - ANSWER: term
twin brothers are starting a new business. They know it will take several years to
build the business to the point that they can pay off the debt incurred in starting the
business. What type of insurance would be the most affordable and still provide a
death benefits should one of them die? - ANSWER: Joint life
which of the following premium payment modes will incur the lowest overall
payment? - ANSWER: Annual
What is the maximum amount on an industrial life policy? - ANSWER: $1000
A rider attached to a life insurance policy that provides coverage on the insured's
family members is called the - ANSWER: Other-insured rider
All of the following are dividend options EXCEPT - ANSWER: Fixed period
installments
,Which of the following types of policies allows the policyowner to skip premium
payments, provided that there is enough cash value in the policy to cover the
premium amount? - ANSWER: universal life
An agent who sells an individual life insurance policy in NC MUST deliver to the
policyowner - ANSWER: A policy summary and buyer's guide
All of the following actions are considered rebating EXCEPT - ANSWER:
Sharing commissions with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide? -
ANSWER: Premiums are waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance -
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? - ANSWER: 18
In a life insurance policy, which feature states that the policy will not cover certain
risks? - ANSWER: Exclusion
, When a reduced paid up nonforfeiture option is chosen, what happens to the face
amount of the policy? - ANSWER: It is reduced to the amount of what the cash
value would buy as a single premium
Which of the following are not fundable by annuities? - ANSWER: death benefits
Stating that an insurer's policies are guaranteed by the existence of the Life and
Health Guaranty Association is - ANSWER: An unfair trade practice
group life insurance is a single policy written to provide coverage to members of a
group. Which of the following statements concerning group life is correct? -
ANSWER: 100% participation of members is required in noncontributory plans
In modified life policies, what happens to the premium? - ANSWER: It is level at
the beginning but increases after the first few years
all other factors being equal, what would the premium be like in a survivorship life
policy as compared to the premium in a joint life policy? - ANSWER: Lower
The type of insurance sold to a debtor and designed to pay the amount due on a
loan if the debtor dies before the loan is repaid is called - ANSWER: credit life
