NC Life Insurance Exam Prep
Questions and Guide Answers
100% Verified Graded A+
1. An agent who sells an individual life insurance policy in NC MUST deliver to
the policyowner
Answer: A policy summary and buyer's guide
2. All of the following actions are considered rebating EXCEPT
Answer: Sharing commissions with other licensed and appointed agents
3. What benefit does the Payor Clause on a Juvenile Life Policy provide?
Answer: Premiums are waived if payor becomes disabled
4. An agent who signs a blank contract application or policy of insurance
Answer: Is guilty of a misdemeanor
5. A person is required to be AT LEAST how old before he or she is licensed as
an agent in NC?
Answer: 18
,6. In a life insurance policy, which feature states that the policy will not cover
certain risks?
Answer: Exclusion
7. Whole Life insurance are contractually guaranteed to provide each of the
following EXCEPT?
Answer: Partial withdrawal features beyond a surrender charge period
8. A term life insurance policy matures
Answer: Upon the insured's death during the term of the policy
9. Which of these provisions require proof of insurability after a policy has
lapsed?
Answer: Reinstatement
10. How does a typical Variable Life Policy Investment account grow?
Answer: Through mutual funds, stocks, and bonds
11. 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
Answer: Defamation
12. All of the following are considered characteristics describing the nature of
,an insurance contract EXCEPT
Answer: Bilateral
13. A 15-year mortgage is best protected by what kind of life policy?
Answer: 15-year decreasing term
14. Companies in NC may transact solicitations for insurance ONLY through
Answer: -
Licensed agents
15. Which of these retirement plans can be started by an employee, even if
another plan is in existence
Answer: Individual Retirement Account (IRA)
16. A life policy with a death benefit that can fluctuate according to the perfor-
mance of its underlying investment portfolio is referred to as
Answer: Variable life
17. If an annuity is terminated prior to the beginning of the income payment
period, the contract owner receives
Answer: The contract surrender value at that time
18. 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
, Answer: Policy Loan Provision
19. When does a Guaranteed Insurability Rider allow the insured to buy addi-
tional coverage?
Answer: At future dates specified in the contract with no evidence of insurability required
20. T, age 70, withdrawals cash from a profit-sharing plan and purchases a
Straight Life Annuity. What will this transaction provide?
Answer: Income that cannot be outlived by the owner
21. A level premium indicates
Answer: The premium is fixed for the entire duration of the contract
22. 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?
Answer: Daughter
23. Which of the following statements is correct about the period in which a
Term Policy can be converted?
Answer: It can be changed by the insured
24. What group term life feature permits an individual to depart from the group
Questions and Guide Answers
100% Verified Graded A+
1. An agent who sells an individual life insurance policy in NC MUST deliver to
the policyowner
Answer: A policy summary and buyer's guide
2. All of the following actions are considered rebating EXCEPT
Answer: Sharing commissions with other licensed and appointed agents
3. What benefit does the Payor Clause on a Juvenile Life Policy provide?
Answer: Premiums are waived if payor becomes disabled
4. An agent who signs a blank contract application or policy of insurance
Answer: Is guilty of a misdemeanor
5. A person is required to be AT LEAST how old before he or she is licensed as
an agent in NC?
Answer: 18
,6. In a life insurance policy, which feature states that the policy will not cover
certain risks?
Answer: Exclusion
7. Whole Life insurance are contractually guaranteed to provide each of the
following EXCEPT?
Answer: Partial withdrawal features beyond a surrender charge period
8. A term life insurance policy matures
Answer: Upon the insured's death during the term of the policy
9. Which of these provisions require proof of insurability after a policy has
lapsed?
Answer: Reinstatement
10. How does a typical Variable Life Policy Investment account grow?
Answer: Through mutual funds, stocks, and bonds
11. 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
Answer: Defamation
12. All of the following are considered characteristics describing the nature of
,an insurance contract EXCEPT
Answer: Bilateral
13. A 15-year mortgage is best protected by what kind of life policy?
Answer: 15-year decreasing term
14. Companies in NC may transact solicitations for insurance ONLY through
Answer: -
Licensed agents
15. Which of these retirement plans can be started by an employee, even if
another plan is in existence
Answer: Individual Retirement Account (IRA)
16. A life policy with a death benefit that can fluctuate according to the perfor-
mance of its underlying investment portfolio is referred to as
Answer: Variable life
17. If an annuity is terminated prior to the beginning of the income payment
period, the contract owner receives
Answer: The contract surrender value at that time
18. 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
, Answer: Policy Loan Provision
19. When does a Guaranteed Insurability Rider allow the insured to buy addi-
tional coverage?
Answer: At future dates specified in the contract with no evidence of insurability required
20. T, age 70, withdrawals cash from a profit-sharing plan and purchases a
Straight Life Annuity. What will this transaction provide?
Answer: Income that cannot be outlived by the owner
21. A level premium indicates
Answer: The premium is fixed for the entire duration of the contract
22. 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?
Answer: Daughter
23. Which of the following statements is correct about the period in which a
Term Policy can be converted?
Answer: It can be changed by the insured
24. What group term life feature permits an individual to depart from the group
