NC Life Insurance Exam Study Guide with Complete Solutions Latest Updated 2024/2025

NC Life Insurance Exam Study Guide with Complete Solutions Latest Updated 2024/2025 Fraternal Benefit Society - Correct Answer An organization of people who share a month ethnic, religious or vocational affiliation. They are entities they have no capital stock, have a representative form of government. They exist not for profit but solely for the benefit of their members and their beneficiaries and operate on a lodge system. Fraternal Benefit Societies - Correct Answer Agents of these societies must comply with the SAME general laws governing licensing that apply to resident and nonresident agents. Graded Premium Whole Life - Correct Answer Has premiums they start very low then increase annually for a long period and stay level for the rest of the life of the policy. Death Benefit Option 1 of a universal life policy - Correct Answer the benefit payable when the insured dies stays level and equal to the initial specified amount. Death Benefit Option 2 of a universal life policy - Correct Answer this benefit is generally increasing. This benefit equals the policy's specified amount plus the cash value. Variable Universal Life insurance - Correct Answer Combines the features of universal life insurane with the ability to allocate premiums to a seperate account. THIS MEANS the growth of the contract's cash value is based on the performance of the underlying investment. Straight Life Income - Correct Answer provides the largest monthly income payment for a given amount o annualized funds. Also called pure life option, income payments are made for the annuitants lifetime, regardless of how long that may be. In regards to the Section 1035 tax code, which exchanges is permitted on a tax-free basis? - Correct Answer 1. life insurance for life insurance 2. Life insurance for an endowment 3.Endowment for an Endowment 4.Life insurance for an Annuity 5. Annuity for an Annuity