NORTH CAROLINA LIFE INSURANCE STATE
EXAM QUESTIONS WITH CORRECT ANSWERS
2025
Renewability Option - CORRECT ANSWER -permits the insured to continue coverage for another term
without showing evidence of insurability
- CORRECT ANSWER -An agent is required to obtain a signed acceptance from the policyowner when a
policy is changed.
What Does a 3rd Party Contract Consist of ? - CORRECT ANSWER -A third party contract consists of the
policyowner, insured and the insurer.
What is the Primary Source of Underwriting? - CORRECT ANSWER -The application is the primary source
of underwriting.
Unilateral Contract - CORRECT ANSWER -An exchange of an act for a promise is a unilateral contract.
- CORRECT ANSWER -The applicant must initial any changes made on the application after the
application has already been
signed.
Elements of a Valid Contract - CORRECT ANSWER -The elements of a valid contract consist of
consideration, competent parties, agreement which is made up
of offer and acceptance, legal form and legal purpose.
insured's Consideration - CORRECT ANSWER -The insured's consideration are the statements on the
application and payment of the initial premium.
Insurer's Consideration - CORRECT ANSWER -The insurer's consideration is the "promise to pay".
EXAM QUESTIONS WITH CORRECT ANSWERS
2025
Renewability Option - CORRECT ANSWER -permits the insured to continue coverage for another term
without showing evidence of insurability
- CORRECT ANSWER -An agent is required to obtain a signed acceptance from the policyowner when a
policy is changed.
What Does a 3rd Party Contract Consist of ? - CORRECT ANSWER -A third party contract consists of the
policyowner, insured and the insurer.
What is the Primary Source of Underwriting? - CORRECT ANSWER -The application is the primary source
of underwriting.
Unilateral Contract - CORRECT ANSWER -An exchange of an act for a promise is a unilateral contract.
- CORRECT ANSWER -The applicant must initial any changes made on the application after the
application has already been
signed.
Elements of a Valid Contract - CORRECT ANSWER -The elements of a valid contract consist of
consideration, competent parties, agreement which is made up
of offer and acceptance, legal form and legal purpose.
insured's Consideration - CORRECT ANSWER -The insured's consideration are the statements on the
application and payment of the initial premium.
Insurer's Consideration - CORRECT ANSWER -The insurer's consideration is the "promise to pay".
