LIFE INSURANCE PRACTICE RXAMS WITH CORRECT ANSWERS 100%
GUARANTEED PASS
All cof cthe cfollowing care cincluded cwithin cthe cInsurance cCommissioner's cduties cEXCEPT
a) cConducting cinvestigation cof call cdomestic cinsurers.
b) cReviewing cthe cinsurers' cannual creports.
c) cWriting cNorth cCarolina cinsurance claws.
d) cReporting cany cviolations cof cinsurance claws cto cthe cAttorney cGeneral. cWriting cinsurance claw cis cnot cthe cInsurance
cCommissioner's cresponsibility, cbut cenforcing cthe claw cis. c) cWriting cNorth cCarolina cinsurance claws.
Writing cinsurance claw cis cnot cthe cInsurance cCommissioner's cresponsibility, cbut cenforcing cthe claw cis.
Which cof cthe cfollowing cinsurance cproviders cmust cbe cnonprofit cand csell cinsurance conly cto cits cmembers?
a) cReciprocal
b) cFraternal
c) cService
d) cMutual b) cFraternal
,To cbe ccharacterized cas ca cfraternal cbenefit csociety, cthe corganization cmust cbe cnonprofit, chave ca clodge csystem cthat cincludes
critualistic cwork cand cmaintain ca crepresentative cform cof cgovernment cwith celected cofficers. cInsurance cmay conly cbe csold cto
cmembers cof cthe csociety.
A cmarried ccouple cowns ca cpermanent cpolicy cwhich ccovers cboth cof ctheir clives cand cpays cthe cdeath cbenefit conly cupon cthe cdeath
cof cthe cfirst cinsured. cWhich cpolicy cis cthat?
a)Second-to-Die
b)Family cIncome cPolicy
c)Joint cLife cPolicy
d)Survivorship cLife cPolicy c)Joint cLife cPolicy
Joint clife cpolicies ccover cthe clives cof ctwo cinsureds; crates care cblended. cUpon cthe cdeath cof cthe cfirst cinsured, cthe cpolicy cends.
The cinsured cunder ca c$100,000 clife cinsurance cpolicy cwith ca ctriple cindemnity crider cfor caccidental cdeath cwas ckilled cin ca ccar
caccident. cIt cwas cdetermined cthat cthe caccident cwas chis cfault. cThe ctriple cindemnity crider cin cthe cpolicy cspecifies cthat cthe cdeath
cmust cnot cbe ccontributed cto cby cthe cinsured cin cany cmanner. cIn cthis ccase, cwhat cwill cthe cpolicy cbeneficiary creceive?
a)$0
b)$50,000 c(50% cof cthe cpolicy cvalue)
c)$100,000
d)$300,000 c(triple cthe camount cof cpolicy cvalue) c)$100,000
The ctriple cindemnity caccidental cdeath crider cobligates cthe ccompany cto cpay cthree ctimes cthe cface camount cof cthe cpolicy cif cthe
cinsured cdies cas ca cresult cof can caccident. cThe cdeath cmust cbe caccidental cand cnot ccontributed cto cby cany cother cfactors cand cmust
coccur cwithin c90 cdays cof cthe caccident. cIn cthis ccase, csince cthe cinsured ccontributed cto chis cown cdeath, cthe ctriple cindemnity crider
cis cvoid, cbut cthe cbeneficiary cwill cstill creceive cthe cpolicy's cdeath cbenefit.
In cterm cpolicies, cwhat chappens cto cthe cpremium cthroughout cthe cterm cof cthe cpolicy?
a) cPremium cgradually cincreases.
b) cPremium cgradually cdecreases.
c) cPremium cfluctuates.
,d) cPremium calways cremains clevel. d) cPremium calways cremains clevel.
There care cthree cbasic ctypes cof cterm ccoverage cavailable, cbased con chow cthe cface camount c(death cbenefit) cchanges cduring cthe
cpolicy cterm: cLevel, cIncreasing, cand cDecreasing. cRegardless cof cthe ctype cof cterm cinsurance cpurchased, cthe cpremium cis coften
clevel cthroughout cthe cterm cof cthe cpolicy.
An cinsurer cneglects cto cpay ca clegitimate cclaim cthat cis ccovered cunder cthe cterms cof cthe cpolicy. cWhich cof cthe cfollowing
cinsurance cprinciples chas cthe cinsurer cviolated?
a) cRepresentation
b) cAdhesion
c) cConsideration
d) cGood cfaith c) cConsideration
The cbinding cforce cin cany ccontract cis cconsideration. cConsideration con cthe cpart cof cthe cinsured cis cthe cpayment cof cpremiums cand
cthe chealth crepresentations cmade cin cthe capplication. cConsideration con cthe cpart cof cthe cinsurer cis cthe cpromise cto cpay cin cthe
cevent cof closs.
When cthe cbreadwinner cthat cis cinsured cby ca cFamily cPolicy cdies, cwhat crights care cprovided cto cother cfamily cmembers cthat care
ccovered cunder cthe cpolicy?
a) cThey ccan cconvert ctheir ccoverage cto cpermanent clife cinsurance cwith cevidence cof cinsurability
.b) cFamily cmembers care cnot cprovided cany crights.
c) cThey ccan csurrender cthe ccoverage cfor cits ccash cvalue.
d) cThey ccan cconvert ctheir ccoverage cto cpermanent clife cinsurance cwithout cevidence cof cinsurability. d) cThey ccan cconvert ctheir
ccoverage cto cpermanent clife cinsurance cwithout cevidence cof cinsurability.
Family cmembers cmay cconvert ctheir cterm ccoverage cto cpermanent cinsurance cif crequested cwithin cthe ctime cstated cin cthe cpolicy.
Forcing ca cclient cto cbuy cinsurance cfrom ca cparticular clender cas ca ccondition cof cgranting ca cloan cis cdefined cas
a) cDefamation.
b) cCoercion.
, c) cRebating.
d) cMisleading cadvertising. b) cCoercion.
These care call cconsidered cto cbe cUnfair cTrade cPractices, cwhich care cmajor cviolations cthat ccan clead cto cheavy cpenalties. cCoercion,
cfor cexample, cis cwhen cthe cbank cwon't cgive cyou can cauto cloan cunless cyou cagree cto cbuy cauto cinsurance cfrom cthem.
When can cinsurer crequires ca cwritten cproof cof closs cafter cnotice cof csuch closs chas cbeen cgiven cby cthe cinsured cor cbeneficiary, cthe
ccompany cmust
a) cRequest ca cpolice creport cfrom cthe cDepartment cof cMotor cVehicles.
b) cFurnish ca cblank cform cto cbe cused cfor cthat cpurpose.
c) cDocument cthe crequest cfor cfurther cinvestigation.
d) cSubmit cthe closs cclaim cto cunderwriting cfor cpremium creview cand cresolution.b) cFurnish ca cblank cform cto cbe cused cfor cthat
cpurpose.
When cany ccompany cunder cany cinsurance cpolicy crequires ca cwritten cproof cof closs cafter cnotice cof csuch closs chas cbeen cgiven cby
cthe cinsured cor cbeneficiary, cthe ccompany cor cits crepresentative cmust cfurnish ca cblank cform cto cbe cused cfor cthat cpurpose.
Insurance ccompanies care crequired cto cprovide cproof cof closs cforms cto cthe cclaimant cwithin chow cmany cdays cafter creceipt cof
cnotice cof closs?
a) c15
b) c30
c) c31
d) c45 a) c15
When cany ccompany cunder cany cinsurance cpolicy crequires ca cwritten cproof cof closs cafter cnotice cof cthe closs chas cbeen cgiven cby
cthe cinsured cor cbeneficiary, cthe ccompany cmust cfurnish ca cblank cform cwithin c15 cdays.
Which cis ctrue cabout ca cspouse cterm crider?
a) cThe crider cis cusually clevel cterm cinsurance.
b) cCoverage cis callowed cfor can cunlimited ctime.
GUARANTEED PASS
All cof cthe cfollowing care cincluded cwithin cthe cInsurance cCommissioner's cduties cEXCEPT
a) cConducting cinvestigation cof call cdomestic cinsurers.
b) cReviewing cthe cinsurers' cannual creports.
c) cWriting cNorth cCarolina cinsurance claws.
d) cReporting cany cviolations cof cinsurance claws cto cthe cAttorney cGeneral. cWriting cinsurance claw cis cnot cthe cInsurance
cCommissioner's cresponsibility, cbut cenforcing cthe claw cis. c) cWriting cNorth cCarolina cinsurance claws.
Writing cinsurance claw cis cnot cthe cInsurance cCommissioner's cresponsibility, cbut cenforcing cthe claw cis.
Which cof cthe cfollowing cinsurance cproviders cmust cbe cnonprofit cand csell cinsurance conly cto cits cmembers?
a) cReciprocal
b) cFraternal
c) cService
d) cMutual b) cFraternal
,To cbe ccharacterized cas ca cfraternal cbenefit csociety, cthe corganization cmust cbe cnonprofit, chave ca clodge csystem cthat cincludes
critualistic cwork cand cmaintain ca crepresentative cform cof cgovernment cwith celected cofficers. cInsurance cmay conly cbe csold cto
cmembers cof cthe csociety.
A cmarried ccouple cowns ca cpermanent cpolicy cwhich ccovers cboth cof ctheir clives cand cpays cthe cdeath cbenefit conly cupon cthe cdeath
cof cthe cfirst cinsured. cWhich cpolicy cis cthat?
a)Second-to-Die
b)Family cIncome cPolicy
c)Joint cLife cPolicy
d)Survivorship cLife cPolicy c)Joint cLife cPolicy
Joint clife cpolicies ccover cthe clives cof ctwo cinsureds; crates care cblended. cUpon cthe cdeath cof cthe cfirst cinsured, cthe cpolicy cends.
The cinsured cunder ca c$100,000 clife cinsurance cpolicy cwith ca ctriple cindemnity crider cfor caccidental cdeath cwas ckilled cin ca ccar
caccident. cIt cwas cdetermined cthat cthe caccident cwas chis cfault. cThe ctriple cindemnity crider cin cthe cpolicy cspecifies cthat cthe cdeath
cmust cnot cbe ccontributed cto cby cthe cinsured cin cany cmanner. cIn cthis ccase, cwhat cwill cthe cpolicy cbeneficiary creceive?
a)$0
b)$50,000 c(50% cof cthe cpolicy cvalue)
c)$100,000
d)$300,000 c(triple cthe camount cof cpolicy cvalue) c)$100,000
The ctriple cindemnity caccidental cdeath crider cobligates cthe ccompany cto cpay cthree ctimes cthe cface camount cof cthe cpolicy cif cthe
cinsured cdies cas ca cresult cof can caccident. cThe cdeath cmust cbe caccidental cand cnot ccontributed cto cby cany cother cfactors cand cmust
coccur cwithin c90 cdays cof cthe caccident. cIn cthis ccase, csince cthe cinsured ccontributed cto chis cown cdeath, cthe ctriple cindemnity crider
cis cvoid, cbut cthe cbeneficiary cwill cstill creceive cthe cpolicy's cdeath cbenefit.
In cterm cpolicies, cwhat chappens cto cthe cpremium cthroughout cthe cterm cof cthe cpolicy?
a) cPremium cgradually cincreases.
b) cPremium cgradually cdecreases.
c) cPremium cfluctuates.
,d) cPremium calways cremains clevel. d) cPremium calways cremains clevel.
There care cthree cbasic ctypes cof cterm ccoverage cavailable, cbased con chow cthe cface camount c(death cbenefit) cchanges cduring cthe
cpolicy cterm: cLevel, cIncreasing, cand cDecreasing. cRegardless cof cthe ctype cof cterm cinsurance cpurchased, cthe cpremium cis coften
clevel cthroughout cthe cterm cof cthe cpolicy.
An cinsurer cneglects cto cpay ca clegitimate cclaim cthat cis ccovered cunder cthe cterms cof cthe cpolicy. cWhich cof cthe cfollowing
cinsurance cprinciples chas cthe cinsurer cviolated?
a) cRepresentation
b) cAdhesion
c) cConsideration
d) cGood cfaith c) cConsideration
The cbinding cforce cin cany ccontract cis cconsideration. cConsideration con cthe cpart cof cthe cinsured cis cthe cpayment cof cpremiums cand
cthe chealth crepresentations cmade cin cthe capplication. cConsideration con cthe cpart cof cthe cinsurer cis cthe cpromise cto cpay cin cthe
cevent cof closs.
When cthe cbreadwinner cthat cis cinsured cby ca cFamily cPolicy cdies, cwhat crights care cprovided cto cother cfamily cmembers cthat care
ccovered cunder cthe cpolicy?
a) cThey ccan cconvert ctheir ccoverage cto cpermanent clife cinsurance cwith cevidence cof cinsurability
.b) cFamily cmembers care cnot cprovided cany crights.
c) cThey ccan csurrender cthe ccoverage cfor cits ccash cvalue.
d) cThey ccan cconvert ctheir ccoverage cto cpermanent clife cinsurance cwithout cevidence cof cinsurability. d) cThey ccan cconvert ctheir
ccoverage cto cpermanent clife cinsurance cwithout cevidence cof cinsurability.
Family cmembers cmay cconvert ctheir cterm ccoverage cto cpermanent cinsurance cif crequested cwithin cthe ctime cstated cin cthe cpolicy.
Forcing ca cclient cto cbuy cinsurance cfrom ca cparticular clender cas ca ccondition cof cgranting ca cloan cis cdefined cas
a) cDefamation.
b) cCoercion.
, c) cRebating.
d) cMisleading cadvertising. b) cCoercion.
These care call cconsidered cto cbe cUnfair cTrade cPractices, cwhich care cmajor cviolations cthat ccan clead cto cheavy cpenalties. cCoercion,
cfor cexample, cis cwhen cthe cbank cwon't cgive cyou can cauto cloan cunless cyou cagree cto cbuy cauto cinsurance cfrom cthem.
When can cinsurer crequires ca cwritten cproof cof closs cafter cnotice cof csuch closs chas cbeen cgiven cby cthe cinsured cor cbeneficiary, cthe
ccompany cmust
a) cRequest ca cpolice creport cfrom cthe cDepartment cof cMotor cVehicles.
b) cFurnish ca cblank cform cto cbe cused cfor cthat cpurpose.
c) cDocument cthe crequest cfor cfurther cinvestigation.
d) cSubmit cthe closs cclaim cto cunderwriting cfor cpremium creview cand cresolution.b) cFurnish ca cblank cform cto cbe cused cfor cthat
cpurpose.
When cany ccompany cunder cany cinsurance cpolicy crequires ca cwritten cproof cof closs cafter cnotice cof csuch closs chas cbeen cgiven cby
cthe cinsured cor cbeneficiary, cthe ccompany cor cits crepresentative cmust cfurnish ca cblank cform cto cbe cused cfor cthat cpurpose.
Insurance ccompanies care crequired cto cprovide cproof cof closs cforms cto cthe cclaimant cwithin chow cmany cdays cafter creceipt cof
cnotice cof closs?
a) c15
b) c30
c) c31
d) c45 a) c15
When cany ccompany cunder cany cinsurance cpolicy crequires ca cwritten cproof cof closs cafter cnotice cof cthe closs chas cbeen cgiven cby
cthe cinsured cor cbeneficiary, cthe ccompany cmust cfurnish ca cblank cform cwithin c15 cdays.
Which cis ctrue cabout ca cspouse cterm crider?
a) cThe crider cis cusually clevel cterm cinsurance.
b) cCoverage cis callowed cfor can cunlimited ctime.
