YOUR GATEWAY TO ACADEMIC EXCELLENCE
NC Life Exam Questions With 100%
Correct Answers
, YOUR GATEWAY TO ACADEMIC EXCELLENCE
The validity of the policy cannot be conested once it has been in force for at least how
many years after its date of issue? - ✓✓-2 Years
A rider attached to a life insurance policy that provides coverage on the insured's family
members is called the - ✓✓-Other-insured rider
When an insured makes truthful statements on the application for insurance and pays
the required premium, it is know as what - ✓✓-Consideration
The regulation of the insurance industry primarily rests with - ✓✓-The State
Upon dead of the insured, the primary beneficiary discovers that the insured chose the
interest only settlement option. What does this mean - ✓✓-The beneficiary will only
receive payments on the interest earned on the death benefit
A licensee decides to terminate his residency in this state. Which of the following would
be an appropriate action - ✓✓-Delivering the license to the commissioner within 30
days
If the annuitant dies during the accumulation period, who will receive the annuity
benefits - ✓✓-beneficiary
Which of the following is correct concerning the taxation of premiums in a key-person
life insurance policy - ✓✓-Premiums are not tax deductible as a business expense.
Which of the following statements about the reinstatement provision is TRUE - ✓✓-It
requires the policyowner to pay all overdue premiums with interest before the policy is
reinstated
If a deferred annuity is surrendered prematurely, a surrender charge is imposed. How is
the surrender charge determined - ✓✓-The surrender charge is a percentage of the
cash value and decreases over time
Which settlement option allows the insurer to retain the face amount but pay some
income based on gain on the proceeds to the beneficiary at regular intervals - ✓✓-
Interest only
If $100k of life insurance proceeds were used in a settlement option, which paid $13k
per year for ten years, which of the following would be taxable annually? - ✓✓-$3000
Under an extended term nonforfeiture option, the policy cash value is converted to - ✓
✓-The same face amount as in the whole life policy
Which of the following must an insurer obtain in order to transact insurance within a
given state - ✓✓-Certificate of Authority
NC Life Exam Questions With 100%
Correct Answers
, YOUR GATEWAY TO ACADEMIC EXCELLENCE
The validity of the policy cannot be conested once it has been in force for at least how
many years after its date of issue? - ✓✓-2 Years
A rider attached to a life insurance policy that provides coverage on the insured's family
members is called the - ✓✓-Other-insured rider
When an insured makes truthful statements on the application for insurance and pays
the required premium, it is know as what - ✓✓-Consideration
The regulation of the insurance industry primarily rests with - ✓✓-The State
Upon dead of the insured, the primary beneficiary discovers that the insured chose the
interest only settlement option. What does this mean - ✓✓-The beneficiary will only
receive payments on the interest earned on the death benefit
A licensee decides to terminate his residency in this state. Which of the following would
be an appropriate action - ✓✓-Delivering the license to the commissioner within 30
days
If the annuitant dies during the accumulation period, who will receive the annuity
benefits - ✓✓-beneficiary
Which of the following is correct concerning the taxation of premiums in a key-person
life insurance policy - ✓✓-Premiums are not tax deductible as a business expense.
Which of the following statements about the reinstatement provision is TRUE - ✓✓-It
requires the policyowner to pay all overdue premiums with interest before the policy is
reinstated
If a deferred annuity is surrendered prematurely, a surrender charge is imposed. How is
the surrender charge determined - ✓✓-The surrender charge is a percentage of the
cash value and decreases over time
Which settlement option allows the insurer to retain the face amount but pay some
income based on gain on the proceeds to the beneficiary at regular intervals - ✓✓-
Interest only
If $100k of life insurance proceeds were used in a settlement option, which paid $13k
per year for ten years, which of the following would be taxable annually? - ✓✓-$3000
Under an extended term nonforfeiture option, the policy cash value is converted to - ✓
✓-The same face amount as in the whole life policy
Which of the following must an insurer obtain in order to transact insurance within a
given state - ✓✓-Certificate of Authority
