North Carolina Health Insurance License Test 2025 Preparation Test Bank
With 200 Questions and Correct Detailed Answers for Actual Exam
Practice_NC Health Insurance Exam Prep Test Bank (Updated)
1. An agent who sells an individual life insurance policy in NC MUST deliver to the
policyowner (correct Answer) - ✅✅ A policy summary and buyer's guide
2. All of the following actions are considered rebating EXCEPT (correct Answer) - ✅✅
Sharing commissions with other licensed and appointed agents
3. What benefit does the Payor Clause on a Juvenile Life Policy provide? (correct Answer) -
✅✅ Premiums are waived if payor becomes disabled
4. An agent who signs a blank contract application or policy of insurance (correct 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? (correct Answer) - ✅✅ 18
6. In a life insurance policy, which feature states that the policy will not cover certain risks?
(correct Answer) - ✅✅ Exclusion
Whole Life insurance are contractually guaranteed to provide each of the following
EXCEPT? (correct Answer) - ✅✅ Partial withdrawal features beyond a surrender charge
period
A term life insurance policy matures (correct Answer) - ✅✅ Upon the insured's death
during the term of the policy
,Which of these provisions require proof of insurability after a policy has lapsed? (correct
Answer) - ✅✅ Reinstatement
How does a typical Variable Life Policy Investment account grow? (correct Answer) - ✅✅
Through mutual funds, stocks, and bonds
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 (correct Answer) - ✅✅ Defamation
All of the following are considered characteristics describing the nature of an insurance
contract EXCEPT (correct Answer) - ✅✅ Bilateral
A 15-year mortgage is best protected by what kind of life policy? (correct Answer) - ✅✅ 15-
year decreasing term
Companies in NC may transact solicitations for insurance ONLY through (correct Answer)
- ✅✅ Licensed agents
Which of these retirement plans can be started by an employee, even if another plan is in
existence (correct Answer) - ✅✅ Individual Retirement Account (IRA)
A life policy with a death benefit that can fluctuate according to the performance of its
underlying investment portfolio is referred to as (correct Answer) - ✅✅ Variable life
If an annuity is terminated prior to the beginning of the income payment period, the
contract owner receives (correct Answer) - ✅✅ The contract surrender value at that time
, 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 (correct Answer) - ✅✅ Policy Loan
Provision
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?
(correct Answer) - ✅✅ At future dates specified in the contract with no evidence of
insurability required
T, age 70, withdrawals cash from a profit-sharing plan and purchases a Straight Life
Annuity. What will this transaction provide? (correct Answer) - ✅✅ Income that cannot be
outlived by the owner
A level premium indicates (correct Answer) - ✅✅ The premium is fixed for the entire
duration of the contract
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? (correct
Answer) - ✅✅ Daughter
Which of the following statements is correct about the period in which a Term Policy can
be converted? (correct Answer) - ✅✅ It can be changed by the insured
What group term life feature permits an individual to depart from the group and continue
to be converted without providing evidence of insurability? (correct Answer) - ✅✅
Conversion
An insured covered by life insurance has just died. What will happen if the primary
beneficiary had already died before the insured and contingent beneficiary? (correct
Answer) - ✅✅ Proceed will go to the contingent beneficiary
With 200 Questions and Correct Detailed Answers for Actual Exam
Practice_NC Health Insurance Exam Prep Test Bank (Updated)
1. An agent who sells an individual life insurance policy in NC MUST deliver to the
policyowner (correct Answer) - ✅✅ A policy summary and buyer's guide
2. All of the following actions are considered rebating EXCEPT (correct Answer) - ✅✅
Sharing commissions with other licensed and appointed agents
3. What benefit does the Payor Clause on a Juvenile Life Policy provide? (correct Answer) -
✅✅ Premiums are waived if payor becomes disabled
4. An agent who signs a blank contract application or policy of insurance (correct 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? (correct Answer) - ✅✅ 18
6. In a life insurance policy, which feature states that the policy will not cover certain risks?
(correct Answer) - ✅✅ Exclusion
Whole Life insurance are contractually guaranteed to provide each of the following
EXCEPT? (correct Answer) - ✅✅ Partial withdrawal features beyond a surrender charge
period
A term life insurance policy matures (correct Answer) - ✅✅ Upon the insured's death
during the term of the policy
,Which of these provisions require proof of insurability after a policy has lapsed? (correct
Answer) - ✅✅ Reinstatement
How does a typical Variable Life Policy Investment account grow? (correct Answer) - ✅✅
Through mutual funds, stocks, and bonds
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 (correct Answer) - ✅✅ Defamation
All of the following are considered characteristics describing the nature of an insurance
contract EXCEPT (correct Answer) - ✅✅ Bilateral
A 15-year mortgage is best protected by what kind of life policy? (correct Answer) - ✅✅ 15-
year decreasing term
Companies in NC may transact solicitations for insurance ONLY through (correct Answer)
- ✅✅ Licensed agents
Which of these retirement plans can be started by an employee, even if another plan is in
existence (correct Answer) - ✅✅ Individual Retirement Account (IRA)
A life policy with a death benefit that can fluctuate according to the performance of its
underlying investment portfolio is referred to as (correct Answer) - ✅✅ Variable life
If an annuity is terminated prior to the beginning of the income payment period, the
contract owner receives (correct Answer) - ✅✅ The contract surrender value at that time
, 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 (correct Answer) - ✅✅ Policy Loan
Provision
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?
(correct Answer) - ✅✅ At future dates specified in the contract with no evidence of
insurability required
T, age 70, withdrawals cash from a profit-sharing plan and purchases a Straight Life
Annuity. What will this transaction provide? (correct Answer) - ✅✅ Income that cannot be
outlived by the owner
A level premium indicates (correct Answer) - ✅✅ The premium is fixed for the entire
duration of the contract
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? (correct
Answer) - ✅✅ Daughter
Which of the following statements is correct about the period in which a Term Policy can
be converted? (correct Answer) - ✅✅ It can be changed by the insured
What group term life feature permits an individual to depart from the group and continue
to be converted without providing evidence of insurability? (correct Answer) - ✅✅
Conversion
An insured covered by life insurance has just died. What will happen if the primary
beneficiary had already died before the insured and contingent beneficiary? (correct
Answer) - ✅✅ Proceed will go to the contingent beneficiary
