1|Page
NC LIFE INSURANCE LICENSE EXAM AND
PRACTICE EXAM NEWEST 2026 TEST BANK|
COMPLETE 400 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+ (MOST RECENT!!)
Which of the following is NOT a typical permanent exclusion in life
insurance policies?
1) Aviation
2) Suicide
3) Acts of war
4) Self-inflicted injuries - Correct Answer -2) Suicide
The ________ Act mandated once and for all that insurance would be
regulated by the states.
1) Gramm- Billey-Leach
2) U.S. vs. Southeastern Underwriters
3) McCarran-Ferguson
4) Social Security - Correct Answer -3) McCarran-Ferguson
A portion of a mutual insurer's premiums are paid out as policy
dividends and are considered:
1) investments
pg. 1
,2|Page
2) refunds
3) capital
4) assets - Correct Answer -2) refunds
What is the Free Look Period for annuity contracts?
1) 3 days
2) 7 days
3) 10 days
4) 30 days - Correct Answer -3) 10 days
Henry has a Life with Period Certain annuity (life or ten years) in which
his wife, Harriet, is beneficiary. If Henry dies after 5 years, what will
Harriet receive?
1) Payments for the full 10 years
2) Payments for the remaining 5 years
3) The full amount in a lump sum
4) One-half of the full amount in a lump sum - Correct Answer -2)
Section 1035 Exchanges are a way to move annuity funds:
1) without losing any interest
2) from one account into several with a lower tax rate
3) income tax free
4) without becoming fully taxable - Correct Answer -3) income tax free
pg. 2
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Joan's insurance agent, Tim, has offered her a $100 dinner gift certificate
if Joan purchases a life insurance policy from Tim. Tim has violated
ethical sales by:
1) twisting
2) churning
3) misrepresentation
4) rebating - Correct Answer -4) rebating
According to NC law, all group life policies must contain a conversion
provision which allows the covered individual ______ to convert the
group coverage to an individual plan without evidence of insurability if
their employment is terminated.
1) 14 days
2) 21 days
3) 31 days
4) 6 months - Correct Answer -3) 31 days
The ________ is a qualified plan that allows unincorporated business
owners to participate in the retirement plan as an employee.
1) Simplified Employee Pension Plan
2) Keogh Plan
3) Salary Reduction SEP Plan
4) Salary Incentive Match Plan - Correct Answer -2) Keogh Plan
pg. 3
, 4|Page
The employees of XYZ Company must each pay a part of the premium
for their group health/life insurance plan. They are, therefore, members
of a ___________ group plan.
1) noncontributory
2) contributory
3) nonparticipating
4) nonadmitted - Correct Answer -2) contributory
Rose wants an annuity to provide guaranteed income for life, but if she
dies before the funds are depleted, she wants her daughter, as
beneficiary, to receive the balance in a lump sum payment. Which type
of payout option should she select?
1) Straight Life Income Annuity
2) Cash Refund Option Annuity
3) Installment Refund Option Annuity
4) Period Certain Option Annuity - Correct Answer -2) Cash Refund
Option Annuity
Under HMO plans, subscribers pay _____________ in advance of any
treatment.
1) a fixed periodic premium
2) the scheduled annual premium
3) a percentage of the deductible
4) the entire deductible - Correct Answer -1) a fixed periodic premium
pg. 4
NC LIFE INSURANCE LICENSE EXAM AND
PRACTICE EXAM NEWEST 2026 TEST BANK|
COMPLETE 400 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+ (MOST RECENT!!)
Which of the following is NOT a typical permanent exclusion in life
insurance policies?
1) Aviation
2) Suicide
3) Acts of war
4) Self-inflicted injuries - Correct Answer -2) Suicide
The ________ Act mandated once and for all that insurance would be
regulated by the states.
1) Gramm- Billey-Leach
2) U.S. vs. Southeastern Underwriters
3) McCarran-Ferguson
4) Social Security - Correct Answer -3) McCarran-Ferguson
A portion of a mutual insurer's premiums are paid out as policy
dividends and are considered:
1) investments
pg. 1
,2|Page
2) refunds
3) capital
4) assets - Correct Answer -2) refunds
What is the Free Look Period for annuity contracts?
1) 3 days
2) 7 days
3) 10 days
4) 30 days - Correct Answer -3) 10 days
Henry has a Life with Period Certain annuity (life or ten years) in which
his wife, Harriet, is beneficiary. If Henry dies after 5 years, what will
Harriet receive?
1) Payments for the full 10 years
2) Payments for the remaining 5 years
3) The full amount in a lump sum
4) One-half of the full amount in a lump sum - Correct Answer -2)
Section 1035 Exchanges are a way to move annuity funds:
1) without losing any interest
2) from one account into several with a lower tax rate
3) income tax free
4) without becoming fully taxable - Correct Answer -3) income tax free
pg. 2
,3|Page
Joan's insurance agent, Tim, has offered her a $100 dinner gift certificate
if Joan purchases a life insurance policy from Tim. Tim has violated
ethical sales by:
1) twisting
2) churning
3) misrepresentation
4) rebating - Correct Answer -4) rebating
According to NC law, all group life policies must contain a conversion
provision which allows the covered individual ______ to convert the
group coverage to an individual plan without evidence of insurability if
their employment is terminated.
1) 14 days
2) 21 days
3) 31 days
4) 6 months - Correct Answer -3) 31 days
The ________ is a qualified plan that allows unincorporated business
owners to participate in the retirement plan as an employee.
1) Simplified Employee Pension Plan
2) Keogh Plan
3) Salary Reduction SEP Plan
4) Salary Incentive Match Plan - Correct Answer -2) Keogh Plan
pg. 3
, 4|Page
The employees of XYZ Company must each pay a part of the premium
for their group health/life insurance plan. They are, therefore, members
of a ___________ group plan.
1) noncontributory
2) contributory
3) nonparticipating
4) nonadmitted - Correct Answer -2) contributory
Rose wants an annuity to provide guaranteed income for life, but if she
dies before the funds are depleted, she wants her daughter, as
beneficiary, to receive the balance in a lump sum payment. Which type
of payout option should she select?
1) Straight Life Income Annuity
2) Cash Refund Option Annuity
3) Installment Refund Option Annuity
4) Period Certain Option Annuity - Correct Answer -2) Cash Refund
Option Annuity
Under HMO plans, subscribers pay _____________ in advance of any
treatment.
1) a fixed periodic premium
2) the scheduled annual premium
3) a percentage of the deductible
4) the entire deductible - Correct Answer -1) a fixed periodic premium
pg. 4
