NC LIFE INSURANCE LICENSE ACTUAL
EXAM 2026 ALL QUESTIONS AND
CORRRECT DETAILED ANSWERS |
RATED A +| NEW AND REVISED
Which Federal law allows an insurer to obtain an inspection report on a
potential insured? - ANSWER- Fair Credit Reporting Act
In life insurance, the needs approach is used mostly to establish -
ANSWER- how much life insurance a client should apply for
What does the ensuring agreement in a life insurance contract establish -
ANSWER- an insurer's basic promise
T is the policy owner for a life insurance policy with an irrevocable
beneficiary designation. If he wishes to change the beneficiary, T must
obtain permission from the - ANSWER- Beneficiary
The following life insurance policies combined term with an investment
element - ANSWER- Universal life
What is considered a valid reason for small businesses to ensure the
lives of its major stakeholders? - ANSWER- Fund a buy-sell agreement
,When a life insurance policy exceeds certain IRS table values, the result
would create, which of the following? - ANSWER- Modified
Endowment Contract (MEC)
A student pilot can pay a regular premium cost for her life insurance
policy with the addition of which of the following? - ANSWER-
Aviation exclusion
Variable Whole Life Insurance can be described as - ANSWER- both an
insurance and securities product
All of these are a prerequisite for becoming a licensed resident agent in
North Carolina except - ANSWER- graduate from high school
A life policy was a death benefit and cash value that can fluctuate
according to the performance of its underlying investment portfolio is
referred to as - ANSWER- variable life
P owns a $25,000 life policy that pays the face amount to him if he lives
to age 70, or to his beneficiary if he dies before age 70. What kind of
policy does he own? - ANSWER- endowment at age 70
A potential client, age, 40, would like to purchase a whole life policy
that will accumulate cash value at a faster rate in the earlier years of the
policy. Which of these statements may by the producer would be
correct? - ANSWER- 20 pay life accumulates cash value faster than
straight life
, The _______ has the right to a life insurance policies beneficiary -
ANSWER- Policy owner
P is looking to purchase a life insurance policy that will pay a stated
monthly income to his beneficiaries at for 20 years after he dies and I
want some of $20,000 at the end of the 20 year period. What type of
policy should P purchase? - ANSWER- Family maintenance policy
Rick recently died and left behind an individual IRA account in his
name. His widow was forwarded the balance of the IRA. The widow
qualifies for the. - ANSWER- marital deduction
Two partners own equal shares and a business worth a total of $1
million. If they both commit to the purchase a life insurance policy that
will fund a buy - sell agreement, which of the following is true? -
ANSWER- each partner owns a $500,000 life policy on their partners
life
A 45-year-old woman won $100,000 in a scratch off lottery ticket. She
purchased an annuity that will pay her $1500 per month beginning at age
60 which of these annuities did this woman purchase? - ANSWER-
Deferred fixed annuity
The investment gains from a Universal Life Policy usually go toward -
ANSWER- cash value
EXAM 2026 ALL QUESTIONS AND
CORRRECT DETAILED ANSWERS |
RATED A +| NEW AND REVISED
Which Federal law allows an insurer to obtain an inspection report on a
potential insured? - ANSWER- Fair Credit Reporting Act
In life insurance, the needs approach is used mostly to establish -
ANSWER- how much life insurance a client should apply for
What does the ensuring agreement in a life insurance contract establish -
ANSWER- an insurer's basic promise
T is the policy owner for a life insurance policy with an irrevocable
beneficiary designation. If he wishes to change the beneficiary, T must
obtain permission from the - ANSWER- Beneficiary
The following life insurance policies combined term with an investment
element - ANSWER- Universal life
What is considered a valid reason for small businesses to ensure the
lives of its major stakeholders? - ANSWER- Fund a buy-sell agreement
,When a life insurance policy exceeds certain IRS table values, the result
would create, which of the following? - ANSWER- Modified
Endowment Contract (MEC)
A student pilot can pay a regular premium cost for her life insurance
policy with the addition of which of the following? - ANSWER-
Aviation exclusion
Variable Whole Life Insurance can be described as - ANSWER- both an
insurance and securities product
All of these are a prerequisite for becoming a licensed resident agent in
North Carolina except - ANSWER- graduate from high school
A life policy was a death benefit and cash value that can fluctuate
according to the performance of its underlying investment portfolio is
referred to as - ANSWER- variable life
P owns a $25,000 life policy that pays the face amount to him if he lives
to age 70, or to his beneficiary if he dies before age 70. What kind of
policy does he own? - ANSWER- endowment at age 70
A potential client, age, 40, would like to purchase a whole life policy
that will accumulate cash value at a faster rate in the earlier years of the
policy. Which of these statements may by the producer would be
correct? - ANSWER- 20 pay life accumulates cash value faster than
straight life
, The _______ has the right to a life insurance policies beneficiary -
ANSWER- Policy owner
P is looking to purchase a life insurance policy that will pay a stated
monthly income to his beneficiaries at for 20 years after he dies and I
want some of $20,000 at the end of the 20 year period. What type of
policy should P purchase? - ANSWER- Family maintenance policy
Rick recently died and left behind an individual IRA account in his
name. His widow was forwarded the balance of the IRA. The widow
qualifies for the. - ANSWER- marital deduction
Two partners own equal shares and a business worth a total of $1
million. If they both commit to the purchase a life insurance policy that
will fund a buy - sell agreement, which of the following is true? -
ANSWER- each partner owns a $500,000 life policy on their partners
life
A 45-year-old woman won $100,000 in a scratch off lottery ticket. She
purchased an annuity that will pay her $1500 per month beginning at age
60 which of these annuities did this woman purchase? - ANSWER-
Deferred fixed annuity
The investment gains from a Universal Life Policy usually go toward -
ANSWER- cash value
