NC LIFE INSURANCE STATE EXAM STUDY
GUIDELINE 2026 WITH LATEST VERIFIED
ANSWERS
⩥ BUY-SELL AGREEMENTS. Answer: a legal contract that determines
what will be done with a business in the event that an owner dies or
becomes disabled. Otherwise known as a business continuation
agreement
⩥ INSURABLE INTEREST. Answer: to purchase insurance the policy
owner must face the possibility of losing money or something of value
in the event of loss, insurable interest must exist between the policy
owner and the insured at the time of application
⩥ CONCEALMENT. Answer: the legal term for the intentional
withholding of information of a material fact that is crucial in making a
decision
⩥ MISREPRESENTATION. Answer: statement that if discovered would
alter the underwriting decision of the insurance company
⩥ IMPERSONATION. Answer: Otherwise known as false pretense,
refers to the act of assuming the name and/or identity of another person
for the purpose of committing a fraud
, ⩥ UNILATERAL. Answer: only one of the parties to the contract is
legally bound to do anything. The insured makes no legally binding
promises however an insurer is legally bound to pay losses covered by a
policy in force
⩥ ADHESION. Answer: a contract of adhesion is prepared by one of the
parties (insurer) and accepted or rejected by the other party (insured).
Insurance policies are not drawn up through negotiations, and an insured
has little to say about its provisions. Insurance contract are offered on a
take it or leave it basis by an insurer
⩥ INDEMNITY. Answer: sometimes known as reimbursement, a
provision in an insurance policy that states that in the event of loss, an
insured or beneficiary is permitted to collect only to the extent of the
financial loss, and is not allowed to gain financially because of the
existence of an insurance contract. The purpose of an insurance contract
is to restore, but not let an insured or a beneficiary profit from the loss
⩥ ALEATORY. Answer: an exchange of unequal amounts or values. The
premium paid by the insured is small in relation to the amount that will
be paid by the insurer in the event of a loss.
⩥ CONDITIONAL. Answer: requires that certain conditions must be
met by the policy owner and the company in order for the contract to be
executed and before each party fulfills its obligations.
GUIDELINE 2026 WITH LATEST VERIFIED
ANSWERS
⩥ BUY-SELL AGREEMENTS. Answer: a legal contract that determines
what will be done with a business in the event that an owner dies or
becomes disabled. Otherwise known as a business continuation
agreement
⩥ INSURABLE INTEREST. Answer: to purchase insurance the policy
owner must face the possibility of losing money or something of value
in the event of loss, insurable interest must exist between the policy
owner and the insured at the time of application
⩥ CONCEALMENT. Answer: the legal term for the intentional
withholding of information of a material fact that is crucial in making a
decision
⩥ MISREPRESENTATION. Answer: statement that if discovered would
alter the underwriting decision of the insurance company
⩥ IMPERSONATION. Answer: Otherwise known as false pretense,
refers to the act of assuming the name and/or identity of another person
for the purpose of committing a fraud
, ⩥ UNILATERAL. Answer: only one of the parties to the contract is
legally bound to do anything. The insured makes no legally binding
promises however an insurer is legally bound to pay losses covered by a
policy in force
⩥ ADHESION. Answer: a contract of adhesion is prepared by one of the
parties (insurer) and accepted or rejected by the other party (insured).
Insurance policies are not drawn up through negotiations, and an insured
has little to say about its provisions. Insurance contract are offered on a
take it or leave it basis by an insurer
⩥ INDEMNITY. Answer: sometimes known as reimbursement, a
provision in an insurance policy that states that in the event of loss, an
insured or beneficiary is permitted to collect only to the extent of the
financial loss, and is not allowed to gain financially because of the
existence of an insurance contract. The purpose of an insurance contract
is to restore, but not let an insured or a beneficiary profit from the loss
⩥ ALEATORY. Answer: an exchange of unequal amounts or values. The
premium paid by the insured is small in relation to the amount that will
be paid by the insurer in the event of a loss.
⩥ CONDITIONAL. Answer: requires that certain conditions must be
met by the policy owner and the company in order for the contract to be
executed and before each party fulfills its obligations.
