NC LIFE INSURANCE STATE EXAMINATION
TEST 2026 FULL QUESTIONS AND
UPDATED VERIFIED SOLUTIONS
⩥ Alien. Answer: an insurer incorporated or organized in another
country, but has operations in the state of North Carolina
⩥ Foreign. Answer: an insurer incorporated and domiciled in another
state other than North Carolina but is doing business in North Carolina
⩥ Reciprocal Exchanges. Answer: insurance covers members of a group
with each member providing benefits to each member if the member
suffers a loss
⩥ Reinsurance. Answer: Type of insurance is used between insurers to
provide insurance on the same risk.
⩥ Financial Needs Analysis. Answer: Determines the cash and income
needs of a family if the insured dies
⩥ Accidental, Measurable, Non Catastrophic, Large number of similar
exposures.. Answer: Criteria for insurable risk
,⩥ Warranty. Answer: a guarantee that statements given by the applicant
in the application for insurance are absolute facts about a risk
⩥ Indemnity. Answer: a contract type that promises to pay an amount
equal to the property covered under the policy if a loss occurs
⩥ Life Insurance Riders. Answer: Require Underwriting, are less
expensive than a standalone policy, typically for a specified amount of
coverage, and are for a stated period of time.
⩥ Increasing Term. Answer: Add to the whole life portion of the Face
amount plus Cash Value Policy to provide the addition sum if the
insured dies prematurely. Keeps pace with the growing cash value in the
policy and pays the addition sum if the insured dies.
⩥ Joint Life. Answer: Provides the same amount of coverage for both
candidates
⩥ Family Maintenance Policy. Answer: features Whole Life and Level
Term insurance. The Level Term provides the income payments. As long
as the term period had not expired, the full benefit is paid
⩥ Life Paid up at ___. Answer: Premiums are not required at the __ age,
The death benefit will remain level until the policy maturity date,
, premiums are level until the age ___. the cash value equals the death
benefit at 100
⩥ Endowment. Answer: The Endowment policy is specifically designed
as a policy to provide the insured with funds to be used for purposes
such as retirement. The policy provides a death benefit equal to the
Endowment amount if the insured does not live to the maturity date of
the policy.
⩥ Ordinary Whole Life Insurance. Answer: Premiums are payable on a
monthly basis, it may be purchased in large amounts of death benefit,
the face amount will normally exceed $1000 per policy, level premiums
for the life of the contract/
⩥ Family Maintenance Policy. Answer: Combines Whole Life and Level
Term insurance. The Level Term will last for a stated period such as 20
years and then will expire leaving the Whole Life as the remaining
coverage. K indicated that she wanted the insurance death benefits to be
"level" for at least 20 years. The Family Maintenance Policy will fit the
need. Provides payment of an income for a selected, fixed period of
years beginning from the date of the insureds death.
⩥ Converting Term Life to Whole Life Original Age Method. Answer:
Requires back premiums to be paid for the time that the policy had the
lower term premium
TEST 2026 FULL QUESTIONS AND
UPDATED VERIFIED SOLUTIONS
⩥ Alien. Answer: an insurer incorporated or organized in another
country, but has operations in the state of North Carolina
⩥ Foreign. Answer: an insurer incorporated and domiciled in another
state other than North Carolina but is doing business in North Carolina
⩥ Reciprocal Exchanges. Answer: insurance covers members of a group
with each member providing benefits to each member if the member
suffers a loss
⩥ Reinsurance. Answer: Type of insurance is used between insurers to
provide insurance on the same risk.
⩥ Financial Needs Analysis. Answer: Determines the cash and income
needs of a family if the insured dies
⩥ Accidental, Measurable, Non Catastrophic, Large number of similar
exposures.. Answer: Criteria for insurable risk
,⩥ Warranty. Answer: a guarantee that statements given by the applicant
in the application for insurance are absolute facts about a risk
⩥ Indemnity. Answer: a contract type that promises to pay an amount
equal to the property covered under the policy if a loss occurs
⩥ Life Insurance Riders. Answer: Require Underwriting, are less
expensive than a standalone policy, typically for a specified amount of
coverage, and are for a stated period of time.
⩥ Increasing Term. Answer: Add to the whole life portion of the Face
amount plus Cash Value Policy to provide the addition sum if the
insured dies prematurely. Keeps pace with the growing cash value in the
policy and pays the addition sum if the insured dies.
⩥ Joint Life. Answer: Provides the same amount of coverage for both
candidates
⩥ Family Maintenance Policy. Answer: features Whole Life and Level
Term insurance. The Level Term provides the income payments. As long
as the term period had not expired, the full benefit is paid
⩥ Life Paid up at ___. Answer: Premiums are not required at the __ age,
The death benefit will remain level until the policy maturity date,
, premiums are level until the age ___. the cash value equals the death
benefit at 100
⩥ Endowment. Answer: The Endowment policy is specifically designed
as a policy to provide the insured with funds to be used for purposes
such as retirement. The policy provides a death benefit equal to the
Endowment amount if the insured does not live to the maturity date of
the policy.
⩥ Ordinary Whole Life Insurance. Answer: Premiums are payable on a
monthly basis, it may be purchased in large amounts of death benefit,
the face amount will normally exceed $1000 per policy, level premiums
for the life of the contract/
⩥ Family Maintenance Policy. Answer: Combines Whole Life and Level
Term insurance. The Level Term will last for a stated period such as 20
years and then will expire leaving the Whole Life as the remaining
coverage. K indicated that she wanted the insurance death benefits to be
"level" for at least 20 years. The Family Maintenance Policy will fit the
need. Provides payment of an income for a selected, fixed period of
years beginning from the date of the insureds death.
⩥ Converting Term Life to Whole Life Original Age Method. Answer:
Requires back premiums to be paid for the time that the policy had the
lower term premium
