NC LIFE INSURANCE STATE FINAL PAPER
2026 QUESTIONS WITH LATEST VERIFIED
ANSWERS GUARANTEED PASS
⩥ Who does a 3rd party contract consist of? Answer: Policyowner,
insured, and the insurer
⩥ What is the primary source of underwriting? Answer: The application
⩥ What makes up a unilateral contract? Answer: Exchange of an act for
a promise
⩥ When an applicant makes changes on the application after it has been
signed, they must do what? Answer: Initial Changes
⩥ What are the elements of a valid contract? Answer: Consideration,
competent parties, and agreement (offer and acceptance, legal form and
legal purpose)
⩥ What is the insured's consideration as part of a contract? Answer:
Statements on application and payment of initial premium
,⩥ What is the insurer's consideration as part of a contract? Answer: The
promise to pay
⩥ What additional license is required to sell variable products? Answer:
Variable Life and Annuity FINRA License
⩥ How long after proof of loss is received does the insurer have to pay
benefits before interest begins to add on? Answer: 30 days
⩥ How long after and individual leaves their group plan do they have to
switch to an individual plan and not be required to show proof of
insurability? Answer: 31 days
⩥ What is a foreign insurance company Answer: Any US insurance
company not based in the state of business
⩥ Will an agent be held personally liable for contracts written by the
agent while representing and unauthorized (non-admitted) company?
Answer: Yes
⩥ Can you use the Guaranty Association as part of your sales pitch?
Answer: No
⩥ If the insurer is going to use a non-public source as part of the
underwriting, which two documents must be provided at the time of
, application? Answer: Notice of Information Practices and the Disclosure
Authorization
⩥ How long must the insurer maintain policyowner files/records
Answer: 5 years from date of last use
⩥ Making derogatory statements against another company with the
intent to damage their reputation is known as: Answer: Defamation
⩥ How long does an appointment with a company remain in effect?
Answer: As long as the is is licensed and the appoint insurer is
authorized
⩥ What is one of the requirements to become a life/health agent Answer:
Pass 20-hour pre-licensing class
⩥ When does using a cost index to compare products work? Answer:
When they are similar products
⩥ Can an agent sign a blank policy? Answer: No, it is a misdemeanor
⩥ Why is universal life considered interest-sensative? Answer: Cash
value earns interest on current interest rates, not guaranteed rates
2026 QUESTIONS WITH LATEST VERIFIED
ANSWERS GUARANTEED PASS
⩥ Who does a 3rd party contract consist of? Answer: Policyowner,
insured, and the insurer
⩥ What is the primary source of underwriting? Answer: The application
⩥ What makes up a unilateral contract? Answer: Exchange of an act for
a promise
⩥ When an applicant makes changes on the application after it has been
signed, they must do what? Answer: Initial Changes
⩥ What are the elements of a valid contract? Answer: Consideration,
competent parties, and agreement (offer and acceptance, legal form and
legal purpose)
⩥ What is the insured's consideration as part of a contract? Answer:
Statements on application and payment of initial premium
,⩥ What is the insurer's consideration as part of a contract? Answer: The
promise to pay
⩥ What additional license is required to sell variable products? Answer:
Variable Life and Annuity FINRA License
⩥ How long after proof of loss is received does the insurer have to pay
benefits before interest begins to add on? Answer: 30 days
⩥ How long after and individual leaves their group plan do they have to
switch to an individual plan and not be required to show proof of
insurability? Answer: 31 days
⩥ What is a foreign insurance company Answer: Any US insurance
company not based in the state of business
⩥ Will an agent be held personally liable for contracts written by the
agent while representing and unauthorized (non-admitted) company?
Answer: Yes
⩥ Can you use the Guaranty Association as part of your sales pitch?
Answer: No
⩥ If the insurer is going to use a non-public source as part of the
underwriting, which two documents must be provided at the time of
, application? Answer: Notice of Information Practices and the Disclosure
Authorization
⩥ How long must the insurer maintain policyowner files/records
Answer: 5 years from date of last use
⩥ Making derogatory statements against another company with the
intent to damage their reputation is known as: Answer: Defamation
⩥ How long does an appointment with a company remain in effect?
Answer: As long as the is is licensed and the appoint insurer is
authorized
⩥ What is one of the requirements to become a life/health agent Answer:
Pass 20-hour pre-licensing class
⩥ When does using a cost index to compare products work? Answer:
When they are similar products
⩥ Can an agent sign a blank policy? Answer: No, it is a misdemeanor
⩥ Why is universal life considered interest-sensative? Answer: Cash
value earns interest on current interest rates, not guaranteed rates
