Chapter 1 - NC Life Insurance
Exam Questions and Answers
100% PASS
Adverse Selection—ANSWER---insuring of risks that are more prone to losses than the
average risk
agent/producer—ANSWER---a legal representative of an insurance company
agent—ANSWER---agents of insurer
producer—ANSWER---classification usually includes agents and brokers
applicant/proposed insured—ANSWER---person applying for insurance
attained age—ANSWER---insured's age at time the policy is issued or renewed
beneficiary—ANSWER---person who receives benefits of an insurance policy
cash value—ANSWER---policy's savings element or living benefit
death benefit—ANSWER---amount paid upon the death of the insured in a life insurance
policy
deferred—ANSWER---withheld or postponed until a specified time or event in the future
, endow—ANSWER---to have the cash value of a whole life policy reach the contractual face
amount
face amount—ANSWER---the amount of benefit stated in the life insurance policy
insured—ANSWER---person covered by the insurance policy; may or may not be the
policyowner
insurer (principal)—ANSWER---company that issues an insurance policy
lapse—ANSWER---policy termination due to nonpayment of premium
level premium—ANSWER---premium that does not change throughout the life of a policy
nonforfeiture values—ANSWER---benefits in a life insurance policy that the policy owner
cannot lose even if the policy is surrendered or lapses
policyowner—ANSWER---the person entitled to exercise the rights and privileges in the
policy
policy maturity—ANSWER---in life polices, the time when the face value is paid out
premium—ANSWER---money paid to the insurance company for the policy
securities—ANSWER---financial instruments that may trade for value (stocks, bonds,
options)
term insurance is temporary protection because—ANSWER---it only provides coverage for a
specific period of time
term insurance provides what is known as pure death protection:—ANSWER---if the insured
dies during this term, the policy pays the death benefit to the beneficiary
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
Exam Questions and Answers
100% PASS
Adverse Selection—ANSWER---insuring of risks that are more prone to losses than the
average risk
agent/producer—ANSWER---a legal representative of an insurance company
agent—ANSWER---agents of insurer
producer—ANSWER---classification usually includes agents and brokers
applicant/proposed insured—ANSWER---person applying for insurance
attained age—ANSWER---insured's age at time the policy is issued or renewed
beneficiary—ANSWER---person who receives benefits of an insurance policy
cash value—ANSWER---policy's savings element or living benefit
death benefit—ANSWER---amount paid upon the death of the insured in a life insurance
policy
deferred—ANSWER---withheld or postponed until a specified time or event in the future
, endow—ANSWER---to have the cash value of a whole life policy reach the contractual face
amount
face amount—ANSWER---the amount of benefit stated in the life insurance policy
insured—ANSWER---person covered by the insurance policy; may or may not be the
policyowner
insurer (principal)—ANSWER---company that issues an insurance policy
lapse—ANSWER---policy termination due to nonpayment of premium
level premium—ANSWER---premium that does not change throughout the life of a policy
nonforfeiture values—ANSWER---benefits in a life insurance policy that the policy owner
cannot lose even if the policy is surrendered or lapses
policyowner—ANSWER---the person entitled to exercise the rights and privileges in the
policy
policy maturity—ANSWER---in life polices, the time when the face value is paid out
premium—ANSWER---money paid to the insurance company for the policy
securities—ANSWER---financial instruments that may trade for value (stocks, bonds,
options)
term insurance is temporary protection because—ANSWER---it only provides coverage for a
specific period of time
term insurance provides what is known as pure death protection:—ANSWER---if the insured
dies during this term, the policy pays the death benefit to the beneficiary
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
