Comprehensive NC Insurance
Exam: Life, Annuities, and Policy
Provisions Exam Questions and
Answers 100% PASS
What is a Tax Sheltered Annuity (TSA)?—ANSWER---A retirement savings plan available to
public school employees.
Are contributions to a TSA tax-deductible?—ANSWER---Yes, contributions to the TSA are tax-
deductible.
Is income derived from a TSA received tax-free?—ANSWER---No, income from a TSA is
treated as ordinary income upon retirement.
What is a characteristic of a Variable Annuity?—ANSWER---It involves underlying equity
investments.
How are group life insurance policies generally written?—ANSWER---As annually renewable
term.
What is true about an Individual Straight Life annuity?—ANSWER---Payments are made to an
annuitant for life.
What is NOT included in an annuity contract?—ANSWER---AD&D rider.
, What type of annuity can be purchased with one monetary deposit?—ANSWER---Single
Premium annuity.
What type of annuity does Q own if payments are no less than $250 quarterly?—ANSWER---
Flexible Installment Deferred annuity.
What do individuals covered under a group contract receive?—ANSWER---Certificate of
coverage.
What type of annuity did P NOT buy if she wants a lifetime income stream beginning at age
sixty?—ANSWER---An immediate annuity.
Who makes legally enforceable promises in a unilateral insurance policy?—ANSWER---
Insurance company.
What type of annuity did the woman who won $100,000 purchase if it pays $1,500 per
month beginning at age 60?—ANSWER---Deferred Fixed annuity.
What is an element of a Single Premium annuity?—ANSWER---Lump-sum payment.
What type of annuity pays out a guaranteed amount for life starting at a future date?—
ANSWER---Fixed Deferred annuity.
What is required in third-party ownership when the applicant is also the primary
beneficiary?—ANSWER---Insurable interest in the proposed insured.
What type of annuity pays benefits based on units rather than stated dollar amounts?—
ANSWER---Variable annuity.
What does the insurer promise in the Consideration clause of a life policy?—ANSWER---To
pay a death benefit to a named beneficiary.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
Exam: Life, Annuities, and Policy
Provisions Exam Questions and
Answers 100% PASS
What is a Tax Sheltered Annuity (TSA)?—ANSWER---A retirement savings plan available to
public school employees.
Are contributions to a TSA tax-deductible?—ANSWER---Yes, contributions to the TSA are tax-
deductible.
Is income derived from a TSA received tax-free?—ANSWER---No, income from a TSA is
treated as ordinary income upon retirement.
What is a characteristic of a Variable Annuity?—ANSWER---It involves underlying equity
investments.
How are group life insurance policies generally written?—ANSWER---As annually renewable
term.
What is true about an Individual Straight Life annuity?—ANSWER---Payments are made to an
annuitant for life.
What is NOT included in an annuity contract?—ANSWER---AD&D rider.
, What type of annuity can be purchased with one monetary deposit?—ANSWER---Single
Premium annuity.
What type of annuity does Q own if payments are no less than $250 quarterly?—ANSWER---
Flexible Installment Deferred annuity.
What do individuals covered under a group contract receive?—ANSWER---Certificate of
coverage.
What type of annuity did P NOT buy if she wants a lifetime income stream beginning at age
sixty?—ANSWER---An immediate annuity.
Who makes legally enforceable promises in a unilateral insurance policy?—ANSWER---
Insurance company.
What type of annuity did the woman who won $100,000 purchase if it pays $1,500 per
month beginning at age 60?—ANSWER---Deferred Fixed annuity.
What is an element of a Single Premium annuity?—ANSWER---Lump-sum payment.
What type of annuity pays out a guaranteed amount for life starting at a future date?—
ANSWER---Fixed Deferred annuity.
What is required in third-party ownership when the applicant is also the primary
beneficiary?—ANSWER---Insurable interest in the proposed insured.
What type of annuity pays benefits based on units rather than stated dollar amounts?—
ANSWER---Variable annuity.
What does the insurer promise in the Consideration clause of a life policy?—ANSWER---To
pay a death benefit to a named beneficiary.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
