Life Insurance Exam NC
Questions and Answers 100%
PASS
Which of the following is an eligibility requirement for all social security disability income
benefits—ANSWER---Have attained fully insured status
If the Commissioner denies an initial application for an agent, how long does the applicant
have to request a review after receiving notification of the denial?—ANSWER---30 days
Traditional IRA contributions are tax deductible based on which of the following?—ANSWER-
--Owners income
Which of the following will NOT be considered unfair discrimination by insurers?—ANSWER-
--Discriminating in benefits and coverages based on the insured's habits and lifestyle
How long must a complaint record be maintained?—ANSWER---5 years
How must a replacing producer respond to an applicant wishing to replace existing life
insurance?—ANSWER---The producer must provide the applicant with a Notice Regarding
Replacement.
, Which of the following statements would best describe the different between vatical
settlements and accelerated death benefits?—ANSWER---Viaticals are funded by a third
party; accelerated death benefits are provided by the insurer that issued the original policy
A viatical settlement is arranged between a viatical company and a/an—ANSWER---
Terminally ill insured
Which of the following terms is used to name the non taxed return of unused premiums?—
ANSWER---Dividends
Under which installments option does the annuitant select the amount of each payment,
and the insurer determines how long they will pay benefits?—ANSWER---Fixed amount
Your clients wants both protection and savings from the insurance and is willing to pay
premiums until retirement at age 65. What would be the right policy for this client?—
ANSWER---Limited pay whole life
An agent and an applicant for a life insurance policy fill out and sign the application.
However, the applicant does not wish to give the agent the initial premium, no conditional
receipt is issued. When will coverage begin?—ANSWER---When the agent delivers the policy,
collects the initial premium, and the applicant completes an acceptable Statement of Good
Health
Which rule would apply if an agent knows an applicant is going to case in an old policy and
use the funds to purchase new insurance?—ANSWER---Replacement rule
Which of the following will NOT be an appropriate use of a deferred annuity?—ANSWER---
Creating an estate
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
Questions and Answers 100%
PASS
Which of the following is an eligibility requirement for all social security disability income
benefits—ANSWER---Have attained fully insured status
If the Commissioner denies an initial application for an agent, how long does the applicant
have to request a review after receiving notification of the denial?—ANSWER---30 days
Traditional IRA contributions are tax deductible based on which of the following?—ANSWER-
--Owners income
Which of the following will NOT be considered unfair discrimination by insurers?—ANSWER-
--Discriminating in benefits and coverages based on the insured's habits and lifestyle
How long must a complaint record be maintained?—ANSWER---5 years
How must a replacing producer respond to an applicant wishing to replace existing life
insurance?—ANSWER---The producer must provide the applicant with a Notice Regarding
Replacement.
, Which of the following statements would best describe the different between vatical
settlements and accelerated death benefits?—ANSWER---Viaticals are funded by a third
party; accelerated death benefits are provided by the insurer that issued the original policy
A viatical settlement is arranged between a viatical company and a/an—ANSWER---
Terminally ill insured
Which of the following terms is used to name the non taxed return of unused premiums?—
ANSWER---Dividends
Under which installments option does the annuitant select the amount of each payment,
and the insurer determines how long they will pay benefits?—ANSWER---Fixed amount
Your clients wants both protection and savings from the insurance and is willing to pay
premiums until retirement at age 65. What would be the right policy for this client?—
ANSWER---Limited pay whole life
An agent and an applicant for a life insurance policy fill out and sign the application.
However, the applicant does not wish to give the agent the initial premium, no conditional
receipt is issued. When will coverage begin?—ANSWER---When the agent delivers the policy,
collects the initial premium, and the applicant completes an acceptable Statement of Good
Health
Which rule would apply if an agent knows an applicant is going to case in an old policy and
use the funds to purchase new insurance?—ANSWER---Replacement rule
Which of the following will NOT be an appropriate use of a deferred annuity?—ANSWER---
Creating an estate
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
