Life Insurance Exam- NC
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; the
classification of producer usually includes agents and brokers; agents are the agents of the
insurer
Applicant or proposed insured—ANSWER--a person applying for insurance
beneficiary—ANSWER--one who receives benefits of the insurance policy
cash value—ANSWER--a policy's saving element or living benefit
death benefit—ANSWER--the 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--A person covered by an insurance policy; may or may not be the
policymaker
Insurer (principal)—ANSWER--the company who issues an insurance policy
lapse—ANSWER--policy termination due to nonpayment of premium
level premium—ANSWER--the premium that does not change throughout the life of a policy
Nonforfeiture Values—ANSWER--benefits in a life insurance policy that the policyowner
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 policies, the time when the face value is paid out
Premium—ANSWER--the money paid to the insurance company for the insurance policy
securities—ANSWER--financial instruments that may trade for value (for example, stocks,
bonds, options)
What type of life policy is typically issued without proof of insurability from the insured?—
ANSWER--Group policy
What type of insurance offers pure death protection?—ANSWER--Term
Who is entitled to the cash values in a life insurance policy?—ANSWER--Policyowner
A policy states that it will pay a specified face amount if the insured dies during the 20 year
premium-paying period and nothing if death occurs after the 20 year period. What type of
policy is this?—ANSWER--20-year level term
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
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; the
classification of producer usually includes agents and brokers; agents are the agents of the
insurer
Applicant or proposed insured—ANSWER--a person applying for insurance
beneficiary—ANSWER--one who receives benefits of the insurance policy
cash value—ANSWER--a policy's saving element or living benefit
death benefit—ANSWER--the 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--A person covered by an insurance policy; may or may not be the
policymaker
Insurer (principal)—ANSWER--the company who issues an insurance policy
lapse—ANSWER--policy termination due to nonpayment of premium
level premium—ANSWER--the premium that does not change throughout the life of a policy
Nonforfeiture Values—ANSWER--benefits in a life insurance policy that the policyowner
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 policies, the time when the face value is paid out
Premium—ANSWER--the money paid to the insurance company for the insurance policy
securities—ANSWER--financial instruments that may trade for value (for example, stocks,
bonds, options)
What type of life policy is typically issued without proof of insurability from the insured?—
ANSWER--Group policy
What type of insurance offers pure death protection?—ANSWER--Term
Who is entitled to the cash values in a life insurance policy?—ANSWER--Policyowner
A policy states that it will pay a specified face amount if the insured dies during the 20 year
premium-paying period and nothing if death occurs after the 20 year period. What type of
policy is this?—ANSWER--20-year level term
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
