NC Life Insurance Exam Prep Newest 2026 Questions
and Correct Detailed Answers Already Graded A+
A 42 year old executive wants to purchase life insurance that will allow for
increases or decreases to coverage as his/her needs change. Which of the
following policies will best meet this need? - CORRECT ANSWER-Universal life
What kind of life insurance policy pays a specified monthly income to a
beneficiary for 30 years and then pays a lump sum benefit at the end of that 30
years? - CORRECT ANSWER-Family Maintenance Policy
The fund that assures policyholders payment of death benefits on Life Policies, if
the company is insolvent at the same time of the claim, is called the - CORRECT
ANSWER-Life and Health Insurance Guaranty Association
A policy that becomes a Modified Endowment Contract (MEC) - CORRECT
ANSWER-Will lose many of its tax advantage
Which provision allows the policy owner to change a term life policy to a
permanent one without providing proof of health? - CORRECT ANSWER-
Conversion
,T applies for a life insurance policy and is told by the producer that the insurer is
bound to the coverage as of the date of the application or medical examination,
whichever is later. Assuming that T is an acceptable risk, what item is given to T? -
CORRECT ANSWER-Conditional receipt; Binds the insurer to coverage as of the
date of the application or medical exam, provided the proposed insured is
determined to be an acceptable risk.
An insurance company MUST clearly specify questions designed to obtain
information solely for marketing research - CORRECT ANSWER-In any
insurance transactions
In a life insurance policy which provision states who may select policy options,
designate and name a beneficiary, and be the recipient of any financial benefits
from the policy? - CORRECT ANSWER-Owner's rights
No insurer shall refuse to insure an individual because of - CORRECT ANSWER-
Race
An agent who sells an individual life insurance policy in NC MUST deliver to the
policyowner - CORRECT ANSWER-A policy summary and buyer's guide
,All of the following actions are considered rebating EXCEPT - CORRECT
ANSWER-Sharing commissions with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide? -
CORRECT ANSWER-Premiums are waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance -
CORRECT ANSWER-Is guilty of a misdemeanor
A person is required to be AT LEAST how old before he or she is licensed as an
agent in NC? - CORRECT ANSWER-18
In a life insurance policy, which feature states that the policy will not cover certain
risks? - CORRECT ANSWER-Exclusion
Whole Life insurance are contractually guaranteed to provide each of the
following EXCEPT? - CORRECT ANSWER-Partial withdrawal features beyond a
surrender charge period
A term life insurance policy matures - CORRECT ANSWER-Upon the insured's
death during the term of the policy
, Which of these provisions require proof of insurability after a policy has lapsed? -
CORRECT ANSWER-Reinstatement
How does a typical Variable Life Policy Investment account grow? - CORRECT
ANSWER-Through mutual funds, stocks, and bonds
Circulation of any oral or written statement or any pamphlet, circular, article or
literature that is false or maliciously critical of or derogatory to the financial
condition of an insurer is known as - CORRECT ANSWER-Defamation
All of the following are considered characteristics describing the nature of an
insurance contract EXCEPT - CORRECT ANSWER-Bilateral
A 15-year mortgage is best protected by what kind of life policy? - CORRECT
ANSWER-15-year decreasing term
Companies in NC may transact solicitations for insurance ONLY through -
CORRECT ANSWER-Licensed agents
and Correct Detailed Answers Already Graded A+
A 42 year old executive wants to purchase life insurance that will allow for
increases or decreases to coverage as his/her needs change. Which of the
following policies will best meet this need? - CORRECT ANSWER-Universal life
What kind of life insurance policy pays a specified monthly income to a
beneficiary for 30 years and then pays a lump sum benefit at the end of that 30
years? - CORRECT ANSWER-Family Maintenance Policy
The fund that assures policyholders payment of death benefits on Life Policies, if
the company is insolvent at the same time of the claim, is called the - CORRECT
ANSWER-Life and Health Insurance Guaranty Association
A policy that becomes a Modified Endowment Contract (MEC) - CORRECT
ANSWER-Will lose many of its tax advantage
Which provision allows the policy owner to change a term life policy to a
permanent one without providing proof of health? - CORRECT ANSWER-
Conversion
,T applies for a life insurance policy and is told by the producer that the insurer is
bound to the coverage as of the date of the application or medical examination,
whichever is later. Assuming that T is an acceptable risk, what item is given to T? -
CORRECT ANSWER-Conditional receipt; Binds the insurer to coverage as of the
date of the application or medical exam, provided the proposed insured is
determined to be an acceptable risk.
An insurance company MUST clearly specify questions designed to obtain
information solely for marketing research - CORRECT ANSWER-In any
insurance transactions
In a life insurance policy which provision states who may select policy options,
designate and name a beneficiary, and be the recipient of any financial benefits
from the policy? - CORRECT ANSWER-Owner's rights
No insurer shall refuse to insure an individual because of - CORRECT ANSWER-
Race
An agent who sells an individual life insurance policy in NC MUST deliver to the
policyowner - CORRECT ANSWER-A policy summary and buyer's guide
,All of the following actions are considered rebating EXCEPT - CORRECT
ANSWER-Sharing commissions with other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy provide? -
CORRECT ANSWER-Premiums are waived if payor becomes disabled
An agent who signs a blank contract application or policy of insurance -
CORRECT ANSWER-Is guilty of a misdemeanor
A person is required to be AT LEAST how old before he or she is licensed as an
agent in NC? - CORRECT ANSWER-18
In a life insurance policy, which feature states that the policy will not cover certain
risks? - CORRECT ANSWER-Exclusion
Whole Life insurance are contractually guaranteed to provide each of the
following EXCEPT? - CORRECT ANSWER-Partial withdrawal features beyond a
surrender charge period
A term life insurance policy matures - CORRECT ANSWER-Upon the insured's
death during the term of the policy
, Which of these provisions require proof of insurability after a policy has lapsed? -
CORRECT ANSWER-Reinstatement
How does a typical Variable Life Policy Investment account grow? - CORRECT
ANSWER-Through mutual funds, stocks, and bonds
Circulation of any oral or written statement or any pamphlet, circular, article or
literature that is false or maliciously critical of or derogatory to the financial
condition of an insurer is known as - CORRECT ANSWER-Defamation
All of the following are considered characteristics describing the nature of an
insurance contract EXCEPT - CORRECT ANSWER-Bilateral
A 15-year mortgage is best protected by what kind of life policy? - CORRECT
ANSWER-15-year decreasing term
Companies in NC may transact solicitations for insurance ONLY through -
CORRECT ANSWER-Licensed agents
