NC Life Insurance Exam ACTUAL
EXAM 2025 | North Carolina Life
Insurance | Verified Q&A | Pass
Guaranteed - A+ Graded
Section 1: North Carolina State Insurance Laws & Regulations
Q1: In North Carolina, what is the required "free look" period for a newly issued life insurance policy?
A. 5 days.
B. 10 days.
C. 20 days.
D. 30 days.
Correct Answer: B
Rationale: North Carolina law mandates a minimum "free look" provision of 10 days for life insurance
policies, allowing the policyowner to review the contract and return it for a full premium refund if
unsatisfied.
Q2: Which of the following statements regarding the grace period for life insurance policies in North
Carolina is CORRECT?
A. The grace period is optional and determined by the insurer.
B. The grace period is a minimum of 30 days for all life insurance policies.
C. The grace period is a minimum of 31 days for all life insurance policies.
,D. There is no legal requirement for a grace period.
Correct Answer: B
Rationale: Under North Carolina insurance law, a grace period of one month (30 days) is required for all
life insurance policies, during which the policy remains in force even if the premium is overdue.
Q3: For how long must a life insurance company maintain records of transactions involving a policy
issued in North Carolina?
A. 3 years.
B. 5 years.
C. 7 years.
D. 10 years.
Correct Answer: B
Rationale: Insurers must keep records of all policies and transactions for a minimum of 5 years after the
termination of the policy or the last transaction to ensure compliance and audit capabilities.
Q4: A producer in North Carolina is acting as an agent for a life insurance company. Who is legally
responsible for the acts of the producer?
A. The producer only.
B. The Commissioner of Insurance.
C. The insurer (principal).
D. The policyowner.
Correct Answer: C
Rationale: Under the concept of agency, the principal (insurer) is responsible for the acts of the agent
(producer) performed within the scope of their authority.
Q5: In North Carolina, a producer's license must be renewed:
A. Every year.
, B. Every 2 years.
C. Every 3 years.
D. Every 4 years.
Correct Answer: B
Rationale: Insurance producer licenses in North Carolina are issued for a term of 2 years and must be
renewed biennially by the last day of the licensee's birth month.
Q6: What is the Continuing Education (CE) requirement for a North Carolina life insurance producer?
A. 10 hours every 2 years.
B. 24 hours every 2 years, including 3 hours of ethics.
C. 30 hours every 2 years.
D. No CE is required after the license is issued.
Correct Answer: B
Rationale: Licensed producers must complete 24 hours of continuing education every 2 years, with at
least 3 of those hours dedicated to ethics courses.
Q7: If a life insurance policy contains a "misstatement of age" clause and the insured dies, how will the
insurer adjust the claim?
A. The policy will be voided.
B. The insurer will pay the full death benefit.
C. The insurer will adjust the death benefit to reflect the premium paid for the correct age.
D. The insurer will refund all premiums paid.
Correct Answer: C
Rationale: Under the misstatement of age provision, if the insured's age is misstated, the death benefit
payable is adjusted to the amount that the premium would have purchased at the correct age.
EXAM 2025 | North Carolina Life
Insurance | Verified Q&A | Pass
Guaranteed - A+ Graded
Section 1: North Carolina State Insurance Laws & Regulations
Q1: In North Carolina, what is the required "free look" period for a newly issued life insurance policy?
A. 5 days.
B. 10 days.
C. 20 days.
D. 30 days.
Correct Answer: B
Rationale: North Carolina law mandates a minimum "free look" provision of 10 days for life insurance
policies, allowing the policyowner to review the contract and return it for a full premium refund if
unsatisfied.
Q2: Which of the following statements regarding the grace period for life insurance policies in North
Carolina is CORRECT?
A. The grace period is optional and determined by the insurer.
B. The grace period is a minimum of 30 days for all life insurance policies.
C. The grace period is a minimum of 31 days for all life insurance policies.
,D. There is no legal requirement for a grace period.
Correct Answer: B
Rationale: Under North Carolina insurance law, a grace period of one month (30 days) is required for all
life insurance policies, during which the policy remains in force even if the premium is overdue.
Q3: For how long must a life insurance company maintain records of transactions involving a policy
issued in North Carolina?
A. 3 years.
B. 5 years.
C. 7 years.
D. 10 years.
Correct Answer: B
Rationale: Insurers must keep records of all policies and transactions for a minimum of 5 years after the
termination of the policy or the last transaction to ensure compliance and audit capabilities.
Q4: A producer in North Carolina is acting as an agent for a life insurance company. Who is legally
responsible for the acts of the producer?
A. The producer only.
B. The Commissioner of Insurance.
C. The insurer (principal).
D. The policyowner.
Correct Answer: C
Rationale: Under the concept of agency, the principal (insurer) is responsible for the acts of the agent
(producer) performed within the scope of their authority.
Q5: In North Carolina, a producer's license must be renewed:
A. Every year.
, B. Every 2 years.
C. Every 3 years.
D. Every 4 years.
Correct Answer: B
Rationale: Insurance producer licenses in North Carolina are issued for a term of 2 years and must be
renewed biennially by the last day of the licensee's birth month.
Q6: What is the Continuing Education (CE) requirement for a North Carolina life insurance producer?
A. 10 hours every 2 years.
B. 24 hours every 2 years, including 3 hours of ethics.
C. 30 hours every 2 years.
D. No CE is required after the license is issued.
Correct Answer: B
Rationale: Licensed producers must complete 24 hours of continuing education every 2 years, with at
least 3 of those hours dedicated to ethics courses.
Q7: If a life insurance policy contains a "misstatement of age" clause and the insured dies, how will the
insurer adjust the claim?
A. The policy will be voided.
B. The insurer will pay the full death benefit.
C. The insurer will adjust the death benefit to reflect the premium paid for the correct age.
D. The insurer will refund all premiums paid.
Correct Answer: C
Rationale: Under the misstatement of age provision, if the insured's age is misstated, the death benefit
payable is adjusted to the amount that the premium would have purchased at the correct age.
