NC Life Insurance Practice Exam Questions 2026 comprehensive question
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1. All of the following are included within the Insur- c) Writing North Carolina insur-
ance Commissioner's duties EXCEPT ance laws.
a) Conducting investigation of all domestic insur- Writing insurance law is not the
ers. Insurance Commissioner's re-
b) Reviewing the insurers' annual reports. sponsibility, but enforcing the
c) Writing North Carolina insurance laws. law is.
d) Reporting any violations of insurance laws to
the Attorney General. Writing insurance law is not
the Insurance Commissioner's responsibility, but
enforcing the law is.
2. Which of the following insurance providers must b) Fraternal
be nonprofit and sell insurance only to its mem-
bers? To be characterized as a frater-
nal benefit society, the organi-
a) Reciprocal zation must be nonprofit, have a
b) Fraternal lodge system that includes ritu-
c) Service alistic work and maintain a rep-
d) Mutual resentative form of government
with elected officers. Insurance
may only be sold to members of
the society.
3. A married couple owns a permanent policy which c)Joint Life Policy
covers both of their lives and pays the death ben-
efit only upon the death of the first insured. Which Joint life policies cover the
policy is that? lives of two insureds; rates are
blended. Upon the death of the
a)Second-to-Die first insured, the policy ends.
b)Family Income Policy
, NC Life Insurance Practice Exam Questions 2026 comprehensive question
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c)Joint Life Policy
d)Survivorship Life Policy
4. The insured under a $100,000 life insurance policy c)$100,000
with a triple indemnity rider for accidental death
was killed in a car accident. It was determined that The triple indemnity accidental
the accident was his fault. The triple indemnity death rider obligates the com-
rider in the policy specifies that the death must not pany to pay three times the face
be contributed to by the insured in any manner. In amount of the policy if the in-
this case, what will the policy beneficiary receive? sured dies as a result of an ac-
cident. The death must be ac-
a)$0 cidental and not contributed to
b)$50,000 (50% of the policy value) by any other factors and must
c)$100,000 occur within 90 days of the ac-
d)$300,000 (triple the amount of policy value) cident. In this case, since the
insured contributed to his own
death, the triple indemnity rider
is void, but the beneficiary will
still receive the policy's death
benefit.
5. In term policies, what happens to the premium d) Premium always remains lev-
throughout the term of the policy? el.
a) Premium gradually increases. There are three basic types of
b) Premium gradually decreases. term coverage available, based
c) Premium fluctuates. on how the face amount (death
d) Premium always remains level. benefit) changes during the
policy term: Level, Increasing,
and Decreasing. Regardless of
the type of term insurance pur-
chased, the premium is often
, NC Life Insurance Practice Exam Questions 2026 comprehensive question
and verified answers/ complete solutions|get it 100% accurate
Study online at https://quizlet.com/_j92v13
level throughout the term of the
policy.
6. An insurer neglects to pay a legitimate claim that c) Consideration
is covered under the terms of the policy. Which of
the following insurance principles has the insurer The binding force in any con-
violated? tract is consideration. Consid-
eration on the part of the in-
a) Representation sured is the payment of premi-
b) Adhesion ums and the health represen-
c) Consideration tations made in the application.
d) Good faith Consideration on the part of the
insurer is the promise to pay in
the event of loss.
7. When the breadwinner that is insured by a Family d) They can convert their cover-
Policy dies, what rights are provided to other fam- age to permanent life insurance
ily members that are covered under the policy? without evidence of insurabili-
ty.
a) They can convert their coverage to permanent
life insurance with evidence of insurability Family members may convert
.b) Family members are not provided any rights. their term coverage to per-
c) They can surrender the coverage for its cash manent insurance if requested
value. within the time stated in the
d) They can convert their coverage to permanent policy.
life insurance without evidence of insurability.
8. Forcing a client to buy insurance from a particular b) Coercion.
lender as a condition of granting a loan is defined
as These are all considered to be
Unfair Trade Practices, which
a) Defamation. are major violations that can
, NC Life Insurance Practice Exam Questions 2026 comprehensive question
and verified answers/ complete solutions|get it 100% accurate
Study online at https://quizlet.com/_j92v13
b) Coercion. lead to heavy penalties. Coer-
c) Rebating. cion, for example, is when the
d) Misleading advertising. bank won't give you an auto
loan unless you agree to buy
auto insurance from them.
9. When an insurer requires a written proof of loss b) Furnish a blank form to be
after notice of such loss has been given by the used for that purpose.
insured or beneficiary, the company must
When any company under any
a) Request a police report from the Department of insurance policy requires a writ-
Motor Vehicles. ten proof of loss after notice of
b) Furnish a blank form to be used for that pur- such loss has been given by the
pose. insured or beneficiary, the com-
c) Document the request for further investigation. pany or its representative must
d) Submit the loss claim to underwriting for premi- furnish a blank form to be used
um review and resolution. for that purpose.
10. Insurance companies are required to provide a) 15
proof of loss forms to the claimant within how
many days after receipt of notice of loss? When any company under any
insurance policy requires a writ-
a) 15 ten proof of loss after notice of
b) 30 the loss has been given by the
c) 31 insured or beneficiary, the com-
d) 45 pany must furnish a blank form
within 15 days.
11. Which is true about a spouse term rider? a) The rider is usually level term
insurance.
a) The rider is usually level term insurance.
b) Coverage is allowed for an unlimited time. The spouse term rider allows a
and verified answers/ complete solutions|get it 100% accurate
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1. All of the following are included within the Insur- c) Writing North Carolina insur-
ance Commissioner's duties EXCEPT ance laws.
a) Conducting investigation of all domestic insur- Writing insurance law is not the
ers. Insurance Commissioner's re-
b) Reviewing the insurers' annual reports. sponsibility, but enforcing the
c) Writing North Carolina insurance laws. law is.
d) Reporting any violations of insurance laws to
the Attorney General. Writing insurance law is not
the Insurance Commissioner's responsibility, but
enforcing the law is.
2. Which of the following insurance providers must b) Fraternal
be nonprofit and sell insurance only to its mem-
bers? To be characterized as a frater-
nal benefit society, the organi-
a) Reciprocal zation must be nonprofit, have a
b) Fraternal lodge system that includes ritu-
c) Service alistic work and maintain a rep-
d) Mutual resentative form of government
with elected officers. Insurance
may only be sold to members of
the society.
3. A married couple owns a permanent policy which c)Joint Life Policy
covers both of their lives and pays the death ben-
efit only upon the death of the first insured. Which Joint life policies cover the
policy is that? lives of two insureds; rates are
blended. Upon the death of the
a)Second-to-Die first insured, the policy ends.
b)Family Income Policy
, NC Life Insurance Practice Exam Questions 2026 comprehensive question
and verified answers/ complete solutions|get it 100% accurate
Study online at https://quizlet.com/_j92v13
c)Joint Life Policy
d)Survivorship Life Policy
4. The insured under a $100,000 life insurance policy c)$100,000
with a triple indemnity rider for accidental death
was killed in a car accident. It was determined that The triple indemnity accidental
the accident was his fault. The triple indemnity death rider obligates the com-
rider in the policy specifies that the death must not pany to pay three times the face
be contributed to by the insured in any manner. In amount of the policy if the in-
this case, what will the policy beneficiary receive? sured dies as a result of an ac-
cident. The death must be ac-
a)$0 cidental and not contributed to
b)$50,000 (50% of the policy value) by any other factors and must
c)$100,000 occur within 90 days of the ac-
d)$300,000 (triple the amount of policy value) cident. In this case, since the
insured contributed to his own
death, the triple indemnity rider
is void, but the beneficiary will
still receive the policy's death
benefit.
5. In term policies, what happens to the premium d) Premium always remains lev-
throughout the term of the policy? el.
a) Premium gradually increases. There are three basic types of
b) Premium gradually decreases. term coverage available, based
c) Premium fluctuates. on how the face amount (death
d) Premium always remains level. benefit) changes during the
policy term: Level, Increasing,
and Decreasing. Regardless of
the type of term insurance pur-
chased, the premium is often
, NC Life Insurance Practice Exam Questions 2026 comprehensive question
and verified answers/ complete solutions|get it 100% accurate
Study online at https://quizlet.com/_j92v13
level throughout the term of the
policy.
6. An insurer neglects to pay a legitimate claim that c) Consideration
is covered under the terms of the policy. Which of
the following insurance principles has the insurer The binding force in any con-
violated? tract is consideration. Consid-
eration on the part of the in-
a) Representation sured is the payment of premi-
b) Adhesion ums and the health represen-
c) Consideration tations made in the application.
d) Good faith Consideration on the part of the
insurer is the promise to pay in
the event of loss.
7. When the breadwinner that is insured by a Family d) They can convert their cover-
Policy dies, what rights are provided to other fam- age to permanent life insurance
ily members that are covered under the policy? without evidence of insurabili-
ty.
a) They can convert their coverage to permanent
life insurance with evidence of insurability Family members may convert
.b) Family members are not provided any rights. their term coverage to per-
c) They can surrender the coverage for its cash manent insurance if requested
value. within the time stated in the
d) They can convert their coverage to permanent policy.
life insurance without evidence of insurability.
8. Forcing a client to buy insurance from a particular b) Coercion.
lender as a condition of granting a loan is defined
as These are all considered to be
Unfair Trade Practices, which
a) Defamation. are major violations that can
, NC Life Insurance Practice Exam Questions 2026 comprehensive question
and verified answers/ complete solutions|get it 100% accurate
Study online at https://quizlet.com/_j92v13
b) Coercion. lead to heavy penalties. Coer-
c) Rebating. cion, for example, is when the
d) Misleading advertising. bank won't give you an auto
loan unless you agree to buy
auto insurance from them.
9. When an insurer requires a written proof of loss b) Furnish a blank form to be
after notice of such loss has been given by the used for that purpose.
insured or beneficiary, the company must
When any company under any
a) Request a police report from the Department of insurance policy requires a writ-
Motor Vehicles. ten proof of loss after notice of
b) Furnish a blank form to be used for that pur- such loss has been given by the
pose. insured or beneficiary, the com-
c) Document the request for further investigation. pany or its representative must
d) Submit the loss claim to underwriting for premi- furnish a blank form to be used
um review and resolution. for that purpose.
10. Insurance companies are required to provide a) 15
proof of loss forms to the claimant within how
many days after receipt of notice of loss? When any company under any
insurance policy requires a writ-
a) 15 ten proof of loss after notice of
b) 30 the loss has been given by the
c) 31 insured or beneficiary, the com-
d) 45 pany must furnish a blank form
within 15 days.
11. Which is true about a spouse term rider? a) The rider is usually level term
insurance.
a) The rider is usually level term insurance.
b) Coverage is allowed for an unlimited time. The spouse term rider allows a
