NC LIFE INSURANCE PRACTICE
(2026/2027) UPDATE|EXAM
QUESTIONS WITH MULTIPLE
CHOICES |VERIFIED & REVISED
ANSWERS (NEW)!!!
AllmofmthemfollowingmaremincludedmwithinmthemInsurancemCommissioner'smdutiesmEXC
EPT
a)mConductingminvestigationmofmallmdomesticminsurers.
b)mReviewingmtheminsurers'mannualmreports.
c)mWritingmNorthmCarolinaminsurancemlaws.
d)mReportingmanymviolationsmofminsurancemlawsmtomthemAttorneymGeneral.mWritingmi
nsurancemlawmismnotmthemInsurancemCommissioner'smresponsibility,mbutmenforcingmthe
mlawmis.m-mCORRECTmANSWERmc)mWritingmNorthmCarolinaminsurancemlaws.
WritingminsurancemlawmismnotmthemInsurancemCommissioner'smresponsibility,mbutmenfo
rcingmthemlawmis.
Whichmofmthemfollowingminsurancemprovidersmmustmbemnonprofitmandmsellminsurance
monlymtomitsmmembers?
a)mReciprocal
b)mFraternal
c)mService
d)mMutualm-mCORRECTmANSWERmb)mFraternal
,Tombemcharacterizedmasmamfraternalmbenefitmsociety,mthemorganizationmmustmbemnon
profit,mhavemamlodgemsystemmthatmincludesmritualisticmworkmandmmaintainmamreprese
ntativemformmofmgovernmentmwithmelectedmofficers.mInsurancemmaymonlymbemsoldmt
ommembersmofmthemsociety.
Ammarriedmcouplemownsmampermanentmpolicymwhichmcoversmbothmofmtheirmlivesman
dmpaysmthemdeathmbenefitmonlymuponmthemdeathmofmthemfirstminsured.mWhichmpoli
cymismthat?
a)Second-to-Die
b)FamilymIncomemPolicy
c)JointmLifemPolicy
d)SurvivorshipmLifemPolicym-mCORRECTmANSWERmc)JointmLifemPolicy
Jointmlifempoliciesmcovermthemlivesmofmtwominsureds;mratesmaremblended.mUponmthe
mdeathmofmthemfirstminsured,mthempolicymends.
Theminsuredmundermam$100,000mlifeminsurancempolicymwithmamtriplemindemnitymrider
mformaccidentalmdeathmwasmkilledminmamcarmaccident.mItmwasmdeterminedmthatmthe
maccidentmwasmhismfault.mThemtriplemindemnitymriderminmthempolicymspecifiesmthatm
themdeathmmustmnotmbemcontributedmtombymtheminsuredminmanymmanner.mInmthism
case,mwhatmwillmthempolicymbeneficiarymreceive?
a)$0
b)$50,000m(50%mofmthempolicymvalue)
c)$100,000
d)$300,000m(triplemthemamountmofmpolicymvalue)m-mCORRECTmANSWERmc)$100,000
,Themtriplemindemnitymaccidentalmdeathmridermobligatesmthemcompanymtompaymthreem
timesmthemfacemamountmofmthempolicymifmtheminsuredmdiesmasmamresultmofmanmac
cident.mThemdeathmmustmbemaccidentalmandmnotmcontributedmtombymanymothermfact
orsmandmmustmoccurmwithinm90mdaysmofmthemaccident.mInmthismcase,msincemthemin
suredmcontributedmtomhismownmdeath,mthemtriplemindemnitymridermismvoid,mbutmthe
mbeneficiarymwillmstillmreceivemthempolicy'smdeathmbenefit.
Inmtermmpolicies,mwhatmhappensmtomthempremiummthroughoutmthemtermmofmthempo
licy?
a)mPremiummgraduallymincreases.
b)mPremiummgraduallymdecreases.
c)mPremiummfluctuates.
d)mPremiummalwaysmremainsmlevel.m-
mCORRECTmANSWERmd)mPremiummalwaysmremainsmlevel.
Theremaremthreembasicmtypesmofmtermmcoveragemavailable,mbasedmonmhowmthemface
mamountm(deathmbenefit)mchangesmduringmthempolicymterm:mLevel,mIncreasing,mandm
Decreasing.mRegardlessmofmthemtypemofmtermminsurancempurchased,mthempremiummis
moftenmlevelmthroughoutmthemtermmofmthempolicy.
Anminsurermneglectsmtompaymamlegitimatemclaimmthatmismcoveredmundermthemterms
mofmthempolicy.mWhichmofmthemfollowingminsurancemprinciplesmhasmtheminsurermviola
ted?
a)mRepresentation
b)mAdhesion
c)mConsideration
d)mGoodmfaithm-mCORRECTmANSWERmc)mConsideration
, Thembindingmforceminmanymcontractmismconsideration.mConsiderationmonmthempartmof
mtheminsuredmismthempaymentmofmpremiumsmandmthemhealthmrepresentationsmmade
minmthemapplication.mConsiderationmonmthempartmofmtheminsurermismthempromisemto
mpayminmthemeventmofmloss.
WhenmthembreadwinnermthatmisminsuredmbymamFamilymPolicymdies,mwhatmrightsmare
mprovidedmtomothermfamilymmembersmthatmaremcoveredmundermthempolicy?
a)mTheymcanmconvertmtheirmcoveragemtompermanentmlifeminsurancemwithmevidencemo
fminsurability
.b)mFamilymmembersmaremnotmprovidedmanymrights.
c)mTheymcanmsurrendermthemcoveragemformitsmcashmvalue.
d)mTheymcanmconvertmtheirmcoveragemtompermanentmlifeminsurancemwithoutmevidence
mofminsurability.m-
mCORRECTmANSWERmd)mTheymcanmconvertmtheirmcoveragemtompermanentmlifeminsur
ancemwithoutmevidencemofminsurability.
Familymmembersmmaymconvertmtheirmtermmcoveragemtompermanentminsurancemifmreq
uestedmwithinmthemtimemstatedminmthempolicy.
Forcingmamclientmtombuyminsurancemfrommamparticularmlendermasmamconditionmofmgr
antingmamloanmismdefinedmas
a)mDefamation.
b)mCoercion.
c)mRebating.
d)mMisleadingmadvertising.m-mCORRECTmANSWERmb)mCoercion.
(2026/2027) UPDATE|EXAM
QUESTIONS WITH MULTIPLE
CHOICES |VERIFIED & REVISED
ANSWERS (NEW)!!!
AllmofmthemfollowingmaremincludedmwithinmthemInsurancemCommissioner'smdutiesmEXC
EPT
a)mConductingminvestigationmofmallmdomesticminsurers.
b)mReviewingmtheminsurers'mannualmreports.
c)mWritingmNorthmCarolinaminsurancemlaws.
d)mReportingmanymviolationsmofminsurancemlawsmtomthemAttorneymGeneral.mWritingmi
nsurancemlawmismnotmthemInsurancemCommissioner'smresponsibility,mbutmenforcingmthe
mlawmis.m-mCORRECTmANSWERmc)mWritingmNorthmCarolinaminsurancemlaws.
WritingminsurancemlawmismnotmthemInsurancemCommissioner'smresponsibility,mbutmenfo
rcingmthemlawmis.
Whichmofmthemfollowingminsurancemprovidersmmustmbemnonprofitmandmsellminsurance
monlymtomitsmmembers?
a)mReciprocal
b)mFraternal
c)mService
d)mMutualm-mCORRECTmANSWERmb)mFraternal
,Tombemcharacterizedmasmamfraternalmbenefitmsociety,mthemorganizationmmustmbemnon
profit,mhavemamlodgemsystemmthatmincludesmritualisticmworkmandmmaintainmamreprese
ntativemformmofmgovernmentmwithmelectedmofficers.mInsurancemmaymonlymbemsoldmt
ommembersmofmthemsociety.
Ammarriedmcouplemownsmampermanentmpolicymwhichmcoversmbothmofmtheirmlivesman
dmpaysmthemdeathmbenefitmonlymuponmthemdeathmofmthemfirstminsured.mWhichmpoli
cymismthat?
a)Second-to-Die
b)FamilymIncomemPolicy
c)JointmLifemPolicy
d)SurvivorshipmLifemPolicym-mCORRECTmANSWERmc)JointmLifemPolicy
Jointmlifempoliciesmcovermthemlivesmofmtwominsureds;mratesmaremblended.mUponmthe
mdeathmofmthemfirstminsured,mthempolicymends.
Theminsuredmundermam$100,000mlifeminsurancempolicymwithmamtriplemindemnitymrider
mformaccidentalmdeathmwasmkilledminmamcarmaccident.mItmwasmdeterminedmthatmthe
maccidentmwasmhismfault.mThemtriplemindemnitymriderminmthempolicymspecifiesmthatm
themdeathmmustmnotmbemcontributedmtombymtheminsuredminmanymmanner.mInmthism
case,mwhatmwillmthempolicymbeneficiarymreceive?
a)$0
b)$50,000m(50%mofmthempolicymvalue)
c)$100,000
d)$300,000m(triplemthemamountmofmpolicymvalue)m-mCORRECTmANSWERmc)$100,000
,Themtriplemindemnitymaccidentalmdeathmridermobligatesmthemcompanymtompaymthreem
timesmthemfacemamountmofmthempolicymifmtheminsuredmdiesmasmamresultmofmanmac
cident.mThemdeathmmustmbemaccidentalmandmnotmcontributedmtombymanymothermfact
orsmandmmustmoccurmwithinm90mdaysmofmthemaccident.mInmthismcase,msincemthemin
suredmcontributedmtomhismownmdeath,mthemtriplemindemnitymridermismvoid,mbutmthe
mbeneficiarymwillmstillmreceivemthempolicy'smdeathmbenefit.
Inmtermmpolicies,mwhatmhappensmtomthempremiummthroughoutmthemtermmofmthempo
licy?
a)mPremiummgraduallymincreases.
b)mPremiummgraduallymdecreases.
c)mPremiummfluctuates.
d)mPremiummalwaysmremainsmlevel.m-
mCORRECTmANSWERmd)mPremiummalwaysmremainsmlevel.
Theremaremthreembasicmtypesmofmtermmcoveragemavailable,mbasedmonmhowmthemface
mamountm(deathmbenefit)mchangesmduringmthempolicymterm:mLevel,mIncreasing,mandm
Decreasing.mRegardlessmofmthemtypemofmtermminsurancempurchased,mthempremiummis
moftenmlevelmthroughoutmthemtermmofmthempolicy.
Anminsurermneglectsmtompaymamlegitimatemclaimmthatmismcoveredmundermthemterms
mofmthempolicy.mWhichmofmthemfollowingminsurancemprinciplesmhasmtheminsurermviola
ted?
a)mRepresentation
b)mAdhesion
c)mConsideration
d)mGoodmfaithm-mCORRECTmANSWERmc)mConsideration
, Thembindingmforceminmanymcontractmismconsideration.mConsiderationmonmthempartmof
mtheminsuredmismthempaymentmofmpremiumsmandmthemhealthmrepresentationsmmade
minmthemapplication.mConsiderationmonmthempartmofmtheminsurermismthempromisemto
mpayminmthemeventmofmloss.
WhenmthembreadwinnermthatmisminsuredmbymamFamilymPolicymdies,mwhatmrightsmare
mprovidedmtomothermfamilymmembersmthatmaremcoveredmundermthempolicy?
a)mTheymcanmconvertmtheirmcoveragemtompermanentmlifeminsurancemwithmevidencemo
fminsurability
.b)mFamilymmembersmaremnotmprovidedmanymrights.
c)mTheymcanmsurrendermthemcoveragemformitsmcashmvalue.
d)mTheymcanmconvertmtheirmcoveragemtompermanentmlifeminsurancemwithoutmevidence
mofminsurability.m-
mCORRECTmANSWERmd)mTheymcanmconvertmtheirmcoveragemtompermanentmlifeminsur
ancemwithoutmevidencemofminsurability.
Familymmembersmmaymconvertmtheirmtermmcoveragemtompermanentminsurancemifmreq
uestedmwithinmthemtimemstatedminmthempolicy.
Forcingmamclientmtombuyminsurancemfrommamparticularmlendermasmamconditionmofmgr
antingmamloanmismdefinedmas
a)mDefamation.
b)mCoercion.
c)mRebating.
d)mMisleadingmadvertising.m-mCORRECTmANSWERmb)mCoercion.
