Pearson VUE - NC Life Insurance
Practice Exam Questions | 2026/2027
Edition | Verified Questions & Correct
Answers | State Licensing Preparation
This North Carolina (NC) Life Insurance Exam is a 130 Q&A, comprehensive,
proctored test designed to evaluate the knowledge of prospective agents on life
insurance products, policy provisions, and state-specific regulations. Candidates must
pass the Actual exam to obtain their license, usually through Pearson VUE.
1. Actual Exam Description and Content Outline (2026)
Total Questions: 55 scorable, four-option multiple-choice questions, plus up to 5
unscored pretest questions.
Time Limit: Usually 1.5 to 2 hours (depending on specific Pearson VUE
scheduling).
Passing Score: Typically 70% or higher.
Key Topics Tested:
Types of Individual Life Insurance (Term, Whole Life, Endowment,
Variable): Covers policy features and structures.
Annuities: Annuity principles, types, and features.
Policy Provisions, Options, and Riders: Beneficiary, loans, nonforfeiture,
settlement options, and riders.
Underwriting and Policy Delivery: Applications, risk evaluation, and delivery
rules.
Taxation and Qualified Plans: Tax treatment of premiums and benefits.
NC State Law & Regulations: Commissioner duties, licensing, and ethical
practice
Quiz_________________?
1
, All of the following are included within the Insurance Commissioner's duties
EXCEPT
a) Conducting investigation of all domestic insurers.
b) Reviewing the insurers' annual reports.
c) Writing North Carolina insurance laws.
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. -
Answer
c) Writing North Carolina insurance laws.
Writing insurance law is not the Insurance Commissioner's responsibility, but
enforcing the law is.
Quiz_________________?
Which of the following insurance providers must be nonprofit and sell insurance
only to its members?
a) Reciprocal
b) Fraternal
c) Service
d) Mutual -
Answer
b) Fraternal
2
, To be characterized as a fraternal benefit society, the organization must be
nonprofit, have a lodge system that includes ritualistic work and maintain a
representative form of government with elected officers. Insurance may only be
sold to members of the society.
Quiz_________________?
A married couple owns a permanent policy which covers both of their lives and
pays the death benefit only upon the death of the first insured. Which policy is
that?
a)Second-to-Die
b)Family Income Policy
c)Joint Life Policy
d)Survivorship Life Policy -
Answer
c)Joint Life Policy
Joint life policies cover the lives of two insureds; rates are blended. Upon the
death of the first insured, the policy ends.
Quiz_________________?
The insured under a $100,000 life insurance policy with a triple indemnity rider
for accidental death was killed in a car accident. It was determined that the
accident was his fault. The triple indemnity rider in the policy specifies that the
death must not be contributed to by the insured in any manner. In this case, what
will the policy beneficiary receive?
3
, a)$0
b)$50,000 (50% of the policy value)
c)$100,000
d)$300,000 (triple the amount of policy value) -
Answer
c)$100,000
The triple indemnity accidental death rider obligates the company to pay three
times the face amount of the policy if the insured dies as a result of an accident.
The death must be accidental and not contributed to by any other factors and
must occur within 90 days of the accident. 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.
Quiz_________________?
In term policies, what happens to the premium throughout the term of the policy?
a) Premium gradually increases.
b) Premium gradually decreases.
c) Premium fluctuates.
d) Premium always remains level. -
Answer
d) Premium always remains level.
4
Practice Exam Questions | 2026/2027
Edition | Verified Questions & Correct
Answers | State Licensing Preparation
This North Carolina (NC) Life Insurance Exam is a 130 Q&A, comprehensive,
proctored test designed to evaluate the knowledge of prospective agents on life
insurance products, policy provisions, and state-specific regulations. Candidates must
pass the Actual exam to obtain their license, usually through Pearson VUE.
1. Actual Exam Description and Content Outline (2026)
Total Questions: 55 scorable, four-option multiple-choice questions, plus up to 5
unscored pretest questions.
Time Limit: Usually 1.5 to 2 hours (depending on specific Pearson VUE
scheduling).
Passing Score: Typically 70% or higher.
Key Topics Tested:
Types of Individual Life Insurance (Term, Whole Life, Endowment,
Variable): Covers policy features and structures.
Annuities: Annuity principles, types, and features.
Policy Provisions, Options, and Riders: Beneficiary, loans, nonforfeiture,
settlement options, and riders.
Underwriting and Policy Delivery: Applications, risk evaluation, and delivery
rules.
Taxation and Qualified Plans: Tax treatment of premiums and benefits.
NC State Law & Regulations: Commissioner duties, licensing, and ethical
practice
Quiz_________________?
1
, All of the following are included within the Insurance Commissioner's duties
EXCEPT
a) Conducting investigation of all domestic insurers.
b) Reviewing the insurers' annual reports.
c) Writing North Carolina insurance laws.
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. -
Answer
c) Writing North Carolina insurance laws.
Writing insurance law is not the Insurance Commissioner's responsibility, but
enforcing the law is.
Quiz_________________?
Which of the following insurance providers must be nonprofit and sell insurance
only to its members?
a) Reciprocal
b) Fraternal
c) Service
d) Mutual -
Answer
b) Fraternal
2
, To be characterized as a fraternal benefit society, the organization must be
nonprofit, have a lodge system that includes ritualistic work and maintain a
representative form of government with elected officers. Insurance may only be
sold to members of the society.
Quiz_________________?
A married couple owns a permanent policy which covers both of their lives and
pays the death benefit only upon the death of the first insured. Which policy is
that?
a)Second-to-Die
b)Family Income Policy
c)Joint Life Policy
d)Survivorship Life Policy -
Answer
c)Joint Life Policy
Joint life policies cover the lives of two insureds; rates are blended. Upon the
death of the first insured, the policy ends.
Quiz_________________?
The insured under a $100,000 life insurance policy with a triple indemnity rider
for accidental death was killed in a car accident. It was determined that the
accident was his fault. The triple indemnity rider in the policy specifies that the
death must not be contributed to by the insured in any manner. In this case, what
will the policy beneficiary receive?
3
, a)$0
b)$50,000 (50% of the policy value)
c)$100,000
d)$300,000 (triple the amount of policy value) -
Answer
c)$100,000
The triple indemnity accidental death rider obligates the company to pay three
times the face amount of the policy if the insured dies as a result of an accident.
The death must be accidental and not contributed to by any other factors and
must occur within 90 days of the accident. 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.
Quiz_________________?
In term policies, what happens to the premium throughout the term of the policy?
a) Premium gradually increases.
b) Premium gradually decreases.
c) Premium fluctuates.
d) Premium always remains level. -
Answer
d) Premium always remains level.
4
