NC LIFE INSURANCE EXAM TEST PAPER QUESTIONS AND
ANSWERS SURE A+
✔✔At what age does a "jumping juvenile" policy increase the benefit from $1,000 to
$5,000? - ✔✔21
✔✔Select the policy riders frequently found in life Insurance policies:
> Accidental death and dismemberment
> Cost of Living
> Waiver of premium
> All of the above - ✔✔All of the above
✔✔Which settlement option allows only the death benefit earnings to be paid to the
beneficiary? - ✔✔Interest option
✔✔The additional premium charged by an insurer for adding the accidental death
benefit to a whole life policy - ✔✔Does not affect the policy's cash value.
✔✔When applying for health insurance which of the following on the application is NOT
an acceptable question to ask?
> How do you think of your health these days?
> When were you born?
> Last time you saw your doctor?
> What is your age? - ✔✔How do you think of your health these days?
✔✔Which life insurance classification carries the highest premium? - ✔✔Substandard
✔✔A policy is issued to a 32 year old that has a face amount of $100,000. When the
insured reaches the age 55, the policy has built up $100,000 of cash value. Choose
from the selections below the type of policy this most likely describes: - ✔✔An
endowment at age 55 policy
✔✔From the following, select the type of life insurance which could be best used to
protect your customer's heirs from a mortgage obligation should your customer die: -
✔✔Decreasing term
✔✔Charles received a large inheritance from his uncle's estate. Because he can use
the income, he buys an annuity with the full amount of his inheritance that will begin
paying him monthly payments starting the following month. Charles has purchased a/an
_______ annuity. - ✔✔Single premium immediate
✔✔All of the following are benefits of insurance EXCEPT it:
, > reduces the uncertainty by many loss exposures.
> eliminates fraudulent losses.
> provides payment for the cost of covered losses.
> provides a source of investment funds. - ✔✔Eliminates fraudulent losses
✔✔The premium loan rider on a life insurance policy kicks in: - ✔✔At the end of the
grace period
✔✔For income tax purposes, premiums for personal life insurance are - ✔✔not
deductible.
✔✔A life insurance policy dividend is - ✔✔Legally defined as a return of excess
premium and not taxable.
✔✔The insurance term used for an insurer who has not complied with the requirements
to obtain a certificate of authority from the California insurance Commissioner is: -
✔✔Nonadmitted
✔✔According to the California Insurance Code, an insurance policy must be - ✔✔In
writing
✔✔Why is the delivery of a life insurance policy important? - ✔✔The free-look period
begins on the policy delivery date.
✔✔Equally sharing the death benefit among children can be done most effectively by: -
✔✔A class beneficiary designation.
✔✔A type of receipt stating that coverage begins on the date of the application as long
as the insurer approves the application is a: - ✔✔Conditional Receipt
✔✔Choose the correct statement: - ✔✔Life insurance creates an immediate estate.
✔✔Which of the following is a correct statement about life insurance policy types? -
✔✔The initial premium for term insurance is lower than the initial premium for whole life
insurance.
✔✔"A contract whereby an individual deposits funds with a life insurance company, the
individual defers taxes on the buildup of savings within the contract and the individual
can choose to take money out in several ways upon retirement." What does this
describe? - ✔✔An annuity
ANSWERS SURE A+
✔✔At what age does a "jumping juvenile" policy increase the benefit from $1,000 to
$5,000? - ✔✔21
✔✔Select the policy riders frequently found in life Insurance policies:
> Accidental death and dismemberment
> Cost of Living
> Waiver of premium
> All of the above - ✔✔All of the above
✔✔Which settlement option allows only the death benefit earnings to be paid to the
beneficiary? - ✔✔Interest option
✔✔The additional premium charged by an insurer for adding the accidental death
benefit to a whole life policy - ✔✔Does not affect the policy's cash value.
✔✔When applying for health insurance which of the following on the application is NOT
an acceptable question to ask?
> How do you think of your health these days?
> When were you born?
> Last time you saw your doctor?
> What is your age? - ✔✔How do you think of your health these days?
✔✔Which life insurance classification carries the highest premium? - ✔✔Substandard
✔✔A policy is issued to a 32 year old that has a face amount of $100,000. When the
insured reaches the age 55, the policy has built up $100,000 of cash value. Choose
from the selections below the type of policy this most likely describes: - ✔✔An
endowment at age 55 policy
✔✔From the following, select the type of life insurance which could be best used to
protect your customer's heirs from a mortgage obligation should your customer die: -
✔✔Decreasing term
✔✔Charles received a large inheritance from his uncle's estate. Because he can use
the income, he buys an annuity with the full amount of his inheritance that will begin
paying him monthly payments starting the following month. Charles has purchased a/an
_______ annuity. - ✔✔Single premium immediate
✔✔All of the following are benefits of insurance EXCEPT it:
, > reduces the uncertainty by many loss exposures.
> eliminates fraudulent losses.
> provides payment for the cost of covered losses.
> provides a source of investment funds. - ✔✔Eliminates fraudulent losses
✔✔The premium loan rider on a life insurance policy kicks in: - ✔✔At the end of the
grace period
✔✔For income tax purposes, premiums for personal life insurance are - ✔✔not
deductible.
✔✔A life insurance policy dividend is - ✔✔Legally defined as a return of excess
premium and not taxable.
✔✔The insurance term used for an insurer who has not complied with the requirements
to obtain a certificate of authority from the California insurance Commissioner is: -
✔✔Nonadmitted
✔✔According to the California Insurance Code, an insurance policy must be - ✔✔In
writing
✔✔Why is the delivery of a life insurance policy important? - ✔✔The free-look period
begins on the policy delivery date.
✔✔Equally sharing the death benefit among children can be done most effectively by: -
✔✔A class beneficiary designation.
✔✔A type of receipt stating that coverage begins on the date of the application as long
as the insurer approves the application is a: - ✔✔Conditional Receipt
✔✔Choose the correct statement: - ✔✔Life insurance creates an immediate estate.
✔✔Which of the following is a correct statement about life insurance policy types? -
✔✔The initial premium for term insurance is lower than the initial premium for whole life
insurance.
✔✔"A contract whereby an individual deposits funds with a life insurance company, the
individual defers taxes on the buildup of savings within the contract and the individual
can choose to take money out in several ways upon retirement." What does this
describe? - ✔✔An annuity
