NC LIFE INSURANCE MAIN CORE EXAMS SET QUESTIONS
AND ANSWERS SURE A+
✔✔In order to ensure compliance with the law, the Insurance Commissioner may issue
- ✔✔orders
✔✔As a form of level premium permanent insurance, ordinary life insurance
accumulates a reserve that eventually - ✔✔equals the face amount of the policy
✔✔An intermediary is employed by an insurance agency affiliated with a lending
institution. As a condition for a loan, the institution requires placement of insurance on
the applicant's life with the affiliated agency. In this situation the institution's action is
referred to as: - ✔✔Twisting
✔✔If Term Life is renewable, the policyowner is purchasing the right to renew the policy
- ✔✔without showing proof of insurability
✔✔An important goal of the Interstate Insurance Product Regulation Compact is to -
✔✔Provide insurers a single point of filling for review and approval of certain policy
forms
✔✔Events or conditions the increase the likelihood of an insured's loss are referred to
as - ✔✔hazards
✔✔What type of insurance is the cheapest option to pay off a 30-year mortgage
balance? - ✔✔Decreasing term life
✔✔Under a Universal Life Insurance policy, a corridor represents the - ✔✔gap between
the total death benefit and the policy's cash value
✔✔How many days does a terminated employee have to covert to his group life
insurance policy to an individual policy? - ✔✔31
✔✔If an insurer determines the insured is totally disabled, the policyowner is relieved of
paying the policy premiums as long as the disability continues. The statement describes
the - ✔✔waiver of premium rider
✔✔The insurance security fund protects insureds from an insurer's - ✔✔liquidation
✔✔Which rider would allow additional insurance to be purchased at specified dates of
events, without additional underwriting? - ✔✔Guaranteed insurability
, ✔✔Which of the following is an element of insurable risks? - ✔✔the loss must be
calculable
✔✔Upon the death of an insured individual, what does life insurance guarantee to
deliver to the beneficiary? - ✔✔a specified sum of money
✔✔Specific statements made on an application that the insured guarantees to be TRUE
are - ✔✔warranties
✔✔Which of the following statements is CORRECT about an insurance company that
discovers collusion between a policyholder and an intermediary? - ✔✔the company is
relieved of its obligation to pay a claim
✔✔Which of the following is NOT a requirement of a qualified plan? - ✔✔It must
discriminate as to who can participate
✔✔An immediate annuity begins making payments after the - ✔✔first premium has
been paid
✔✔If an annuitant is making premium payments on a periodic basis, which type of
annuity have they purchased? - ✔✔Deferred
✔✔The accumulated cash value of a whole life insurance policy becomes the -
✔✔amount used to purchase paid up additions to the insured's policy
✔✔The settlement option that pays a specified amount to an annuitant, but pays no
residual value to a beneficiary is known as - ✔✔Life income
✔✔What kind of retirement plan can a 1,500 employee for-profit corporation establish? -
✔✔401(k)
✔✔Which of the following authorities is required to examine the business records of
domestic insurance companies and licensed rate-services organizations in Wisconsin? -
✔✔The Office of commissioner of insurance
✔✔Which of the following dividend options will increase the death benefit? -
✔✔Guaranteed insurability
✔✔Under a executive bonus plan, premiums paid by the employer are - ✔✔only tax
deductible when the bonus is an insurance plan
✔✔An intermediary should determine whether replacement is involved in a transaction
no later than when the - ✔✔Insurance company issues the policy
AND ANSWERS SURE A+
✔✔In order to ensure compliance with the law, the Insurance Commissioner may issue
- ✔✔orders
✔✔As a form of level premium permanent insurance, ordinary life insurance
accumulates a reserve that eventually - ✔✔equals the face amount of the policy
✔✔An intermediary is employed by an insurance agency affiliated with a lending
institution. As a condition for a loan, the institution requires placement of insurance on
the applicant's life with the affiliated agency. In this situation the institution's action is
referred to as: - ✔✔Twisting
✔✔If Term Life is renewable, the policyowner is purchasing the right to renew the policy
- ✔✔without showing proof of insurability
✔✔An important goal of the Interstate Insurance Product Regulation Compact is to -
✔✔Provide insurers a single point of filling for review and approval of certain policy
forms
✔✔Events or conditions the increase the likelihood of an insured's loss are referred to
as - ✔✔hazards
✔✔What type of insurance is the cheapest option to pay off a 30-year mortgage
balance? - ✔✔Decreasing term life
✔✔Under a Universal Life Insurance policy, a corridor represents the - ✔✔gap between
the total death benefit and the policy's cash value
✔✔How many days does a terminated employee have to covert to his group life
insurance policy to an individual policy? - ✔✔31
✔✔If an insurer determines the insured is totally disabled, the policyowner is relieved of
paying the policy premiums as long as the disability continues. The statement describes
the - ✔✔waiver of premium rider
✔✔The insurance security fund protects insureds from an insurer's - ✔✔liquidation
✔✔Which rider would allow additional insurance to be purchased at specified dates of
events, without additional underwriting? - ✔✔Guaranteed insurability
, ✔✔Which of the following is an element of insurable risks? - ✔✔the loss must be
calculable
✔✔Upon the death of an insured individual, what does life insurance guarantee to
deliver to the beneficiary? - ✔✔a specified sum of money
✔✔Specific statements made on an application that the insured guarantees to be TRUE
are - ✔✔warranties
✔✔Which of the following statements is CORRECT about an insurance company that
discovers collusion between a policyholder and an intermediary? - ✔✔the company is
relieved of its obligation to pay a claim
✔✔Which of the following is NOT a requirement of a qualified plan? - ✔✔It must
discriminate as to who can participate
✔✔An immediate annuity begins making payments after the - ✔✔first premium has
been paid
✔✔If an annuitant is making premium payments on a periodic basis, which type of
annuity have they purchased? - ✔✔Deferred
✔✔The accumulated cash value of a whole life insurance policy becomes the -
✔✔amount used to purchase paid up additions to the insured's policy
✔✔The settlement option that pays a specified amount to an annuitant, but pays no
residual value to a beneficiary is known as - ✔✔Life income
✔✔What kind of retirement plan can a 1,500 employee for-profit corporation establish? -
✔✔401(k)
✔✔Which of the following authorities is required to examine the business records of
domestic insurance companies and licensed rate-services organizations in Wisconsin? -
✔✔The Office of commissioner of insurance
✔✔Which of the following dividend options will increase the death benefit? -
✔✔Guaranteed insurability
✔✔Under a executive bonus plan, premiums paid by the employer are - ✔✔only tax
deductible when the bonus is an insurance plan
✔✔An intermediary should determine whether replacement is involved in a transaction
no later than when the - ✔✔Insurance company issues the policy
