NC Life Insurance Study Test Questions and
Answers Graded A+
The Family Plan Insurance Policy usually consists of:
whole life insurance on the family head and term insurance on other family members
A Jumping Juvenile Policy:
automatically increases the face amount at a given age
Excess interest credited under an index-linked method would pay interest in relation to:
an external economic indicator
Under a straight life annuity, an income is payable by the company:
only so long as the annuitant is alive
The premium for Interest Sensitive Whole Life is:
fixed with the policy lapsing if not paid
The purpose of the Life, Accident, and Health Guaranty Association is to:
provide guarantees of payment to those individuals whose insurer is insolvent(bankrupt)
Maximum benefit payment from the Life, Accident, and Health Guaranty Association is:
$300,000
Payment of death proceeds must be paid within a specified number of days after receiving
satisfactory proof of loss. What is this requirement?
30 days
The grace period can be no fewer than:
31 days
The policyowner of a Universal Life Policy withdrawals $60,000 of the cash value to purchase a car. If
the cumulative premiums paid to date total $40,000, how much of the cash withdrawal is taxable as
ordinary income?
$20,000
A Universal Life policy resembles a yearly renewable term policy in that the:
cost of the portion of the death benefit for which the company is "at risk" increases annually with the
insured's age
An annuity whose benefits start within 1 year of purchase is called:
Immediate Annuity
Answers Graded A+
The Family Plan Insurance Policy usually consists of:
whole life insurance on the family head and term insurance on other family members
A Jumping Juvenile Policy:
automatically increases the face amount at a given age
Excess interest credited under an index-linked method would pay interest in relation to:
an external economic indicator
Under a straight life annuity, an income is payable by the company:
only so long as the annuitant is alive
The premium for Interest Sensitive Whole Life is:
fixed with the policy lapsing if not paid
The purpose of the Life, Accident, and Health Guaranty Association is to:
provide guarantees of payment to those individuals whose insurer is insolvent(bankrupt)
Maximum benefit payment from the Life, Accident, and Health Guaranty Association is:
$300,000
Payment of death proceeds must be paid within a specified number of days after receiving
satisfactory proof of loss. What is this requirement?
30 days
The grace period can be no fewer than:
31 days
The policyowner of a Universal Life Policy withdrawals $60,000 of the cash value to purchase a car. If
the cumulative premiums paid to date total $40,000, how much of the cash withdrawal is taxable as
ordinary income?
$20,000
A Universal Life policy resembles a yearly renewable term policy in that the:
cost of the portion of the death benefit for which the company is "at risk" increases annually with the
insured's age
An annuity whose benefits start within 1 year of purchase is called:
Immediate Annuity
