NC Life Insurance Exam Prep Questions and Answer

NC Life Insurance Exam Prep Questions and Answer An agent who sells an individual life insurance policy in NC MUST deliver to the policyowner - Answer- A policy summary and buyer's guide All of the following actions are considered rebating EXCEPT - Answer- Sharing commissions with other licensed and appointed agents What benefit does the Payor Clause on a Juvenile Life Policy provide? - Answer- Premiums are waived if payor becomes disabled An agent who signs a blank contract application or policy of insurance - Answer- Is guilty of a misdemeanor A person is required to be AT LEAST how old before he or she is licensed as an agent in NC? - Answer- 18 In a life insurance policy, which feature states that the policy will not cover certain risks? - Answer- Exclusion Whole Life insurance are contractually guaranteed to provide each of the following EXCEPT? - Answer- Partial withdrawal features beyond a surrender charge period A term life insurance policy matures - Answer- Upon the insured's death during the term of the policy Which of these provisions require proof of insurability after a policy has lapsed? - Answer- Reinstatement How does a typical Variable Life Policy Investment account grow? - Answer- Through mutual funds, stocks, and bonds Circulation of any oral or written statement or any pamphlet, circular, article or literature that is false or maliciously critical of or derogatory to the financial condition of an insurer is known as - Answer- Defamation All of the following are considered characteristics describing the nature of an insurance contract EXCEPT - Answer- Bilateral A 15-year mortgage is best protected by what kind of life policy? - Answer- 15-year decreasing term Companies in NC may transact solicitations for insurance ONLY through - Answer- Licensed agents Which of these retirement plans can be started by an employee, even if another plan is in existence - Answer- Individual Retirement Account (IRA) A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as - Answer- Variable life If an annuity is terminated prior to the beginning of the income payment period, the contract owner receives - Answer- The contract surrender value at that time A provision in a life insurance policy that pays the policy owner an amount that doesn't surpass the guaranteed cash value is called the - Answer- Policy Loan Provision When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? - Answer- At future dates specified in the contract with no evidence of insurability required T, age 70, withdrawals cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide? - Answer- Income that cannot be outlived by the owner A level premium indicates - Answer- The premium is fixed for the entire duration of the contract K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? - Answer- Daughter Which of the following statements is correct about the period in which a Term Policy can be converted? - Answer- It can be changed by the insured What group term life feature permits an individual to depart from the group and continue to be converted without providing evidence of insurability? - Answer- Conversion An insured covered by life insurance has just died. What will happen if the primary beneficiary had already died before the insured and contingent beneficiary? - Answer- Proceed will go to the contingent beneficiary S buys a $10,000 Whole Life Policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy? - Answer- Return of Premium rider One of the stated purposes of the Life and Health Insurance Guaranty Association is to - Answer- Assist in the prevention of insurer insolvencies The following acts are examples of unfair methods of competition and deceptive practices in the business of insurance EXCEPT the use for - Answer- Comparisons showing that a policy has higher benefits Which of the following policies combines investment choices with a form of Term coverage? - Answer- Variable universal life Under a renewable term policy, - Answer- The renewal premium is calculated on the basis of the insured's attained age Additional coverage can be added to a Whole Life policy by adding a(n) - Answer- Decreasing term rider The rules and regulations of the Life and Health Insurance Guaranty Association in NC apply to - Answer- Life and Health policies insured by companies authorized in NC What type of life policy covers 2 people and pays upon the death of the last insured? - Answer- Survivorship K works for XYZ clothing store from September through December each year. K works 4 hours a week for this period of time. The employer's Group Policy would consider K - Answer- Not eligible for the insurance because as a seasonal employee K doesn't meet the definition of "employee" under NC law A written agreement to provide a Life Insurance Policyholder immediate cash in exchange for the sale and transfer of a Life Insurance Policy is a - Answer- Viatical Settlement When an employee is terminated, which statement about a group term life conversion is true? - Answer- Policy proceeds will be paid if the employee dies duri