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CA PSI SITE LIFE ACCIDENT AND HEALTH OR SICKNESS
EXAM ||ALREADY GRADED A+|| WITH CORRECT AND
VERIFIED ANSWERS
What must be signed by both the agent and applicant when an existing life
insurance policy is being reissued with a reduction in cash value? -
ANSWER -Notice Regarding Replacement
When an existing life insurance policy is terminated so that a new life
insurance policy can be purchased, this transaction is referred to as -
ANSWER -Replacement
Any vacancy of the Commissioner of Insurance position must be filled by
a(n) - ANSWER -Governor Appointment
If a blank insurance contract application is signed by an agent, the agent -
ANSWER -is guilty of a misdemeanor
In North Carolina, an agent obtains his/her license from the - ANSWER -
Commissioner of Insurance
In the event of a replacement, what MUST be given to the insurance
applicant at the time of application? - ANSWER -Notice Regarding
Replacement
North Carolina insurance law specifically allows the Commissioner of
Insurance to issue a temporary license to which of the following
individuals? - ANSWER -A surviving spouse of a deceased agent
The act of replacing an existing insurance policy with another is called -
ANSWER -Replacement
What is one of the duties of the Commissioner of Insurance? - ANSWER -
Administering Insurance Laws
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An agent completes an application with a client for a $50,000 Life
Insurance policy. At what point is the LATEST a Policy Summary and
Buyers Guide must be given to the applicant? - ANSWER -Upon Policy
Delivery
Which of the following is a requirement for obtaining a Resident agent
license? - ANSWER -Submit a valid email address to the commissioner
Which of the following is NOT regulated by the Insurance Information and
Privacy Protection Act? - ANSWER -Insurance Regulators
Which of the following entities does the Commissioner of Insurance NOT
have the authority to examine its business records? - ANSWER -
Policyholders
In North Carolina, life insurance policies have a contestability period of: -
ANSWER -2 Years
Which of the following is NOT considered rebating? - ANSWER -Sharing
commissions with an agent licensed in the same line of business
A Resident agent who moves out of the State of North Carolina has ____
business days to notify the Commissioner of Insurance of the address
change. - ANSWER -10
Who does an insurance broker in North Carolina represent? - ANSWER -
Insured
Why would the Commissioner of Insurance examine the records of an
insurance company? - ANSWER -To determine the solvency of the
company
An agent will be personally liable for claims originating from any insurance
policies - ANSWER -sold by the agent for companies NOT authorized to
conduct business in North Carolina
In North Carolina, life insurance policies have a contestability period of -
ANSWER -2 years
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If an agent is found to be incompetent, untrustworthy, or financially
irresponsible, the Commissioner may - ANSWER -suspend, revoke, or
refuse to renew the agent's license
A life policy loan in North Carolina cannot charge a fixed rate of interest
higher than - ANSWER -8%
ABC Insurance Company fails to pay death proceeds after satisfactory
proof of loss was submitted. ABC must then begin paying interest on the
death proceeds after ___ days of receiving proof of loss. - ANSWER -30
Credit life insurance is - ANSWER -issued on a debtor to cover outstanding
balances on installment loans
In North Carolina, tontine policies are: - ANSWER -prohibited
A Key Employee policy is taken out by Company X on its vice president.
Ten years later, this employee leaves Company X and begins working for
Company Y. If this individual were to die and the policy is still in force and
unchanged, where would the death proceeds be directed? - ANSWER -
company x
Which statement regarding a Key Employee Life policy is NOT true? -
ANSWER -The beneficiary is named by the key employee
Two partners own equal shares in a business worth a total of $1,000,000. If
they both commit to the purchase of a life insurance policy that will fund a
Buy-Sell Agreement, which of the following is TRUE? - ANSWER -Each
owns 500,000 of each others
What is considered a valid reason for small businesses to insure the lives
of its major shareholders? - ANSWER -Fund a Buy-Sell agreement
When does a life insurance contract become effective if the initial premium
is not collected during the application process? - ANSWER -When
producer delivers policy and collects initial premium
Consumer reports requested by an underwriter during the application
process of a life insurance policy can be used to determine: - ANSWER -
probability of making timely premium payments
CA PSI SITE LIFE ACCIDENT AND HEALTH OR SICKNESS
EXAM ||ALREADY GRADED A+|| WITH CORRECT AND
VERIFIED ANSWERS
What must be signed by both the agent and applicant when an existing life
insurance policy is being reissued with a reduction in cash value? -
ANSWER -Notice Regarding Replacement
When an existing life insurance policy is terminated so that a new life
insurance policy can be purchased, this transaction is referred to as -
ANSWER -Replacement
Any vacancy of the Commissioner of Insurance position must be filled by
a(n) - ANSWER -Governor Appointment
If a blank insurance contract application is signed by an agent, the agent -
ANSWER -is guilty of a misdemeanor
In North Carolina, an agent obtains his/her license from the - ANSWER -
Commissioner of Insurance
In the event of a replacement, what MUST be given to the insurance
applicant at the time of application? - ANSWER -Notice Regarding
Replacement
North Carolina insurance law specifically allows the Commissioner of
Insurance to issue a temporary license to which of the following
individuals? - ANSWER -A surviving spouse of a deceased agent
The act of replacing an existing insurance policy with another is called -
ANSWER -Replacement
What is one of the duties of the Commissioner of Insurance? - ANSWER -
Administering Insurance Laws
,2|Page
An agent completes an application with a client for a $50,000 Life
Insurance policy. At what point is the LATEST a Policy Summary and
Buyers Guide must be given to the applicant? - ANSWER -Upon Policy
Delivery
Which of the following is a requirement for obtaining a Resident agent
license? - ANSWER -Submit a valid email address to the commissioner
Which of the following is NOT regulated by the Insurance Information and
Privacy Protection Act? - ANSWER -Insurance Regulators
Which of the following entities does the Commissioner of Insurance NOT
have the authority to examine its business records? - ANSWER -
Policyholders
In North Carolina, life insurance policies have a contestability period of: -
ANSWER -2 Years
Which of the following is NOT considered rebating? - ANSWER -Sharing
commissions with an agent licensed in the same line of business
A Resident agent who moves out of the State of North Carolina has ____
business days to notify the Commissioner of Insurance of the address
change. - ANSWER -10
Who does an insurance broker in North Carolina represent? - ANSWER -
Insured
Why would the Commissioner of Insurance examine the records of an
insurance company? - ANSWER -To determine the solvency of the
company
An agent will be personally liable for claims originating from any insurance
policies - ANSWER -sold by the agent for companies NOT authorized to
conduct business in North Carolina
In North Carolina, life insurance policies have a contestability period of -
ANSWER -2 years
, 3|Page
If an agent is found to be incompetent, untrustworthy, or financially
irresponsible, the Commissioner may - ANSWER -suspend, revoke, or
refuse to renew the agent's license
A life policy loan in North Carolina cannot charge a fixed rate of interest
higher than - ANSWER -8%
ABC Insurance Company fails to pay death proceeds after satisfactory
proof of loss was submitted. ABC must then begin paying interest on the
death proceeds after ___ days of receiving proof of loss. - ANSWER -30
Credit life insurance is - ANSWER -issued on a debtor to cover outstanding
balances on installment loans
In North Carolina, tontine policies are: - ANSWER -prohibited
A Key Employee policy is taken out by Company X on its vice president.
Ten years later, this employee leaves Company X and begins working for
Company Y. If this individual were to die and the policy is still in force and
unchanged, where would the death proceeds be directed? - ANSWER -
company x
Which statement regarding a Key Employee Life policy is NOT true? -
ANSWER -The beneficiary is named by the key employee
Two partners own equal shares in a business worth a total of $1,000,000. If
they both commit to the purchase of a life insurance policy that will fund a
Buy-Sell Agreement, which of the following is TRUE? - ANSWER -Each
owns 500,000 of each others
What is considered a valid reason for small businesses to insure the lives
of its major shareholders? - ANSWER -Fund a Buy-Sell agreement
When does a life insurance contract become effective if the initial premium
is not collected during the application process? - ANSWER -When
producer delivers policy and collects initial premium
Consumer reports requested by an underwriter during the application
process of a life insurance policy can be used to determine: - ANSWER -
probability of making timely premium payments
