1|Page
PEARSON VUE NC LIFE INSURANCE PRACTICE
EXAM UPDATED 2025 2026 WITH ALL NEW
QUESTIONS AND EXACTLY RIGHT ANSWERS |
A+ QUALITY GUARANTEE
1
Q: A life insurance policy that combines Term insurance and an interest-bearing
account is BEST classified as which of the following types of policies? -
ANSWER: B. Universal Life
2
Q: Which of the following policy provisions states that the application is part of
the policy? - ANSWER: A. Entire contract
3
Q: Which of the following annuities BEST suits the needs of a 35-year-old factory
worker concerned about inflation who wants to establish a retirement plan? -
ANSWER: D. A Flexible Premium Variable Annuity
4
Q: An employer can deduct premium payments as an ordinary business expense
for which of the following life coverages? - ANSWER: B. Group
5
Q: A Renewable Term policy may be renewed only if which of the following is
correct? - ANSWER: B. The insured requests renewal at the end of the policy
term.
6
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Q: A prospect is critical of the low interest assumption used in the Whole Life
product proposed for purchase. Which of the following products could be used to
resolve the prospect's concerns? - ANSWER: B. Interest-Sensitive Whole Life
7
Q: Under the Social Security Retirement Benefits, all of the following factors will
influence how much a retiring individual will receive as a monthly income benefit
EXCEPT the individual's: - ANSWER: D. Gender
8
Q: All of the following policies may be examples of third-party ownership
EXCEPT: - ANSWER: A. Modified Life
9
Q: Two business partners own life insurance on each other. If one partner dies,
which of the following contracts will allow the other partner to buy 100 percent of
the business interest? - ANSWER: A. Buy and Sell Agreement
10
Q: A contract that has as its basic function the systematic liquidation of
accumulated assets through periodic payments is called an: - ANSWER: D.
Annuity
11
Q: Which of the following terms refers to the transfer of some or all of the
ownership rights of a life insurance policy from one individual to another? -
ANSWER: D. Assignment
12
PEARSON VUE NC LIFE INSURANCE PRACTICE
EXAM UPDATED 2025 2026 WITH ALL NEW
QUESTIONS AND EXACTLY RIGHT ANSWERS |
A+ QUALITY GUARANTEE
1
Q: A life insurance policy that combines Term insurance and an interest-bearing
account is BEST classified as which of the following types of policies? -
ANSWER: B. Universal Life
2
Q: Which of the following policy provisions states that the application is part of
the policy? - ANSWER: A. Entire contract
3
Q: Which of the following annuities BEST suits the needs of a 35-year-old factory
worker concerned about inflation who wants to establish a retirement plan? -
ANSWER: D. A Flexible Premium Variable Annuity
4
Q: An employer can deduct premium payments as an ordinary business expense
for which of the following life coverages? - ANSWER: B. Group
5
Q: A Renewable Term policy may be renewed only if which of the following is
correct? - ANSWER: B. The insured requests renewal at the end of the policy
term.
6
, 2|Page
Q: A prospect is critical of the low interest assumption used in the Whole Life
product proposed for purchase. Which of the following products could be used to
resolve the prospect's concerns? - ANSWER: B. Interest-Sensitive Whole Life
7
Q: Under the Social Security Retirement Benefits, all of the following factors will
influence how much a retiring individual will receive as a monthly income benefit
EXCEPT the individual's: - ANSWER: D. Gender
8
Q: All of the following policies may be examples of third-party ownership
EXCEPT: - ANSWER: A. Modified Life
9
Q: Two business partners own life insurance on each other. If one partner dies,
which of the following contracts will allow the other partner to buy 100 percent of
the business interest? - ANSWER: A. Buy and Sell Agreement
10
Q: A contract that has as its basic function the systematic liquidation of
accumulated assets through periodic payments is called an: - ANSWER: D.
Annuity
11
Q: Which of the following terms refers to the transfer of some or all of the
ownership rights of a life insurance policy from one individual to another? -
ANSWER: D. Assignment
12
