Page | 1
NC Life Insurance Exam Prep
Questions And Answers 2026
An agent who sells an individual life insurance policy in NC MUST
deliver to the policyowner
- ............ SOLUTION✔✔✔..........A policy summary and
buyer's guide
All of the following actions are considered rebating EXCEPT
- ............ SOLUTION✔✔✔..........Sharing commissions with
other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy
provide? - ............ SOLUTION✔✔✔..........Premiums are
waived if payor becomes disabled
An agent who signs a blank contract application or policy of
insurance - ............ SOLUTION✔✔✔..........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? - ............
SOLUTION✔✔✔..........18
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In a life insurance policy, which feature states that the policy will
not cover certain risks? - ............
SOLUTION✔✔✔..........Exclusion
Whole Life insurance are contractually guaranteed to provide
each of the following EXCEPT? - ............
SOLUTION✔✔✔..........Partial withdrawal features beyond a
surrender charge period
A term life insurance policy matures - ............
SOLUTION✔✔✔..........Upon the insured's death during the
term of the policy
Which of these provisions require proof of insurability after a
policy has lapsed? - ............
SOLUTION✔✔✔..........Reinstatement
How does a typical Variable Life Policy Investment account grow?
- ............ SOLUTION✔✔✔..........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 -
............ SOLUTION✔✔✔..........Defamation
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All of the following are considered characteristics describing the
nature of an insurance contract EXCEPT - ............
SOLUTION✔✔✔..........Bilateral
A 15-year mortgage is best protected by what kind of life policy? -
............ SOLUTION✔✔✔..........15-year decreasing term
Companies in NC may transact solicitations for insurance ONLY
through - ............ SOLUTION✔✔✔..........Licensed agents
Which of these retirement plans can be started by an employee,
even if another plan is in existence - ............
SOLUTION✔✔✔..........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 - ............ SOLUTION✔✔✔..........Variable life
If an annuity is terminated prior to the beginning of the income
payment period, the contract owner receives - ............
SOLUTION✔✔✔..........The contract surrender value at that
time
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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 - ............ SOLUTION✔✔✔..........Policy Loan Provision
When does a Guaranteed Insurability Rider allow the insured to
buy additional coverage? - ............ SOLUTION✔✔✔..........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? - ............ SOLUTION✔✔✔..........Income that cannot
be outlived by the owner
A level premium indicates - ............
SOLUTION✔✔✔..........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? - ............ SOLUTION✔✔✔..........Daughter
Which of the following statements is correct about the period in
which a Term Policy can be converted? - ............
SOLUTION✔✔✔..........It can be changed by the insured
NC Life Insurance Exam Prep
Questions And Answers 2026
An agent who sells an individual life insurance policy in NC MUST
deliver to the policyowner
- ............ SOLUTION✔✔✔..........A policy summary and
buyer's guide
All of the following actions are considered rebating EXCEPT
- ............ SOLUTION✔✔✔..........Sharing commissions with
other licensed and appointed agents
What benefit does the Payor Clause on a Juvenile Life Policy
provide? - ............ SOLUTION✔✔✔..........Premiums are
waived if payor becomes disabled
An agent who signs a blank contract application or policy of
insurance - ............ SOLUTION✔✔✔..........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? - ............
SOLUTION✔✔✔..........18
, Page | 2
In a life insurance policy, which feature states that the policy will
not cover certain risks? - ............
SOLUTION✔✔✔..........Exclusion
Whole Life insurance are contractually guaranteed to provide
each of the following EXCEPT? - ............
SOLUTION✔✔✔..........Partial withdrawal features beyond a
surrender charge period
A term life insurance policy matures - ............
SOLUTION✔✔✔..........Upon the insured's death during the
term of the policy
Which of these provisions require proof of insurability after a
policy has lapsed? - ............
SOLUTION✔✔✔..........Reinstatement
How does a typical Variable Life Policy Investment account grow?
- ............ SOLUTION✔✔✔..........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 -
............ SOLUTION✔✔✔..........Defamation
, Page | 3
All of the following are considered characteristics describing the
nature of an insurance contract EXCEPT - ............
SOLUTION✔✔✔..........Bilateral
A 15-year mortgage is best protected by what kind of life policy? -
............ SOLUTION✔✔✔..........15-year decreasing term
Companies in NC may transact solicitations for insurance ONLY
through - ............ SOLUTION✔✔✔..........Licensed agents
Which of these retirement plans can be started by an employee,
even if another plan is in existence - ............
SOLUTION✔✔✔..........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 - ............ SOLUTION✔✔✔..........Variable life
If an annuity is terminated prior to the beginning of the income
payment period, the contract owner receives - ............
SOLUTION✔✔✔..........The contract surrender value at that
time
, Page | 4
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 - ............ SOLUTION✔✔✔..........Policy Loan Provision
When does a Guaranteed Insurability Rider allow the insured to
buy additional coverage? - ............ SOLUTION✔✔✔..........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? - ............ SOLUTION✔✔✔..........Income that cannot
be outlived by the owner
A level premium indicates - ............
SOLUTION✔✔✔..........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? - ............ SOLUTION✔✔✔..........Daughter
Which of the following statements is correct about the period in
which a Term Policy can be converted? - ............
SOLUTION✔✔✔..........It can be changed by the insured
