LIFE INSURANCE LICENSE FINAL PAPER
COMPLETE QUESTIONS AND ACCURATE
SOLUTIONS STUDY 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
COMPLETE QUESTIONS AND ACCURATE
SOLUTIONS STUDY 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
