NC LIFE INSURANCE EXAM PREP

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NC LIFE INSURANCE EXAM PREP

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: In a life insurance policy, which feature states that the policy will not cover certain risks?

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Exclusion Question 2: The rules and regulations of the Life and Health Insurance Guaranty Association in NC apply to

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Life and Health policies insured by companies authorized in NC Question 3: An engineering firm that would suffer financially from the death of a project manager should purchase a

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Key person life policy Question 4: Which of these statements about a Guaranteed Insurability Option rider is NOT true?

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Evidence of insurability is required when the option is exercised

Question 5: Which of the following consists of an offer, acceptance, and consideration?

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Contract Question 6: Life insurance that covers an insured's Whole Life with level premiums paid over a limited time is called

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Limited pay life

Question 7: A 15-year mortgage is best protected by what kind of life policy?

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15-year decreasing term Question 8: M purchases a $70,000 Life Insurance Policy with premium payments of $550 a year for the first 5 years. At the beginning of the 6th year, the premium will increase to $800 per year but will remain level thereafter. The face amount will remain at $70,000 throughout the life of the policy. The type of policy that M has purchased is

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Modified Premium Life; Modified Whole Life policies are distinguished by premiums that are lower than typical whole life premiums during the first few years usually five and higher thereafter.Question 9: Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policy owner becomes disabled?

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Payor clause

Question 10: Under a renewable term policy,

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The renewal premium is calculated on the basis of the insured's attained age Question 11: Which of the following policies combines investment choices with a form of Term coverage?

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Variable universal life

Question 12: If the Commissioner of Insurance finds that a licensed person has used fraudulent, coercive, or dishonest practices or has proved to be incompetent, untrustworthy, or financially irresponsible the law allows the Commissioner to

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Suspend, revoke, or refuse to renew the agent's license Question 13: What group term life feature permits an individual to depart from the group and continue to be converted without providing evidence of insurability?

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Conversion

Question 14: Which provision is NOT a requirement in a group policy?

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Accidental Question 15: P is a 40-year woman and would like to purchase an annuity that will provide a lifetime income stream beginning at 60-years old. Which of the following did she NOT buy?

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An immediate annuity Question 16: Whose life is covered on a life insurance policy that contains a payor benefit clause?

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Child; A payor benefit clause is generally added to a life policy that insures the life of a juvenile. It provides continuance of insurance coverage in the event of the death or total disability of the individual responsible for the payment of premiums.

Question 17: A term life insurance policy matures

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Upon the insured's death during the term of the policy

Question 18: Variable Whole Life insurance can be described as

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Both an insurance and securities product

Question 19: A vacancy that occurs during the NC Commissioner of Insurance's term of office MUST be filled by the

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Governor Question 20: When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?

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At future dates specified in the contract with no evidence of insurability required Question 21: Additional coverage can be added to a Whole Life policy by adding a(n)

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Decreasing term rider Question 22: Insurance contracts are known as_______ because certain future conditions or acts must be occur before any claims can be paid.

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Conditional Question 23: What type of annuity has a cash value that is based upon the performance of it's underlying investment funds?

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Variable Question 24: 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

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Defamation Question 25: The fund that assures policyholders payment of death benefits on Life Policies, if the company is insolvent at the same time of the claim, is called the

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Life and Health Insurance Guaranty Association