NC Life Exam Simulation Questions and Answers Already PASSED !!!
0 view 0 purchase
Course
NC Life insurance
Institution
NC Life Insurance
NC Life Exam Simulation Questions and Answers Already PASSED !!
Which of the following actions require a policyowner to provide proof of insurability in an Adjustable Life policy?
ANSWER: increase face amount
2. If the Commissioner of insurance finds that a licensed person has used fraudulent,...
nc life exam simulation questions and answers alre
Written for
NC Life insurance
All documents for this subject (492)
Seller
Follow
katoinyambi96
Reviews received
Content preview
NC Life Exam Simulation Questions and Answers Already
PASSED !!
Which of the following actions require a policyowner to provide proof of
insurability in an Adjustable Life policy?
ANSWER: increase face amount
2. 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
ANSWER: suspend, revoke, or refuse to renew the agent's license
3. A Whole Life Insurance Policy endows when the:
ANSWER: Cash value equals the death benefit
4. A provision in a life insurance policy that pays the policyowner an amount that
does not surpass the guaranteed cash value is called the:
ANSWER: Policy Loan provision
5. The Life and Health Insurance Guaranty Association becomes involved in an
insurance company's affairs when the company
ANSWER: becomes insolvent
6. If a contract of adhesion contains complicated language, to whom would the
interpretation be in favor of?
ANSWER: Insured
7. 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 sixth 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:
ANSWER: Adjustable Life
8. Which parts of a life insurance policy are guaranteed to be true?
ANSWER: Warranty
9. Q applied for life insurance and submitted the initial premium on January 1.
The policy was issued February 1, but it was not delivered by the agent until
February 7. Q is dissatisfied and returns the policy February 13. How will the
insurer handle this situation?
ANSWER: Policy was returned within the free-look period, premium will be fully
refunded
10. Which of these types of policies may NOT have the Automatic Premium Loan
provision attached to it?
ANSWER: Decreasing Term
11. Which of the following consists of an offer, acceptance, and consideration?
ANSWER: Contract
12. According to North Carolina's rules on disclosure, a life insurance applicant is
expected to be provided with
ANSWER: a Buyer's Guide and Policy Summary
13. Which of the following statements about noncontributory employee group life
insurance is FALSE?
, ANSWER: A minimum number of employees is required to participate
14. The automatic premium loan provision is designed to:
ANSWER: avoid a policy lapse
15. The amount received for a life insurance policy in a viatical settlement is
ANSWER: Less than the death benefit
16. If after satisfactory proof of loss, an insurer fails or refuses to pay death
proceeds, the insurer must pay interest on the proceeds after how many days?
ANSWER: 30
17. When a life insurance policy exceeds certain IRS table values, the result
would create which of the following?
ANSWER: Modified Endowment Contract (MEC)
18. A written agreement to provide a Life Insurance Policy holder immediate cash
in exchange for the sale and transfer of a Life Insurance Policy is a
ANSWER: Viatical Settlement
19. The annuity that represents the largest possible monthly payment to an
individual annuitant is a(n):
ANSWER: Straight Life annuity
20. The fund that assures policyholders payment of death benefits on Life
Policies, if the company is insolvent at the time of the claim, is called the
ANSWER: Life and Health Insurance Guaranty Association
21. The most important factor to consider when determining whether to convert
term insurance at the insured's attained age or the insured's original age is:
ANSWER: the cost
22. Which of these is NOT considered to be an element of an insurance contract?
ANSWER: negotiating
23. J is 35-years old and looking to purchase a whole life insurance policy. Which
of the following types of policies will provide the most rapid growth of cash
value?
ANSWER: 20-pay Life
24. A trustee-to-trustee transfer of rollover funds in a qualified plan allows a
participant to avoid:
ANSWER: mandatory income tax withholding on the transfer amount
25. A policyowner is allowed to pay premiums more than once a year under which
provision?
ANSWER: Mode of Premium
26. Which type of life policy contains a monthly mortality charge as well as self-
directed investment choices?
ANSWER: Variable Universal Life
27. Which policy requires an agent to register with the National Association of
Securities Dealers (NASD) before selling?
ANSWER: Variable Life
28. What does a 401(k) plan generally provide its participants?
ANSWER: Salary-deferral contributions
29. Which of the following statements regarding a Tax Sheltered Annuity (TSA) is
INCORRECT?
ANSWER: The income from the TSA is received income tax-free
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller katoinyambi96. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.48. You're not tied to anything after your purchase.
