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NC Life Insurance Practice Exam Questions and Answers Already Passed
Question 1: All of the following are included within the
Insurance Commissioner's duties EXCEPT
a) Conducting investigation of all domestic insurers.
b) Reviewing the insurers' annual reports.
c) Writing North Carolina insurance laws.
d) Reporting any violations of insurance laws to the Attorney
General. Writing insurance law is not the Insurance Commissioner's responsibility, but enforcing the law is.
CORRECT ANSWER: c) Writing North Carolina insurance
laws.
Question 2: Which of the following insurance providers must be
nonprofit and sell insurance only to its members?
a) Reciprocal
b) Fraternal
c) Service
d) Mutual
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CORRECT ANSWER: b) Fraternal
Question 3: A married couple owns a permanent policy which
covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?
a) Second-to-Die
b) Family Income Policy
c) Joint Life Policy
d) Survivorship Life Policy
CORRECT ANSWER: c) Joint Life Policy
Question 4: The insured under a $100,000 life insurance policy
with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault.The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?
- $0
- $50,000 (50% of the policy value)
- $100,000
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- $300,000 (triple the amount of policy value)
CORRECT ANSWER: c) $100,000
Question 5: In term policies, what happens to the premium
throughout the term of the policy?
a) Premium gradually increases.
b) Premium gradually decreases.
c) Premium fluctuates.
d) Premium always remains level.
CORRECT ANSWER: d) Premium always remains level.
Question 6: An insurer neglects to pay a legitimate claim that is
covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
a) Representation
b) Adhesion
c) Consideration
d) Good faith
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CORRECT ANSWER: c) Consideration
Question 7: When the breadwinner that is insured by a Family
Policy dies, what rights are provided to other family members that are covered under the policy?
a) They can convert their coverage to permanent life insurance
with evidence of insurability.
b) Family members are not provided any rights.
c) They can surrender the coverage for its cash value.
d) They can convert their coverage to permanent life insurance
without evidence of insurability.
CORRECT ANSWER: d) They can convert their coverage to
permanent life insurance without evidence of insurability.
Question 8: Forcing a client to buy insurance from a particular
lender as a condition of granting a loan is defined as
