Package deal
A PACKAGE DEAL FOR Life Insurance Exam 2023 with 100% correct answers
Life Insurance Exam 2023 with 100% correct answers NC LIFE insurance state exam 2023 with 100% correct answers
[Show more]Life Insurance Exam 2023 with 100% correct answers NC LIFE insurance state exam 2023 with 100% correct answers
[Show more]life insurance 
insurance that pays to a named beneficiary or the deceased's estate upon the death of the insured,may b annuity or endowment, may incl benef for accident death/dismemberment, disability, protects against risk pf premature death which exposes a finNcial riskto family or business. ie:...
Preview 2 out of 11 pages
Add to cartlife insurance 
insurance that pays to a named beneficiary or the deceased's estate upon the death of the insured,may b annuity or endowment, may incl benef for accident death/dismemberment, disability, protects against risk pf premature death which exposes a finNcial riskto family or business. ie:...
J has a life policy with the Guaranteed Insurability rider. J has just celebrated their 42nd birthday and realizes that she wants to use her rider and buy more death benefit. Which of the following will apply to J's request? 
A: The insurer will allow J to add more insurance without proving insurab...
Preview 4 out of 50 pages
Add to cartJ has a life policy with the Guaranteed Insurability rider. J has just celebrated their 42nd birthday and realizes that she wants to use her rider and buy more death benefit. Which of the following will apply to J's request? 
A: The insurer will allow J to add more insurance without proving insurab...
Upon completion of the application 
At what point must a life insurance applicant be informed of their rights to fall under the Fair Credit Reporting Act? 
 
 
 
Policyholders 
Who elects the governing body of a mutual insurance company? 
 
 
 
Fair Credit Reporting Act 
An insurance applicant MUST ...
Preview 2 out of 15 pages
Add to cartUpon completion of the application 
At what point must a life insurance applicant be informed of their rights to fall under the Fair Credit Reporting Act? 
 
 
 
Policyholders 
Who elects the governing body of a mutual insurance company? 
 
 
 
Fair Credit Reporting Act 
An insurance applicant MUST ...
Insurable Receipt 
The reciept given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) 
 
 
 
Representations 
Statements in the application for insurance that are believed to be true to the best of the applicants knowledge are 
 
 
 
...
Preview 2 out of 5 pages
Add to cartInsurable Receipt 
The reciept given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) 
 
 
 
Representations 
Statements in the application for insurance that are believed to be true to the best of the applicants knowledge are 
 
 
 
...
Basic Medical Expense policies 
Provide coverage for Hospital, Surgical and Physicians Medical Expense. 
-Purchased as a individual or group policy. 
-provide first dollar coverage (no deductibles). 
-limited benefit periods and low coverage limits. 
 
 
 
Major Medical Expense Policy 
-A supplement...
Preview 3 out of 21 pages
Add to cartBasic Medical Expense policies 
Provide coverage for Hospital, Surgical and Physicians Medical Expense. 
-Purchased as a individual or group policy. 
-provide first dollar coverage (no deductibles). 
-limited benefit periods and low coverage limits. 
 
 
 
Major Medical Expense Policy 
-A supplement...
An agent who sells an individual life insurance policy in NC MUST deliver to the policyowner 
A policy summary and buyer's guide 
 
 
 
All of the following actions are considered rebating EXCEPT 
Sharing commissions with other licensed and appointed agents 
 
 
 
What benefit does the Payor Clause...
Preview 3 out of 22 pages
Add to cartAn agent who sells an individual life insurance policy in NC MUST deliver to the policyowner 
A policy summary and buyer's guide 
 
 
 
All of the following actions are considered rebating EXCEPT 
Sharing commissions with other licensed and appointed agents 
 
 
 
What benefit does the Payor Clause...
contract that transfers risk of financial loss to an insurer 
insurace 
 
 
 
uncertainty about whether a loss will occur 
risk 
 
 
 
2 types of risk 
Pure and Speculative 
 
 
 
type of risk: 
-possibility of loss or gain 
-loss is not insurable 
speculative risk 
 
 
 
type of risk: 
-only loss c...
Preview 2 out of 6 pages
Add to cartcontract that transfers risk of financial loss to an insurer 
insurace 
 
 
 
uncertainty about whether a loss will occur 
risk 
 
 
 
2 types of risk 
Pure and Speculative 
 
 
 
type of risk: 
-possibility of loss or gain 
-loss is not insurable 
speculative risk 
 
 
 
type of risk: 
-only loss c...
What is meant by referring to an insurance policy as a unilateral contract? 
Only one party makes a legally enforceable promise. 
 
 
 
When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner? 
At all times 
 
 
 
Any situation that presents the po...
Preview 3 out of 16 pages
Add to cartWhat is meant by referring to an insurance policy as a unilateral contract? 
Only one party makes a legally enforceable promise. 
 
 
 
When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner? 
At all times 
 
 
 
Any situation that presents the po...
Which of the following premium modes would result in the HIGHEST annual cost for an insurance policy? 
Monthly 
 
 
 
The paid-up addition option uses the dividend 
To purchase a smaller amount of the same type of insurance as the original policy. 
 
 
 
Which of the following statements is incorrec...
Preview 1 out of 3 pages
Add to cartWhich of the following premium modes would result in the HIGHEST annual cost for an insurance policy? 
Monthly 
 
 
 
The paid-up addition option uses the dividend 
To purchase a smaller amount of the same type of insurance as the original policy. 
 
 
 
Which of the following statements is incorrec...
UNIT 1: The term used to describe the individual who is covered by the insurance is 
A. insurer 
B. insured 
C. policyowner 
D. risk 
B 
 
 
 
Which of the following is a risk? 
A. A car may need to have new brakes installed after several years of regular driving. 
B. An individual may need medical ...
Preview 3 out of 28 pages
Add to cartUNIT 1: The term used to describe the individual who is covered by the insurance is 
A. insurer 
B. insured 
C. policyowner 
D. risk 
B 
 
 
 
Which of the following is a risk? 
A. A car may need to have new brakes installed after several years of regular driving. 
B. An individual may need medical ...
What is the prerequisite for receiving a commission from an insurance transaction? 
License for same type of insurance transaction. 
 
 
 
When would life ins. proceeds be taxable by the Federal government? 
If there is a transfer for value (policy is sold to another person) 
 
 
 
A qualified plan ...
Preview 3 out of 21 pages
Add to cartWhat is the prerequisite for receiving a commission from an insurance transaction? 
License for same type of insurance transaction. 
 
 
 
When would life ins. proceeds be taxable by the Federal government? 
If there is a transfer for value (policy is sold to another person) 
 
 
 
A qualified plan ...
P wants to name her husband as the beneficiary of her life policy. However, she wishes to retain all of the rights of ownership. P should have her husband named as the: 
 
A.irrevocable beneficiary 
 
B.revocable beneficiary 
 
C.secondary beneficiary 
B 
 
 
 
A contract that has as its basic funct...
Preview 3 out of 19 pages
Add to cartP wants to name her husband as the beneficiary of her life policy. However, she wishes to retain all of the rights of ownership. P should have her husband named as the: 
 
A.irrevocable beneficiary 
 
B.revocable beneficiary 
 
C.secondary beneficiary 
B 
 
 
 
A contract that has as its basic funct...
The ownership provision entities the policy owner to do all of the following EXCEPT 
 
a) Assign the policy. 
b) Designate a beneficiary. 
c) Set premium rates. 
d) Receive a policy loan. 
c) Set premium rates. 
 
The insurer sets premium rates based upon underwriting considerations. 
 
 
 
Which of...
Preview 3 out of 29 pages
Add to cartThe ownership provision entities the policy owner to do all of the following EXCEPT 
 
a) Assign the policy. 
b) Designate a beneficiary. 
c) Set premium rates. 
d) Receive a policy loan. 
c) Set premium rates. 
 
The insurer sets premium rates based upon underwriting considerations. 
 
 
 
Which of...
Pooling of Risks 
A large group of people contribute money to a fund out of which their losses can be paid 
 
 
 
Policyowner 
is the person or org that applies for the policy and pays the premium 
 
 
 
Actuarial Tables 
Are statistical tables that are used when calculating premium rates and mortal...
Preview 3 out of 16 pages
Add to cartPooling of Risks 
A large group of people contribute money to a fund out of which their losses can be paid 
 
 
 
Policyowner 
is the person or org that applies for the policy and pays the premium 
 
 
 
Actuarial Tables 
Are statistical tables that are used when calculating premium rates and mortal...
Insurance 
(General concept) 
- transfers the risk of loss from an individual to an insurer 
- based on the principle of indemnity 
- based on the principle of risk (risk pooling) 
 
 
 
insurable interest 
(General Concept) 
- must exist at the time of the application 
- insuring one's own life, f...
Preview 2 out of 14 pages
Add to cartInsurance 
(General concept) 
- transfers the risk of loss from an individual to an insurer 
- based on the principle of indemnity 
- based on the principle of risk (risk pooling) 
 
 
 
insurable interest 
(General Concept) 
- must exist at the time of the application 
- insuring one's own life, f...
The balance of the loan will be taken out of the death benefit 
If a policy has a automatic loan provision, what happens if the insured dies before the loan is paid back? 
 
 
 
Inspection Report 
An insurer receives a report regarding potential insured that includes financial status, hobbies, and h...
Preview 3 out of 24 pages
Add to cartThe balance of the loan will be taken out of the death benefit 
If a policy has a automatic loan provision, what happens if the insured dies before the loan is paid back? 
 
 
 
Inspection Report 
An insurer receives a report regarding potential insured that includes financial status, hobbies, and h...
CREDIT LIFE 
a special type of coverage written to the life of the debtor and pay off the balance of a loan in the event of the death of the debtor. 
 
 
 
BUY-SELL AGREEMENTS 
a legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled. Oth...
Preview 2 out of 9 pages
Add to cartCREDIT LIFE 
a special type of coverage written to the life of the debtor and pay off the balance of a loan in the event of the death of the debtor. 
 
 
 
BUY-SELL AGREEMENTS 
a legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled. Oth...
Insurance 
-legal contract that transfers risk of financial loss from an individual or business to an insurer 
-insurer agrees to cover for certain losses 
 
 
 
risk 
-uncertainty about whether a loss will occur 
-if loss certain to occur, it doesn't involve risk 
-insurance only covers losses tha...
Preview 3 out of 18 pages
Add to cartInsurance 
-legal contract that transfers risk of financial loss from an individual or business to an insurer 
-insurer agrees to cover for certain losses 
 
 
 
risk 
-uncertainty about whether a loss will occur 
-if loss certain to occur, it doesn't involve risk 
-insurance only covers losses tha...
Which of the following would be considered a speculative risk? 
The possibility the painting you bought might be a long-lost masterpiece 
 
A speculative risk is one in which there is a chance for either loss or gain. Example: Gambling, Casino's, Lottery, etc. All of the other choices describe pure...
Preview 3 out of 26 pages
Add to cartWhich of the following would be considered a speculative risk? 
The possibility the painting you bought might be a long-lost masterpiece 
 
A speculative risk is one in which there is a chance for either loss or gain. Example: Gambling, Casino's, Lottery, etc. All of the other choices describe pure...
Accumulation units are converted into annuity units: 
at the time of annuity payout. 
 
 
 
A group life insurance plan in which the employer pays the entire premium is known as a ________________ plan. 
noncontributory 
 
 
 
If a disabled worker covered under Social Security disability benefits re...
Preview 2 out of 14 pages
Add to cartAccumulation units are converted into annuity units: 
at the time of annuity payout. 
 
 
 
A group life insurance plan in which the employer pays the entire premium is known as a ________________ plan. 
noncontributory 
 
 
 
If a disabled worker covered under Social Security disability benefits re...
An insurance producer selling a Variable Annuity whose cash value depends on the performance of an underlying investment account must be registered with: 
The Financial Industry Regulatory Authority (FINRA, formerly the NASD) 
 
 
 
A life insurance policy whose cash value will fluctuate depending u...
Preview 2 out of 11 pages
Add to cartAn insurance producer selling a Variable Annuity whose cash value depends on the performance of an underlying investment account must be registered with: 
The Financial Industry Regulatory Authority (FINRA, formerly the NASD) 
 
 
 
A life insurance policy whose cash value will fluctuate depending u...
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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!
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
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.
Stuvia is a marketplace, so you are not buying this document from us, but from seller YANCHY. Stuvia facilitates payment to the seller.
No, you only buy these notes for $40.49. You're not tied to anything after your purchase.
4.6 stars on Google & Trustpilot (+1000 reviews)
82871 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now