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NC Life Insurance Practice Exam Questions with 100% Correct Answers
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NC Life Insurance Practice Exam Questions with 100% Correct Answers
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©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AMNC Life Insurance Practice Exam Questions
with 100% Correct Answers
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. - ✔️✔️c)
Writing North Carolina insurance laws.
Writing insurance law is not the Insurance Commissioner's responsibility, but enforcing
the law is.
Which of the following insurance providers must be nonprofit and sell insurance only to
its members?
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,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
a) Reciprocal
b) Fraternal
c) Service
d) Mutual - ✔️✔️b) Fraternal
To be characterized as a fraternal benefit society, the organization must be nonprofit,
have a lodge system that includes ritualistic work and maintain a representative form of
government with elected officers. Insurance may only be sold to members of the
society.
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 - ✔️✔️c)Joint Life Policy
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,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
Joint life policies cover the lives of two insureds; rates are blended. Upon the death of
the first insured, the policy ends.
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?
a)$0
b)$50,000 (50% of the policy value)
c)$100,000
d)$300,000 (triple the amount of policy value) - ✔️✔️c)$100,000
The triple indemnity accidental death rider obligates the company to pay three times the
face amount of the policy if the insured dies as a result of an accident. The death must
be accidental and not contributed to by any other factors and must occur within 90 days
of the accident. In this case, since the insured contributed to his own death, the triple
indemnity rider is void, but the beneficiary will still receive the policy's death benefit.
In term policies, what happens to the premium throughout the term of the policy?
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, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
a) Premium gradually increases.
b) Premium gradually decreases.
c) Premium fluctuates.
d) Premium always remains level. - ✔️✔️d) Premium always remains level.
There are three basic types of term coverage available, based on how the face amount
(death benefit) changes during the policy term: Level, Increasing, and Decreasing.
Regardless of the type of term insurance purchased, the premium is often level
throughout the term of the policy.
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 - ✔️✔️c) Consideration
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