****

insurance producer license

A business entity selling, soliciting, or negotiating insurance must obtain:

Spend thrift clause

A clause that protects a beneficiary from creditors coming after the proceeds of a policy is called which of the following?

Mortgage benefits

A fraternal benefit society may provide all of the following benefits, EXCEPT:

4 homes

A lender engaged in making or servicing real estate mortgage loans will accept as evidence of insurance a temporary written contract of insurance on a maximum of how many family residences?

true

A lender may never require the purchase of insurance as a condition to a loan

90 days

A nonresident licensee does not need to complete any prelicensing requirements if they had a license in their home state within the previous:

was engaging in defamation

An insurance producer inquired with what company a prospective client had a Medicare Supplement policy. When she told him, the producer was silent. Concerned by his silence, the woman asked if the company was a reliable company. The producer asked, "Have you received any financial statements regarding their solvency?" This producer:

Endorsement

Another term that means rider is:

2 years

At what point does an insurance policy become incontestable, even if fraud is evident?

15000

Brokers must put forth a bond of at least how much?

Guaranteed

Cash value in a whole life policy is:

Nothing

Claire has a policy with a payor provision and a 9 year old child. What happens if the child becomes disabled?

Higher

Compared to ordinary whole life policies, universal life interest rates are:

SubStandard

Higher risk, policy rated, highest premium

within the first 15 days that the first application is delivered

How soon must an insurer file an appointment notice with the Commissioner after appointing an agent?

Fixed period

If Louise wants to provide her beneficiary with equal payments for a specific period of time using the proceeds of her life insurance, she would select which of the following options?

30 days

If an applicant disagrees with the outcome of the review, how much time do they have to request a hearing with the Commissioner?

The commissioner

If an applicant has not fully met the requirements for licensing, who issues the denial?

15 days

If an insurer terminates an appointment with a producer, how much time does it have to notify the producer?

issue a restraining order

If the Commissioner believes a person has violated any insurance law, he may apply to a court to:

2000

If the Commissioner finds a person has intentionally misstated financial information, what is the minimum penalty?

arrest with warrant

If the Commissioner is of the opinion that there is evidence to charge any person with a criminal violation, the Commissioner may:

Class C felony

If the value of the money, negotiable instrument, or other consideration is $100,000 or more, violation

Class H felony

If the value of the money, negotiable instrument, or other consideration is less than $100,000, violation

an individual a partnership or a corporation

In North Carolina, a "person" can be:

Within 10 days of the charge

In North Carolina, if a licensee is convicted of a crime, how soon must the Commissioner be notified?

5 years

Insurers must keep records of all complaints for at least:

April 1st each year

Insurers must submit renewals of agent appointments to the Commissioner by:

true

Licensed agents, brokers, or limited representatives may not solicit insurance in North Carolina for companies not authorized to do business in North Carolina.

When the application does not include the premium

Martin is applying for a life insurance policy. When is a statement of good health required:

Investigative Consumer Report

No insurance institution, agent, or insurance support organization may prepare or request an i

commissioner or administrator

No person shall provide, present, or instruct any continuing education course unless that person has been qualified and possesses a license from:

What is the main purpose of the MIB?

Prevent fraud and misrepresentation

The purpose of the North Carolina Life and Health Insurance Guaranty Association is to:

Protect against failure in the performance of contractual obligations

Adjustable Life

Raise or lower premium Raise or lower face amount Change coverage period Change premium-paying period an adjustable life policy could be entirely whole or term, or a mix of both. When the premium is decreased or the face amount increased, the insured is typically required to provide evidence of insurability. Take out policy loans, Reinstate the policy, and Utilize nonforfeiture and settlement options.

FINRA

Resident agents may sell variable annuity products if they have met what other requirements?

Long term care rider

Some riders can affect the death benefit of a life insurance policy. Which of the following riders can decrease the death benefit?

Write insurance laws or amend insurance statues

The NC Commissioner of Insurance cannot

Uniform Simultaneous Death Act

The _______________ solves the problem of determining who receives the policy proceeds if the insured and the primary beneficiary are killed at the same time due to a common accident.

3 or 6 months

The appropriate rider allows premium payments to be waived in the event of disability. What is the normal waiting period for premiums to be waived?

Cash Value

The cash value increases as interest is earned on the premiums, and grows tax-deferred

civil penalty and forfeiture fund

The proceeds of forfeitures will be remitted to the:

An insurer's general account is:

Used to invest premiums for fixed annuities

Interest is tax deferred

What are the tax consequences of interest growth on the cash value in a whole life policy

Target Premium and Minimum premium

What are the two premiums in a universal life insurance policy?

the governor fills the position

What happens if a vacancy occurs during the North Carolina Insurance Commissioner's term?

10$

What is the annual fee for an individual agent appointment?

5000

What is the maximum penalty for willfully violating a cease and desist order of the Commissioner?

When they are sold through coin operated machines`

What is the only instance when blank insurance policies can be countersigned?

coercion

What unfair trade practice manipulates through the prospect of something desirable?

Insurance Information and privacy protection act

Which act limits the disclosure of information collected in connection with insurance transactions and enables insurance applicants and policyholders to obtain the reasons for any adverse underwriting decision?

Annuity Rider

Which life insurance rider affecting the policy's death benefit protects against the chance of depleting income during prolonged life?

High Cost administering a trust

Which of the following is a drawback in naming a trust as a beneficiary of a life insurance policy?

trust

Which of the following types of life insurance beneficiary designations should be used to establish a scholarship fund?

Exchange privilege rider

Which rider allows the named insured to be changed in a life insurance policy?

Collateral

Which type of assignment is partial and temporary?

All insurers in North Carolina

Who are the members of the North Carolina Life and Health Insurance Guaranty Association?

NAIC

Who created the "Uniform Business Entity Application"?

Limited Representative

Who is a person authorized by the Commissioner to solicit contracts for credit life, accident and health, credit, travel accident and baggage, motor club, and dental services coverages?

The insurer

Who pays an agents appointment fees

Member Companies

Who provides funding for the North Carolina Life and Health Insurance Guaranty Association?

true

a licensed resident agent never has to countersign on behalf of a nonresident agent

A Guaranteed minimum rate that may earn a higher current rate\

cash value in a universal policy

Signing a blank contract

class 3 misdemeanor and minimum of 1000$ or maximum of 5000$

State voters

how is the commissioner of insurance elected

Class 1 misdemeanor

if the person or entity does not know that the insurer is an unauthorized insurer. Each solicitation, negotiation, or sale shall constitute a separate offense.

Universal life

increase or decrease face amount increase or decrease premium skip premium payments Increase of face amount requires proof of insurability Unbundled insurance/ Buy term and invest the difference Primary difference between Universal life and Adjustable life is that Universal can skip payments as long as there is enough cash value to cover it and death protection

pretext interview

means an interview in which a person, in an attempt to obtain information about a natural person, performs one or more of the following acts

Which of the following best describes the return of premium rider

pays the total amount of premiums paid into the policy as long as the insured dies within a certain time period specified in the policy.

universal life

permanent life insurance policies is interest-sensitive?