Certificate Exam

Which of the following statements is TRUE regarding an annuitant?

(Annuities) annuitant must be a natural person

If required, advertisements must be filed for review at least how many days before the insurer can use them?

(NC regs for life) 30 days

A person who knowingly presents a fraudulent claim to an insurer is guilty of

(NC regs for life) felony

Where must an insurer's home office be located for it to be considered an alien insurer?

(NC regs for life) in another country

A teacher may defer a portion of his earned income into a(n)

403(b) (TSA).

The Commissioner is required to examine books and records of all domestic insurers at least once every

5 years

Which of the following is TRUE regarding a joint life policy?

The premium is based on the average age of the insureds

Denying insurance coverage on the basis of a person's marital status is

Unfair discrimination

A married couple near retirement want to make sure that their retirement annuity provides monthly benefits for the rest of their lives. Should one of them die, the other would still like to continue receiving benefits. Which settlement option should they choose?

(Annuities) joint and survivor

If an annuitant selects the straight life annuity settlement option, in order to receive all of the money out of the contract, the annuitant would need to

(Annuities) live at least to the age of life expectancy

A fixed annuity has a guaranteed interest rate of 4%. This means that the annuitant will

(Annuities) never receive less than 4%

Three years ago, an insured bought a whole life policy for herself right after the birth of her first child. Now, the premiums are going to rise for the remainder of the insured's life. This is a/an

(Types of indiv.)indexed life policy

What type of group insurance plan requires that 75% of eligible employees be included in the plan?

A contributory plan

Another name for a Keogh Plan is

HR-10

Which of the following settlement options does NOT guarantee that the entire principal will be paid out to the beneficiary?

Life Income

Which of the following is INCORRECT regarding whole life insurance?

Policy loans are tax deductible

All of the following practices would be prohibited EXCEPT

Projecting a dividend on a participating policy.

Which of the following nonforfeiture options of a life insurance policy allows a policyowner to use the cash value to purchase additional insurance of the same type?

Reduced Paid-Up

Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?

Universal Life

In whole life insurance, which of the following terms describes features such as cash values and loan provisions?

(Types of indiv.) living benefits

Under a universal life insurance policy, policyowners have a choice between what two types of premiums?

(Types of indiv.) minimum premium and target premium

An insured covered by a life insurance policy with an accidental death rider was inured in an accident and died 120 days later. The policy had $50,000 coverage with triple indemnity. What will the beneficiary receive?

Face amount

How long is the grace period for an individual life insurance policy?

(Policy prov. Etc.) 1 month

What clause stipulates that if an insured and the primary beneficiary die as a result of the same incident, the benefits will be paid as if the primary beneficiary had died first?

(Policy prov. Etc.) common disaster clause

Which of the following nonforfeiture options would be automatically implemented by the insurer if none of the other options has been selected by the policyowner?

(Policy prov. Etc.) extended term

All of the following are types of whole life insurance EXCEPT

(Types of indiv. Etc.) level term

Statements made by an applicant for an insurance policy that are true to the best of the applicant's knowledge are referred to as

(Other life topics) representations

In which of the following types of temporary insurance protection does the death benefit NOT change throughout the life of the policy?

(Types of indiv.) level term

What is the required free-look period in replacement policies?

(NC regs. For life) 10 days

According to the definitions regarding viatical settlements, terminally ill means having a terminal illness that can reasonably be expected to result in death within no more than how many months?

(NC regs. For life) 24 months

When replacing a life insurance policy, a producer has all of the following duties EXCEPT

(NC regs. For life) Send a written communication to existing insurers advising them of the proposed replacement.

When must an insurer provide a buyer's guide and a policy summary to all prospective purchasers of life insurance?

(NC regs. For life) before accepting the initial payment

If an insurer makes a statement misrepresenting or incompletely comparing the terms of any insurance policy to induce a policyholder to drop an existing policy, what unfair practice has occurred?

(NC regs. For life) twisting

Which of the following is responsible for paying premiums on an insurance policy?

(Types of indiv.) policyowner

Which of the following is TRUE regarding a level term life policy written with a renewable provision?

(Types of indiv.) At the end of the term, the policy can be renewed without evidence of insurability.

Which of the following are the features of a variable life insurance policy?

(Types of indiv.) Fixed premium, guaranteed minimum death benefit, separate accounts

The insurance component of a Universal Life policy is what type of insurance?

(Types of indiv.) annually renewable term

How does the premium in a survivorship life policy compare to the premium in a joint life policy?

(Types of indiv.) it will be lower

A 35-year-old insured has a life insurance policy with a death benefit of $150,000. At the insured's age 65, the cash values of his policy will be $150,000. What type of policy does he have?

(Types of indiv.) life paid up at 65

An individual planning for retirement wishes to purchase a life insurance policy with living benefits. He does not wish to pay premiums beyond his income earning years. Which of the following life insurance products will best meet those requirements?

(Types of indiv.) limited pay whole life

Which of the following policy elements remains constant in Level, Increasing and Decreasing policies?

(Types of indiv.) premium

An adjustable life policy allows the policyowner to do any of the following EXCEPT

(Types of indiv.) skip premium payments

Term insurance provides coverage for

(Types of indiv.) specified period of time

When delivering a policy to an insured, an agent collects both the premium and a document verifying that the insured has not been inured or suffered any illnesses since completing the application. This is called

(Other life topics) a statement of good health

Credit life insurance is usually written as what type of policy?

(Other life topics) decreasing term

Which of the following best describes fixed-period settlement option?

(Annuities)Both the principal and interest will be liquidated over a selected period of time.

After receiving notice of loss, the insurer must provide the insured claims forms within

(NC regs. For life) 15 days

Upon termination of group life coverages, how many days does an employee have to convert to an individual policy?

(Other life topics) 31 days

The agent's personal observations regarding the applicant are included in

(Other life topics) producers report

Which of the following is NOT a condition that must be met by an owner of a lapsed policy in order to reinstate it?

(Policy prov. Etc.) providing evidence of employment

The minimum age to be eligible to enter into a contract to buy life insurance or annuities in this state is

15

What type of life insurance policy is used by insurance companies to fund certain riders?

Whole life insurance

An annuity pays a monthly amount for the remainder of the annuitant's life. If death occurs before the principal is exhausted, the remaining amount will be paid to a designated beneficiary. Which payment option has this annuitant selected?

(Annuities) refund life

Which of the following is the most appropriate annuity product for someone who has inherited a large sum of money?

(Annuities) single premium immediate annuity

All of the Following are grounds for license suspension, revocation, or refusal EXCEPT

(NC regs for life) sharing commissions

Which settlement option allows the insurer to retain the face amount but pay some income based on gain on the proceeds to the beneficiary at regular intervals?

(Policy prov. Etc.) interest only

Which of the following riders provides for a waiver of premium when the policyowner and the insured are NOT the same person?

(Policy prov. Etc.) payor benefit

Unlike the dividend itself, the interest earned on dividends is

(Policy prov. Etc.) taxable

When does the free-look period begin for insurance policies?

(Policy prov. Etc.) when the policy owner receives the policy

If a term life policy is convertible, that means that at the end of the policy term, the policyowner may convert coverage to

(Types of indiv.) whole life policy