NC insurance test
which of the following best defines target premium in a universal life policy
The recommended amount to keeps the policy in force throughout its lifetime
The required privacy disclosure notice must be provided by insurer to current policyholders at least once in any period of
12 months
to attain currently insured status under social security a worker must have earned at least how many credits during the last 13 quarters
6 credits
who can make a fully deductible contribution to a traditional IRA
A individual not covered by an employer sponsored plan who has earned income
The least expensive first-year premium is found in which of the following polices
Annually renewable term
All of the following are true about variable products except
The premiums are invested in the insurer's general account
Which of the following best describe insurance
the transfer of risk
An insured purchased a 15- years level term insurance policy with a face amount of 100,000. The policy contained an accidental death rider offering a double indemnity benefit. The insured was severely injured in auto accident, and after 10 week of hospitalization, died from the injuries. How much will the beneficiary receive from the policy?
$200,000
within how many months must a person be expected to die from a sickness in order to be classified as terminally ill for the purposes of a viatical settlement ?
24
A young father would like a life insurance policy to provide coverage for all five family members at the lowest cost. which type of policy would he most likely buy?
Family protection policy
which of the following is correct regarding credit life insurance
It insure the life of a debtor
upon the death of the insured the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean
The beneficiary will only receive payment of the interest earned on the death benefit
which of the following is the basic source of information used by the company in the risk selection process
application
In case when an applicant for insurance is blind or deaf the insure underwriting the policy may do which of the following
apply the same standards as are used for applicants whose sight and hearing are not impaired
A person who knowingly obtains information about an individual from an agent or the insurance under false pretense has committed
class 1 misdemeanor
which of the following terms means something of value that each party gives to the other under an insurance contract
consideration
The type of policy that can be changed from one that dose not accumulate cash value to the one that does is a
convertible term policy
Two individuals are in the same risk and age class; yet they are charged different rates for their insurance policies due to an insignificant factor. what is called ?
discrimination
all of the following describe the purpose of the north Carolina regulations governing the solicitation of life insurance expect
educate the buyer about policy protection by the guaranty association
When the policy specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option.
fixed amount
if a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted what settlement option should the beneficiary select
fixed period
AN insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
illegals under any circumstances
what does the guaranty association against
insurer insolvency
A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. what types of annuity did the couple get
joint life
If a life insurance policy increase significantly in face amount(death benefit) when the insured reaches a specified age, what type of policy is this?
jumping juvenile policy
Cornering juvenile life insurance which of the following statements is incorrect
juvenile life is classified as any life insurance purchased by a minor
which universal life option has a gradually increasing cash value and a level death benefit
option a
Which of the following is not true about a joint and survivor annuity benefit option
payment stops after the Frist death among the annuitants
A universal life insurance policy is best described as a
permanent life insurance
which of the following individuals must have insurable interest in the insured
policyowner
Who is a person, other than a viator that enters into a viatical settlement contract
provider
All statements of the insured in any application for a policy of insurance are deemed
representation
If an immediate annuity is purchased with the face amount at death or with the cash value at surrender this would be considered a
settlement option
An IRA purchased by small employer to cove employees is know as a
simplified Employee pension plan
Which type of life insurance policy generates immediate cash value
single premium
When changing a beneficiary through an endorsement method, what is the policy owner required to do?
submit a request for change to the home office of the insurer
childeren's riders attached to whole life polices are usually issued as what type of insurance
term
what is the purpose of a fix period settlement option
to provide a guaranteed income for a certain amount of time
Which of the following types of polices allow the policy owner to skip premium, provided that there is enough cash value in the policy to cover the premium?
universal life
which of the following is key distinction between variable whole life and variable universal products
variable whole life has a guaranteed death benefit
which of the following term is used to describe a person other than enters into or effectuates a viatical contract
viatical settlement provider
