Free North Carolina Life & Annuities Insurance Practice Exam 2
Prepare for your licensing exam with our realistic state-specific test questions, complete answers, and detailed rationales.
Exam Structure & Overview
Passing the North Carolina insurance exam is the ultimate step toward launching your career as a licensed professional. This practice test consists of 25 high-probability questions sampled to match the general composition of topics tested on the real state licensing examination.
Whether you are preparing for the Life & Annuities lines or a combined license, practicing with mock questions helps cement concepts, improves time management, and reduces test-day anxiety.
Key Practice Focus Areas
- State Laws & Regulations: Specific rules, licensing duties, and consumer protections.
- Policy Provisions & Options: Standard contract clauses, riders, exclusions, and riders.
- General Principles: Underwriting basics, insurance concepts, and legal requirements.
Recommended Study PathTry this practice exam fully. Review each explanation carefully when an answer is submitted. If you feel ready to unlock the full comprehensive question database, visit the main state hub for deeper exam simulations.
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Test 225 Questions
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NC Insurance Law & EthicsLicensing & Conduct
Which of the following is required before a person can sit for the North Carolina insurance licensing examination?
Life InsuranceVariable Products
During the accumulation phase of a variable annuity, the contract owner's contributions purchase:
Life InsuranceTypes of Policies
What is an endowment policy?
General InsuranceInsurance Marketplace
The McCarran-Ferguson Act (1945) established that:
Life InsuranceRiders & Provisions
Which nonforfeiture option uses the policy's cash value to purchase a term insurance policy for the same face amount as the original policy?
Life InsuranceTypes of Policies
A survivorship life insurance policy, also known as a 'second-to-die' policy, pays the death benefit when:
General InsuranceUnderwriting & Policy Issuance
The process where an insurer may check information from the Department of Motor Vehicles (DMV) for an applicant is part of:
AnnuitiesTypes & Payout Options
An annuity that begins making payments to the annuitant one payment interval after it is purchased is a(n):
General InsuranceBasic Principles
Risk sharing is best described as:
NC Insurance Law & EthicsLicensing & Conduct
In North Carolina, when must an insurance company notify the NCDOI of an agent's appointment?
Life InsuranceRiders & Provisions
The Incontestability Clause prevents the insurer from:
Life InsurancePremiums & Taxes
How is the death benefit of a life insurance policy paid to a beneficiary generally treated for tax purposes?
NC Insurance Law & EthicsNC Guaranty Act & Consumer Protection
The North Carolina Life and Health Insurance Guaranty Association protects policyholders when:
General InsuranceUnderwriting & Policy Issuance
If an underwriter determines an applicant is a higher-than-average risk, the applicant may be classified as:
NC Insurance Law & EthicsPolicy Replacement & Disclosure
In a North Carolina life insurance replacement, the agent must obtain from the applicant a signed:
Life InsuranceRiders & Provisions
The Accelerated Death Benefit rider allows a terminally ill insured to:
AnnuitiesTypes & Payout Options
A 'bonus' annuity adds a percentage (such as 3-5%) to the owner's initial premium or subsequent premiums. What is a common trade-off associated with bonus annuities?
AnnuitiesSuitability & Taxation
When money is withdrawn from a non-qualified annuity, how is the distribution taxed?
Life InsuranceBeneficiaries
The person or entity designated to receive the death benefit of a life insurance policy is the:
AnnuitiesSuitability & Taxation
What is the tax treatment of premiums paid for a non-qualified annuity?
Life InsuranceBeneficiaries
Can a minor be named as a beneficiary of a life insurance policy?
Life InsuranceVariable Products
The cash value of a variable life insurance policy is held in the insurer's:
Life InsuranceRiders & Provisions
The 'common disaster' clause in a life insurance policy is designed to address the situation where:
Life InsuranceVariable Products
The separate account of a variable life insurance policy is similar to a:
NC Insurance Law & EthicsPolicy Replacement & Disclosure