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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AnnuitiesSuitability & Taxation
How are earnings in a non-qualified deferred annuity taxed during the accumulation phase?
NC Insurance Law & EthicsNC Guaranty Act & Consumer Protection
The maximum annuity benefit coverage provided by the North Carolina Life and Health Insurance Guaranty Association is:
General InsuranceContracts & Terminology
Which part of an insurance policy personalizes the contract with information such as the insured's name, address, and premium?
AnnuitiesSuitability & Taxation
When a variable annuity is annuitized, how are the payments taxed?
NC Insurance Law & EthicsLicensing & Conduct
What happens to a North Carolina insurance agent's license if CE requirements are not met by the renewal date?
General InsuranceContracts & Terminology
In North Carolina, an insurance policy must specify all of the following EXCEPT:
Life InsurancePremiums & Taxes
An Irrevocable Life Insurance Trust (ILIT) is used primarily to:
AnnuitiesTypes & Payout Options
What is the main purpose of the insurer's general account?
General InsuranceInsurance Marketplace
An insurance broker in North Carolina legally represents:
NC Insurance Law & EthicsLicensing & Conduct
Which of the following is TRUE about continuing education requirements for North Carolina insurance agents?
Life InsurancePremiums & Taxes
Under what circumstances are life insurance premiums paid by a business deductible as a business expense?
Life InsuranceTypes of Policies
A 'return of premium' term life policy provides that if the insured is still alive at the end of the term, the insurer will:
Life InsuranceRiders & Provisions
An absolute assignment of a life insurance policy means the policyowner has:
NC Insurance Law & EthicsLicensing & Conduct
A North Carolina insurance agent who changes their business or home address must notify the NCDOI within how many days?
Life InsuranceGroup Life Insurance
An employer wants to insure a key executive under the company's group life plan with a benefit amount significantly higher than other employees. Which group insurance principle could this potentially violate?
Life InsuranceTypes of Policies
What is a primary characteristic of a Straight Life (or Continuous Premium) whole life policy?
Life InsuranceBeneficiaries
A policyowner wants to ensure that her spouse receives a monthly income from the life insurance proceeds, but also wants to ensure their children receive the principal after the spouse dies. Which settlement option should be chosen?
Life InsuranceVariable Products
All variable product sales must be suitable for the customer. Suitability is determined by evaluating all of the following EXCEPT:
Life InsuranceBeneficiaries
If no beneficiary is named in a life insurance policy, or if the named beneficiary is deceased, where do the death benefit proceeds go?
AnnuitiesTypes & Payout Options
The 'life with period certain' annuity payout option guarantees:
Life InsurancePremiums & Taxes
What is the tax implication of an accelerated death benefit paid to a terminally ill insured?
NC Insurance Law & EthicsLicensing & Conduct
An insurance agent in North Carolina who allows their license to lapse may reinstate it within what period without retaking the licensing exam?
General InsuranceBasic Principles
Risk sharing is best described as:
Life InsuranceVariable Products
Before a variable life insurance or variable annuity product can be sold, the prospective buyer must receive a:
Life InsuranceRiders & Provisions