Free North Carolina Life & Annuities Insurance Practice Exam 3
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 325 Questions
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Life InsuranceBeneficiaries
The person or entity designated to receive the death benefit of a life insurance policy is the:
General InsuranceContracts & Terminology
What is a 'binder' in insurance?
NC Insurance Law & EthicsNC Guaranty Act & Consumer Protection
The North Carolina Life and Health Insurance Guaranty Association protects policyholders when:
NC Insurance Law & EthicsLicensing & Conduct
In North Carolina, an insurance agent who has been convicted of a felony:
Life InsurancePremiums & Taxes
'Incidents of ownership' in a life insurance policy include all of the following EXCEPT:
AnnuitiesTypes & Payout Options
The period during which an annuity makes payments to the annuitant is the:
Life InsuranceTypes of Policies
A policy that allows the policyowner to convert their term coverage to permanent coverage without evidence of insurability is called a:
AnnuitiesSuitability & Taxation
The NAIC Suitability in Annuity Transactions Model Regulation requires a producer to:
General InsuranceContracts & Terminology
The part of the policy that outlines the duties and responsibilities of both the insurer and the insured is the:
Life InsurancePremiums & Taxes
For a settlement option, what part of the payment is taxable?
NC Insurance Law & EthicsNorth Carolina Insurance Code & Unfair Practices
In North Carolina, 'twisting' refers to:
Life InsuranceRiders & Provisions
The provision that allows a policyowner to restore a lapsed policy to its original status is the:
Life InsuranceRiders & Provisions
A 'life income with period certain' settlement option guarantees:
NC Insurance Law & EthicsNorth Carolina Insurance Code & Unfair Practices
Under the North Carolina Insurance Code, 'controlled business' refers to:
Life InsuranceBeneficiaries
A policyowner fails to pay a premium, and the policy lapses. The policyowner dies a few days later during the grace period. What will the insurer do?
Life InsurancePremiums & Taxes
How does interest earned on premiums affect the overall premium amount?
General InsuranceInsurance Marketplace
Which of the following distribution systems uses agents who represent only one insurance company?
Life InsuranceGroup Life Insurance
Key person life insurance purchased through a group plan is intended to compensate which party in the event of the key person's death?
Life InsurancePremiums & Taxes
If a life insurance policy is included in the insured's gross estate, it may be subject to:
Life InsuranceTypes of Policies
A client wants to purchase a life insurance policy to cover a 30-year mortgage. Which policy would be the most cost-effective and appropriate?
NC Insurance Law & EthicsNorth Carolina Insurance Code & Unfair Practices
Under North Carolina law, an agent who knowingly makes a false statement on an insurance application may be charged with:
AnnuitiesTypes & Payout Options
What is the main purpose of the insurer's separate account?
Life InsurancePremiums & Taxes
When does the 7-pay test apply?
AnnuitiesTypes & Payout Options
To sell variable annuities, a producer must hold which licenses?
General InsuranceBasic Principles