Free North Dakota 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 Dakota 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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General InsuranceBasic Principles
Which method of handling risk involves accepting financial responsibility for potential losses without purchasing insurance?
General InsuranceBasic Principles
Subrogation is the right of the insurer to:
General InsuranceBasic Principles
A hazard that increases the probability of loss due to a person's dishonest character is called a:
General InsuranceBasic Principles
The principle that requires both parties to an insurance contract to disclose all material facts is known as:
Life InsuranceTerm Life
Which statement about term life insurance is INCORRECT?
Life InsuranceWhole Life
Whole life insurance is characterized by all of the following EXCEPT:
Life InsuranceWhole Life
The cash value in a whole life policy grows on a:
Life InsuranceWhole Life
A limited-pay whole life policy (such as 20-Pay Life) differs from straight whole life because:
Life InsuranceWhole Life
Single premium whole life insurance is a policy:
Life InsuranceWhole Life
A 'participating' whole life policy pays policyowner dividends that are considered:
Life InsuranceWhole Life
Which of the following is a dividend option that uses dividends to purchase additional paid-up whole life insurance?
Life InsuranceWhole Life
Modified premium whole life insurance is characterized by:
Life InsuranceUniversal Life
Universal life insurance is distinguished from whole life by its:
Life InsuranceUniversal Life
In a universal life policy, the interest credited to the cash value:
Life InsuranceUniversal Life
The 'Option A' (Level Death Benefit) in universal life means:
Life InsuranceUniversal Life
The minimum premium that must be paid to keep a universal life policy in force is called the:
AnnuitiesFixed Annuities
In a fixed annuity, the interest crediting rate is:
AnnuitiesFixed Annuities
Fixed annuities are NOT classified as securities because:
AnnuitiesFixed Annuities
The 'bailout provision' in a fixed annuity allows the owner to:
AnnuitiesVariable Annuities
In a variable annuity, the 'separate account' refers to:
AnnuitiesVariable Annuities
An 'accumulation unit' in a variable annuity is:
North Dakota Insurance Law & EthicsDuties of Commissioner
When the North Dakota Insurance Commissioner conducts an official examination, what authority does the Commissioner hold regarding company records?
North Dakota Insurance Law & EthicsDuties of Commissioner
Before conducting a formal administrative hearing regarding an insurance code violation, how much advance written notice must the Commissioner give to the affected parties?
North Dakota Insurance Law & EthicsDuties of Commissioner
If the North Dakota Insurance Commissioner determines after a hearing that a licensee has engaged in an unfair method of competition or deceptive trade practice, what order may the Commissioner issue?
North Dakota Insurance Law & EthicsDuties of Commissioner