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North Carolina Life Agent — Information & Free Practice

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North Carolina Life Agent

Provider
Pearson VUE
Format
Four-option multiple-choice; general and state-specific parts receive one overall score
Exam questions
55 scored questions plus up to 5 unscored pretest questions
Time limit
1 hour, 15 minutes
Passing score
70 on a scaled score range of 0 to 100
Exam fee
$45 per examination attempt
Examination outline
  • I. TYPES OF INDIVIDUAL LIFE INSURANCE (17 questions)
    • A. Term
    • A.1. General nature
    • A.2. Basic types of term contracts
    • A.3. Special features
    • A.3.a. Renewability
    • A.3.b. Convertibility
    • B. Whole life insurance
    • C. Endowment
    • D. Premium variations
    • D.1. Single
    • D.2. Level (continuous/straight)
    • D.3. Adjustable/Flexible
    • D.4. Modified
    • D.5. Graded
    • D.6. Indeterminate (nonguaranteed)
    • E. Combination policies and variations in the basic forms
    • E.1. Double or triple (multiple) protection
    • E.2. Term riders
    • E.3. Family policy/riders
    • E.4. Face amount plus cash value
    • E.5. Face amount plus return of premium
    • E.6. Joint life
    • E.7. Last survivor / Survivorship Life
    • E.8. Juvenile / Jumping Juvenile
    • E.9. Limited benefit
    • F. Non-Traditional
    • F.1. Universal life (Adjustable life)
    • F.1.a. General nature
    • F.1.b. Features and Characteristics
    • F.1.b.(1). Target premium
    • F.1.b.(2). Unbundled
    • F.1.b.(3). Death benefit options
    • F.1.b.(4). Guaranteed values
    • F.1.b.(5). Corridor of insurance
    • F.2. Interest Sensitive Whole Life (Current Assumption Life)
  • II. ANNUITIES (5 questions)
    • A. The annuity principle
    • B. Annuity features
    • B.1. Premium paying method
    • B.1.a. Single premium
    • B.1.b. Installment premium: fixed/flexible/periodic
    • B.2. Determination of benefits
    • B.2.a. Fixed
    • B.2.b. Variable
    • B.2.c. Equity Index
    • B.3. When benefits begin
    • B.3.a. Immediate
    • B.3.b. Deferred
    • B.4. Number of lives of benefit payment
    • B.4.a. Single
    • B.4.b. Joint
    • B.4.c. Joint and survivor
    • B.5. Guarantee prior to annuity starting date
    • B.6. Guarantee of minimum total benefit
    • B.6.a. Straight (pure) life annuity
    • B.6.b. Annuity with period certain
    • B.6.c. Cash or refund installment annuity
  • III. POLICY PROVISIONS, OPTIONS, AND OTHER FEATURES (11 questions)
    • A. General provisions
    • A.1. Insuring agreement / Clause
    • A.2. Ownership clause
    • A.3. Entire contract clause
    • A.4. Incontestable clause
    • A.5. Grace period
    • A.6. Reinstatement clause
    • A.6.a. Common requirements
    • A.6.b. Possible advantages to policyholder
    • A.7. Misstatement of age clause
    • A.8. Assignment
    • A.8.a. Absolute
    • A.8.b. Collateral
    • A.9. Conversions/Change of plan
    • A.10. Excess interest provision
    • A.11. Free look provision
    • A.12. Withdrawal provisions
    • A.13. Additional / Other insured
    • A.13.a. Spouse
    • A.13.b. Child
    • A.14. Suicide
    • A.15. War
    • A.15.a. Results Type
    • A.15.b. Status Type
    • A.16. Aviation
    • B. Nonforfeiture values
    • B.1. Nature
    • B.2. Options for use of the value
    • B.3. Option applicable if no election made
    • C. Loan provisions
    • C.1. Nature
    • C.2. Interest
    • C.2.a. Fixed
    • C.2.b. Variable
    • C.3. Automatic premium loan
    • D. Right to defer loan or payment of cash value
    • E. Dividends
    • E.1. Nature of dividends
    • E.2. Options for the use of dividends
    • F. Settlement options
    • F.1. Options for the disposition of proceeds
    • F.2. Election
    • F.2.a. By owner
    • F.2.b. By beneficiary
    • G. Beneficiary provision
    • G.1. Beneficiary categories
    • G.1.a. Estate vs. named party
    • G.1.b. Named vs. class
    • G.1.c. Primary and contingent
    • G.1.d. Revocable vs. irrevocable
    • G.1.e. Minor designation
    • G.2. Common disaster and short-term survivorship
    • G.3. Uniform Simultaneous Death Act
    • G.4. Changing the beneficiary
    • G.4.a. Right to change
    • G.4.b. Methods: filing vs. endorsement
    • H. Premium payment
    • H.1. Modes (frequency)
    • H.2. Effect of nonpayment
    • H.3. Mortality charge
    • H.4. Expense charge
    • H.5. Interest credit
    • H.6. Load expense charges
    • H.6.a. Front end
    • H.6.b. Rear end
    • I. Additional rights or optional benefits
    • I.1. Change of contract
    • I.2. Accidental death benefit and dismemberment benefit
    • I.3. Guaranteed insurability
    • I.4. Waiver of premium
    • I.5. Waiver of monthly deduction (Universal Life)
    • I.6. Payor benefit (Juvenile)
    • I.7. Cost of living rider
  • IV. OTHER LIFE TOPICS (8 questions)
    • A. Types of group contracts
    • A.1. Term, including survivorship
    • A.2. Credit life
    • A.3. Mortgage life
    • B. Group underwriting
    • C. Master policy and certificates
    • D. Group Conversion
    • E. Tax qualified (sheltered) retirement plans
    • E.1. Individual retirement account (IRA)
    • E.2. Tax sheltered annuity (TSA)
    • E.3. Keogh Plans
    • E.4. Self-Employed Pension Plan (SEP)
    • E.5. 401k
    • F. Business uses of life insurance
    • F.1. Buy-sell agreements
    • F.1.a. Cross Purchase Plan
    • F.1.b. Entity Plan
    • F.2. Key person insurance
    • G. Social Security survivors, death, and retirement benefits
    • H. Federal income tax treatment of life insurance and annuity premiums, proceeds, dividends, and withdrawals
    • I. Legal concepts
    • I.1. Insurable interest
    • I.2. Misrepresentation and concealment
    • I.3. Impersonation
    • I.4. Unilateral
    • I.5. Adhesion
    • I.6. Indemnity
    • I.7. Aleatory
    • I.8. Conditional
    • J. Cost comparison methods: interest adjusted cost vs. traditional net cost
    • K. Formation of the life insurance contract
    • K.1. Application completion
    • K.2. Types and uses of initial premium receipts
    • K.3. Policy delivery
    • K.3.a. Modified/amended vs. issued as applied for
    • K.3.b. Nonprepaid (Statement of Continued Good Health)
    • K.3.c. Prepaid
    • K.4. Elements of a valid contract
    • L. Variable life, variable universal life, and variable annuity
    • L.1. FINRA registration
    • L.2. Values based on mutual funds or other securities
  • V. NORTH CAROLINA STATUTES AND REGULATIONS PERTINENT TO LIFE (14 questions)
    • A. Contract of Insurance — Ref: Article 1 (G.S. 58-1-10)
    • B. Definitions — Ref: Article 1 (G.S. 58-1-5)
    • C. Commissioner of Insurance — Ref: Article 2 (G.S. 58-2-5, 40, 50, 60, 65, 69, 70, 155, 160, 161, 162, 163, 180, 185, 195, 200); 11 NCAC, Chapter 19, Section .0103
    • D. General Regulations for Insurance — Ref: Article 3 (G.S. 58-3- 25, 30, 40, 115, 120, 130, 135, 140, 145)
    • E. Licensing of Agents, Brokers, Limited Representatives, and Adjusters — Ref: Article 33 (G.S. 58-33-1, 5, 10, 15, 17, 20, 26, 30, 31, 32, 35, 40, 46, 50, 56, 60, 66, 70, 75, 76, 80, 82, 83, 85, 90, 95, 100, 105, 110, 115, 120, 125, 130, 132, 135); 11 NCAC 4.0423, 11 NCAC, Chapter 4, Section .0423
    • F. Insurance Information & Privacy Protection Act — Ref: Article 39 (G.S. 58-39-5 through 58-39-120)
    • G. Unfair Trade Practices — Ref: Article 63 (G.S. 58-63-15, 20, 50)
    • H. False Pretenses and Cheats — Ref: Article 19 (G.S. 14-100)
    • I. Continuing Education — Ref: 11 NCAC, Chapter 6A, Section .0800
    • J. General Regulations of Business — Ref: Article 58 (G.S. 58-58-1, 5, 10, 15, 20, 22, 25, 30, 35, 40, 70, 75, 80, 85, 95, 100, 110, 115, 120, 135 (1) a– d, 170); 11 NCAC, Chapter 4, Section .0423
    • K. Regulations of Life Insurance Solicitation — Ref: Article 60 (G.S. 58-60-1, 15, 20, 30, 35)
    • L. Replacement Regulations — Ref: 11 NCAC, Chapter 12, Section .0612(a)(4)
    • M. General Regulations — Ref: 11 NCAC, Chapter 4, Section .0423 (Ethical Standards)
    • N. Fraternal Benefit Societies — Ref: Article 24 (G.S. 58-24-1
    • O. Life and Health Insurance Guaranty Association — Ref: Article 62 (G.S. 58-62-6, 21(d), 86)
    • P. Viaticals — Ref: 58-58-205(11)
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