Free Life Policy Provisions Options and Riders Practice Questions
North Carolina Life, Accident & Health exam — 92 practice questions.
Subtopics: Grace period, Incontestability, Suicide provision (NC), Automatic premium loan, Nonforfeiture extended term, Dividend options, Child rider, Spendthrift clause, Accidental death rider, Guaranteed insurability, Suicide clause, Reinstatement period, Contestability after reinstatement, Interest on death claims, Proceeds and creditors, Lapse notice, Policy loan interest, Standard provisions, Assignment, Beneficiaries, Beneficiary clauses, Settlement options, Nonforfeiture options, Policy loans, Riders, Reinstatement, Incontestable clause, Misstatement of age, Primary beneficiary, Irrevocable beneficiary, Minor beneficiary, Per capita, Estate as beneficiary, Dividend option cash, Dividend option reduce premium, Dividend option accumulate at interest, Dividend option one-year term, Joint and survivor settlement, Guaranteed insurability rider, Cost of living rider, Payor benefit rider, Return of premium rider, Child term rider, War exclusion, Aviation and avocation exclusions, Exclusions, Dividends, Accelerated benefits, Premium modes, Free look, Entire contract, Change of owner
Read the Life Policy Provisions Options and Riders study guide
Sample questions & answers
1. The minimum grace period required on North Carolina individual life policies is generally:
31 days
North Carolina requires individual life policies to include a grace period of at least 31 days during which the policy stays in force while an overdue premium may be paid.
2. After a life policy has been in force during the insured's lifetime for the contestable period, the insurer generally:
Cannot contest the policy except for nonpayment of premium
North Carolina requires that the policy not be contested, except for nonpayment of premium, once it has been in force for two years from issue.
3. Under North Carolina's required provisions, if an insured dies by suicide within two years after a life policy's date of issue, the insurer must pay at least:
A return of the premiums paid
A life policy may limit benefits for suicide for no more than two years after issue, and during that period it must provide at least a return of the premiums paid.
4. The automatic premium loan provision in a whole life policy:
Uses cash value to pay a premium that is overdue
The automatic premium loan provision advances the cash value to cover an overdue premium at the end of the grace period, preventing an unintended lapse.
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Practice: Life Policy Provisions Options and Riders
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
