10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The NCLH exam has 60 questions and runs 1 hour 15 minutes.
These 10 free NCLH questions are organized by exam domain, so you can see how each part of the North Carolina Life & Health Insurance Exam blueprint is tested. Reveal the answer and explanation under each question.
The latest statement for a universal life policy shows $8,600 of beginning cash value, $2,000 of premium credited, $240 of interest credited, $340 of expenses, $4,700 of cost of insurance, and a $3,000 withdrawal. The next monthly deduction is $3,000, and the policy has no secondary no-lapse guarantee. Which conclusion is correct?
Correct answer: C - Ending value: $2,800; more funding is needed for the next deduction
Health has worsened for an insured whose convertible term policy remains within its conversion period. She wants permanent coverage and accepts premiums based on her current age. The conversion privilege permits her to:
Correct answer: A - Convert the permitted amount to an allowed permanent plan without new evidence
Estate-planning goal: one life policy should provide liquidity only after both spouses have died, with no benefit at the first death. The best match is:
Correct answer: D - Survivorship life insurance
For a fixed indexed annuity, the contract multiplies the index change by a 70% participation rate, subtracts a 0.4% spread, then applies a 7% cap and 0% floor. The index rises 9% for the term. The credited rate and contract classification are:
Correct answer: B - 5.9%; a general-account fixed annuity
After deciding to stop whole life premiums, a policyowner wants the original net face amount to remain in force for as long as accumulated value can purchase it. Temporary protection is acceptable. The owner should elect:
Correct answer: D - Extended term insurance
Under a 30-day survivorship clause, the insured dies and the primary beneficiary dies 12 days later. A contingent beneficiary is living. The proceeds are payable to the:
Correct answer: B - Contingent beneficiary
A corporation wants funds to offset lost profits and recruitment costs if its chief financial officer dies. The corporation will own the policy, pay the premiums, and receive the proceeds. The arrangement and premium treatment are:
Correct answer: A - Key-person insurance; premiums are generally not deductible
Flexible premiums, adjustable death-benefit options, and securities-based separate-account subaccounts are the client's priorities. The client accepts market and lapse risk. The appropriate recommendation is:
Correct answer: C - Variable universal life; insurance plus securities authority
North Carolina replacement rules apply to a complete new life application that identifies an existing insurer and policy. The existing insurer generally must be notified by the replacing insurer:
Correct answer: B - Within five business days
Twenty days after an individual life premium became due, the insured dies. The North Carolina policy provides the required 31-day grace period, and there is no policy loan. The insurer should:
Correct answer: D - Pay the death benefit less the overdue premium
The full bank has 1,020 more NCLH questions with explanations.
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