Each module is scored separately here so you know exactly where you stand. To pass the real North Carolina exam you need 70%.
The free sample gives you about 20 questions per module. The full bank contains every question — general insurance plus state law — with written, statute-cited explanations. $49, one time, lifetime access on up to 3 devices — every state and line we add later included.
✓ One purchase, use it on up to 3 of your devices · no subscription · no account needed
North Carolina licenses Life and Accident & Health/Sickness as separate Pearson VUE exams. Each is a two-part test (a general insurance section and a North Carolina law section) of 55 scored questions, runs 1 hour 15 minutes, and requires an overall score of 70% (at least 39 of 55) to pass. This bank covers the general insurance material and the North Carolina law for both lines.
You need 70%. Practice each module to that level and run the full exam simulation before your test date.
No vendor publishes the live exam. Every question here is original, written to the official content outline and grounded in public-domain sources — including the North Carolina General Statutes (Chapter 58) for the state-law questions, with the statute section cited in each explanation.
The full North Carolina bank contains 1301 questions (general insurance plus North Carolina law), with written, source-cited explanations. The free sample gives you about 20 questions per module.
$49, one time, for lifetime access — and it includes every state and line we add later, at no extra charge. No subscription.
Yes. One purchase works on up to 3 of your devices, for example your laptop, phone and tablet, so you can practise wherever you are. Your progress is saved on each device.
No. The practice tests run in your browser with no signup. Your score history is saved on your own device.
A selection of free questions with answers and explanations. Use the interactive modules above for timed, scored drills.
Annuitization differs from a systematic withdrawal because annuitization:
Why: Annuitization exchanges the accumulated value for a guaranteed income stream; systematic withdrawal keeps the account and takes flexible amounts.
A family income policy combines whole life with:
Why: A family income policy adds decreasing term to whole life; if the insured dies during the period, it pays monthly income to the end of the period, then the face amount.
Three children are named 'per stirpes.' One child dies before the insured, leaving two children. Each surviving child gets 1/3, and the deceased child's 1/3 is:
Why: Per stirpes passes a deceased beneficiary's share to that beneficiary's descendants — here, the deceased child's two children split the 1/3.
A North Carolina long-term care policy may not exclude coverage for a loss or confinement that is the result of a pre-existing condition unless the loss or confinement begins within what period following the effective date of coverage?
Why: G.S. 58-55-30(c)(2) bars excluding coverage for a pre-existing-condition loss or confinement unless it begins within six months following the effective date of coverage.
Under North Carolina's utilization review law, prospective and concurrent review determinations must be communicated to the covered person's provider within how long after the insurer obtains all necessary information?
Why: G.S. 58-50-61(f) requires prospective and concurrent determinations to be communicated to the covered person's provider within three business days after the insurer obtains all necessary information.
An agent, to induce a sale, promises a prospect a special advantage in dividends that is not specified in the life policy contract. This conduct is prohibited as:
Why: G.S. 58-63-15(8)a prohibits giving or offering, as an inducement, any special favor or advantage in the dividends or other benefits not specified in the contract.
In an equity-indexed annuity, the 'cap rate' is the:
Why: The cap is the ceiling on credited interest; the participation rate sets the share of the gain and the floor sets the minimum.
A policy names three siblings as equal beneficiaries 'per capita.' One sibling dies before the insured. At the insured's death, the proceeds are:
Why: Per capita divides proceeds only among surviving named beneficiaries, so the two survivors split the full death benefit.
Under G.S. 58-33-135, the Commissioner shall appoint how many continuing education advisory committees?
Why: G.S. 58-33-135(a) requires one advisory committee for property and casualty licensees and one for life and accident and health or sickness licensees.
A worker contributes to an HSA, then uses the funds for a non-qualified expense before age 65. The withdrawal is:
Why: Non-qualified HSA withdrawals before 65 are taxable and subject to an additional 20% penalty; qualified medical withdrawals are tax-free.
A bank tells a borrower the loan will be approved only if they buy the lender's insurance. This unfair practice is:
Why: Using economic force — conditioning a loan on buying particular insurance — is coercion.
An employee has $150,000 of employer-paid group term life. How much of that coverage is subject to imputed taxable income?
Why: The first $50,000 of employer-paid group term life is tax-free; the cost of the remaining $100,000 is imputed income (per IRS Table I).
After a health policy is reinstated, losses from sickness are covered:
Why: On reinstatement, accidents are covered immediately, but sickness is covered only if it begins more than 10 days after the reinstatement date.
Under G.S. 58-58-146, what must every individual annuity contract contain as part of the contract?
Why: G.S. 58-58-146(a) requires every annuity contract subject to the section to contain as part of the contract the original or reproduction of the application.
An unallocated annuity contract issued in connection with a plan protected under the federal Pension Benefit Guaranty Corporation (PBGC) is:
Why: G.S. 58-62-21(c)(7) excludes any unallocated annuity contract issued to or in connection with a benefit plan protected under the PBGC, regardless of whether the PBGC has yet become liable.
An applicant who smokes a pack of cigarettes daily will most likely be classified as:
Why: Tobacco use raises mortality risk, typically placing the applicant in a substandard/rated class with a higher premium.
When does North Carolina group continuation coverage take effect once the employee elects it and makes the first contribution?
Why: G.S. 58-53-10 states the employee or member shall make the first contribution upon election and that the coverage shall be retroactive to the date of termination or loss of eligibility.
The evidence of coverage must disclose any limitations on services or benefits, including which cost-sharing features?
Why: G.S. 58-67-50(a)(3)b.2 requires the evidence of coverage to state any limitations on the services or benefits to be provided, including any deductible or copayment feature.
The key distinction between an agent and a broker is that an agent:
Why: An agent is the insurer's legal representative (acting under an agency contract); a broker represents the insurance buyer in seeking coverage.
Annuity suitability rules require a producer recommending an annuity to:
Why: Suitability standards require the recommendation be appropriate based on the consumer's financial situation, needs, and objectives.
An absolute assignment of a life insurance policy:
Why: An absolute assignment is a complete, permanent transfer of all ownership rights; a collateral assignment is only a temporary, partial pledge.
Under the endorsement method of a split-dollar plan, the policy is:
Why: In endorsement split-dollar the employer owns and controls the policy and endorses a portion of the death benefit to the employee's named beneficiary.
Before issuing or continuing an HMO license, what condition does the statute place on the payment of the license?
Why: G.S. 58-67-20(a) provides that the Commissioner shall issue a license upon payment of the application fee prescribed in G.S. 58-67-160 and upon being satisfied on the enumerated points.
A child (children's) term rider added to a parent's life policy:
Why: A child term rider covers the insured's children under one rider, usually convertible to permanent coverage without evidence.
Under North Carolina law, a covered person must file a request for a standard external review with the Commissioner within how many days after receiving the required notice of the right to external review?
Why: G.S. 58-50-80(a) provides that within 120 days after the date of receipt of the notice under G.S. 58-50-77, a covered person may file a request for an external review with the Commissioner.
A survivorship (second-to-die) life policy pays the death benefit when:
Why: Survivorship pays at the second death; it is common in estate planning to fund estate taxes.
For purposes of the Guaranty Association limits, benefits provided by a long-term care rider attached to a life insurance policy are treated as:
Why: G.S. 58-62-21(d)(8) provides that a long-term care rider's benefits are considered the same type of benefit as the base life policy or annuity contract to which it relates.
Which type of policy is NOT subject to the Standard Nonforfeiture Law for Life Insurance?
Why: G.S. 58-58-55(g)(6) exempts a term policy of uniform amount, of 20 years or less, that provides no guaranteed nonforfeiture or endowment benefits.
When an agent takes an annuity application in North Carolina, the application form must include the agent's certificate that the agent has done what?
Why: G.S. 58-58-146(a) requires the agent's certificate that the agent has truly and accurately recorded on the application form the information provided by the annuitant or proposed owner.
An annuitant has an $80,000 basis and a $200,000 expected return. Of each $10,000 payment, the taxable amount is:
Why: Exclusion ratio = 80,000/200,000 = 40%; $4,000 excluded, $6,000 taxable per payment.