Life insurance exam questions WI Questions and Answers
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Course
Life insurance WI
Institution
Life Insurance WI
Life insurance exam questions WI
What is the purpose of the Wisconsin State Life Insurance Fund?
a) to offer low-cost life insurance to state residents
b) To protect insured against insolvent insurers
c) To advertise different types of life insurance policies available in the state
d) To p...
Life insurance exam questions WI
What is the purpose of the Wisconsin State Life Insurance Fund?
a) to offer low-cost life insurance to state residents
b) To protect insured against insolvent insurers
c) To advertise different types of life insurance policies available in the state
d) To provide life insurance through licensed intermediaries - Answer- a
An employee is insured under her employer's group life plan. If she terminates her
group coverage, which of the following statements is INCORRECT?
a) The premium for individual coverage will be based upon the insured's attained age
b) The insured may choose to convert to term or permanent individual coverage
c) The insured would not need to prove insurability for a conversion policy
d) The insured may convert coverage to an individual policy within 31 days - Answer-
b
During a life insurance policy replacement, the insurer is required to provide the
policyowner a free-look period of at least
a) 10 days
b) 20 days
c) 30 days
d) 90 days - Answer- c
Which of the following named beneficiaries would NOT be able to receive the death
benefit directly from the insurer in the event of the insureds' death?
a) the former wife of the deceased insured
b) a minor son of the insured
c) a business partner of the insured
d) the wife of the deceased insured - Answer- b
All of the following statements concerning the use of life insurance as an Executive
Bonus are correct EXCEPT
a) The policy is owned by the company
b) Any type of insurance policy may be used
c) The employer pays a bonus to a selected employee to fund the policy
d) It is considered a nonqualified employee benefit - Answer- a
Which of the following is NOT true regarding policy loans?
a) Policy loans can be repaid at death
b) an insurer can charge interest on outstanding policy loans
c) a policy loan may be repaid after the policy is surrendered
d) Money borrowed from the cash value is taxable - Answer- d
,A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an
IRA within 60 days. Which of the following is true?
a) The amount of the distribution is reduced by the amount of a 20% withholding tax
b) No taxes are due since the plan participant is over age 59 1/2
c) There is a 10% early withdrawal penalty
d) The amount distributed is subject to ordinary income tax - Answer- a
All of the following are true regarding the guaranteed insurability rider EXCEPT
a) this rider is available to all insureds with no additional premium
b) The insured may purchase additional coverage at the attained age
c) The insured may purchase additional insurance up to the amount specified in the
base policy
d) It allows the insured to purchase additional amounts of insurance without
providing insurability only at specified dates or events - Answer- a
A claimant, whi is totally and permanently disabled, is eligible for Social Security
Disability benefits after an elimination period of
a) 24 months
b) 0 months
c) 5 months
d) 12 months - Answer- c
In a case where the primary beneficiary predeceases the insured, in the event of the
insured's death, the death benefit proceeds will be paid to
a) the policy owner
b) the insurance company
c) The contingent beneficiary
d) the insured's spouse - Answer- c
All of the following are beneficiary designations EXCEPT
a) Contingent
b) primary
c) specified
d) tertiary - Answer- c
If the owner of a whole life policy who is also the insured dies at age 80, and there
are no outstanding loans on the policy, what portion of the death benefit will be paid
to the beneficiary?
a) 50% of the death benefit
b) the face amount minus the premiums that would have been collected until the
insured reached the age of 100
c) a full death benefit
d) a death benefit equal to the cash value of the policy - Answer- c
, What type of account will most likely be established for a minor?
a) Trust
b) Annuity
c) Credit life
d) Estate planning - Answer- a
The interest earned on policy dividends is
a) non taxable
b) tax deductible
c) 40% taxable, similar to a capital gain
d) taxable - Answer- d
All of the following entities regulate variable life policies EXCEPT
a) the Guaranty Association
b) Federal Government
c) the SEC
d) the Insurance Department - Answer- a
What is the latest point that a Buyer's Guide can be issued?
a) when the applicant turns in the application
b) Up until the day before policy delivery
c) on the day of policy delivery
d) 30 days after policy delivery - Answer- a
Life insurance ppolicy illustration riles apply to which of the following types of
policies?
a) Whole life insurance
b) Variable life insurance
c) Individual annuity contracts
d) Life insurance with a face amount of less than $10,000 - Answer- a
The dividend option in which the policyowner uses dividends to purchase a term
policy or one year is referred to as the
a) accelerated endowment
b) Paid-up additions
c) One-year term option
d) Paid-up option - Answer- c
Which of the following is true regarding a market value adjusted annuity?
a) the insurer bears all the market risk of changing interest rates
b) there are no penalties for a premature surrender of the annuity
c) it provides a level benefit payment
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