LIFE INSURANCE WI ACTUAL FINAL

LIFE INSURANCE WI ACTUAL FINAL

EXAM WITH 160 QUESTIONS AND

WELL-VERIFIED CORRECT ANSWERS |

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What is the purpose of the Wisconsin State Life Insurance Fund?

• 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

The interest earned on policy dividends is

• non taxable
• tax deductible
• 40% taxable, similar to a capital gain
• taxable - ANSWER- d
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All of the following entities regulate variable life policies EXCEPT

• the Guaranty Association

b) Federal Government

• the SEC
• the Insurance Department - ANSWER- a

What is the latest point that a Buyer's Guide can be issued?

• when the applicant turns in the application

b) Up until the day before policy delivery

• on the day of policy delivery
• 30 days after policy delivery - ANSWER- a

Life insurance policy 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

• accelerated endowment 2 / 4

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?

• the insurer bears all the market risk of changing interest rates
• there are no penalties for a premature surrender of the annuity
• it provides a level benefit payment
• the owner is guaranteed a fixed interest rate for a specific period of time -

ANSWER- d

Which part of an insurance application would contain information regarding the cause of death of the applicant's deceased relatives?

a) Medical information

b) Inspection report

c) Agent's report

d) General information - ANSWER- a

Which of the following is NOT an example of an insurable interest?

a) Employer in employee

• child in parent

c) Debtor in creditor

• business partners in each other - ANSWER- c 3 / 4

All of the following statements are true regarding tax-qualified annuities EXCEPT

• annuity earnings are tax deferred
• they must be approved by the IRS
• withdrawals are taxed
• employer contributions are not tax deductible - ANSWER- d

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

• 10 days
• 20 days
• 30 days
• 90 days - ANSWER- c
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