1
WEBCE PRACTICE EXAM 100
QUESTIONS AND CORRECT
ANSWERS 2026 GET IT RIGHT !!!
In general, what is the earliest age at which a person can
take a distribution from a qualified plan without a tax
penalty? -
-Solution -59 1/2
Carol was 35 when she bought her deferred annuity.
Now, at age 38, she wants to withdraw funds from the
contract to take a vacation. Carol is likely to encounter
all of the following consequences in making the
withdrawal EXCEPT: -
-Solution -statutory minimum withholding
requirements
What kind of misrepresentation on an insurance
application gives the insurer reason to terminate a
policy? -
-Solution -material fact
Which of the following riders attached to Debra's life
insurance policy provides for a monthly income to be
paid if she becomes disabled? -
-Solution -disability income benefit rider
,2
In calculating their life insurance premiums, which of the
following statements generally guides insurance
companies in determining the "loading" factor? -
-Solution -Total loading from all policies should cover
total operating costs, provide a safety margin, and
contribute to profits or surplus.
What is the main difference between ordinary whole life
and limited payment whole life insurance? -
-Solution -the length of time that the insured must pay
premiums
Abby lives in New Mexico, where she is licensed as an
insurance agent and wants to apply for a nonresident
license in Arizona. She holds a current license in good
standing in New Mexico. When applying for a license in
Arizona, Abby must prove her citizenship by submitting:
-
-Solution -a valid driver's license
Matt takes out a life insurance policy on himself to
protect his family. Matt's insurance company may
consider all of the following when underwriting his
policy EXCEPT: -
-Solution -his race
Under which of the following do the cash values and
death benefits rise and fall on the basis of the policy's
subaccount investment performance, and for which the
insurer does not guarantee a rate of return on the cash
value invested? -
, 3
-Solution -variable life
To help determine how much life insurance a prospect
needs, agent Smith uses the human life value approach
which is essentially based on an estimate of the
prospect's: -
-Solution -net future earnings discounted to a present
value
Which one of the following statements about Multiple
Employer Welfare Arrangements (MEWAs) is most
correct? -
-Solution -They are usually created by employers in the
same industry.
Which of the following best describes income payments
under the period certain payout option? -
-Solution -the longer the payout period, the smaller the
amount of each monthly payment
Delta Co. buys a group life insurance policy for its
employees. As the plan sponsor, what will Delta receive?
-
-Solution -a policy
Margie owns a fixed life insurance policy. What type of
death benefit is Margie guaranteed? -
-Solution -The policy guarantees a fixed amount.
What is the minimum grace period required for
payment on an annuity? -
WEBCE PRACTICE EXAM 100
QUESTIONS AND CORRECT
ANSWERS 2026 GET IT RIGHT !!!
In general, what is the earliest age at which a person can
take a distribution from a qualified plan without a tax
penalty? -
-Solution -59 1/2
Carol was 35 when she bought her deferred annuity.
Now, at age 38, she wants to withdraw funds from the
contract to take a vacation. Carol is likely to encounter
all of the following consequences in making the
withdrawal EXCEPT: -
-Solution -statutory minimum withholding
requirements
What kind of misrepresentation on an insurance
application gives the insurer reason to terminate a
policy? -
-Solution -material fact
Which of the following riders attached to Debra's life
insurance policy provides for a monthly income to be
paid if she becomes disabled? -
-Solution -disability income benefit rider
,2
In calculating their life insurance premiums, which of the
following statements generally guides insurance
companies in determining the "loading" factor? -
-Solution -Total loading from all policies should cover
total operating costs, provide a safety margin, and
contribute to profits or surplus.
What is the main difference between ordinary whole life
and limited payment whole life insurance? -
-Solution -the length of time that the insured must pay
premiums
Abby lives in New Mexico, where she is licensed as an
insurance agent and wants to apply for a nonresident
license in Arizona. She holds a current license in good
standing in New Mexico. When applying for a license in
Arizona, Abby must prove her citizenship by submitting:
-
-Solution -a valid driver's license
Matt takes out a life insurance policy on himself to
protect his family. Matt's insurance company may
consider all of the following when underwriting his
policy EXCEPT: -
-Solution -his race
Under which of the following do the cash values and
death benefits rise and fall on the basis of the policy's
subaccount investment performance, and for which the
insurer does not guarantee a rate of return on the cash
value invested? -
, 3
-Solution -variable life
To help determine how much life insurance a prospect
needs, agent Smith uses the human life value approach
which is essentially based on an estimate of the
prospect's: -
-Solution -net future earnings discounted to a present
value
Which one of the following statements about Multiple
Employer Welfare Arrangements (MEWAs) is most
correct? -
-Solution -They are usually created by employers in the
same industry.
Which of the following best describes income payments
under the period certain payout option? -
-Solution -the longer the payout period, the smaller the
amount of each monthly payment
Delta Co. buys a group life insurance policy for its
employees. As the plan sponsor, what will Delta receive?
-
-Solution -a policy
Margie owns a fixed life insurance policy. What type of
death benefit is Margie guaranteed? -
-Solution -The policy guarantees a fixed amount.
What is the minimum grace period required for
payment on an annuity? -
