WEBCE EXAM QUESTIONS
WITH CORRECT ANSWERS
In general, what is the earliest age at which a person can take a
|| || || || || || || || || || || || || ||
distribution from a qualified plan without a tax penalty? - CORRECT
|| || || || || || || || || || ||
ANSWER✔✔-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: - CORRECT
|| || || || || || || ||
ANSWER✔✔-statutory minimum withholding requirements || || ||
What kind of misrepresentation on an insurance application gives
|| || || || || || || || ||
the insurer reason to terminate a policy? - CORRECT ANSWER✔✔-
|| || || || || || || || ||
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? - CORRECT ANSWER✔✔-disability income benefit rider
|| || || || || ||
,In calculating their life insurance premiums, which of the following
|| || || || || || || || || ||
statements generally guides insurance companies in determining the
|| || || || || || ||
"loading" factor? - CORRECT ANSWER✔✔-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? - CORRECT ANSWER✔✔-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: - CORRECT ANSWER✔✔-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: - CORRECT ANSWER✔✔-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? - CORRECT ANSWER✔✔-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: - CORRECT ANSWER✔✔-net future
|| || || || || || || || ||
earnings discounted to a present value
|| || || || || ||
Which one of the following statements about Multiple Employer
|| || || || || || || || ||
Welfare Arrangements (MEWAs) is most correct? - CORRECT
|| || || || || || || ||
ANSWER✔✔-They are usually created by employers in the same || || || || || || || || ||
industry.
Which of the following best describes income payments under the
|| || || || || || || || || ||
period certain payout option? - CORRECT ANSWER✔✔-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? - CORRECT ANSWER✔✔-a
|| || || || || || || || || ||
policy
Margie owns a fixed life insurance policy. What type of death
|| || || || || || || || || || ||
benefit is Margie guaranteed? - CORRECT ANSWER✔✔-The policy
|| || || || || || || ||
guarantees a fixed amount. || || ||
WITH CORRECT ANSWERS
In general, what is the earliest age at which a person can take a
|| || || || || || || || || || || || || ||
distribution from a qualified plan without a tax penalty? - CORRECT
|| || || || || || || || || || ||
ANSWER✔✔-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: - CORRECT
|| || || || || || || ||
ANSWER✔✔-statutory minimum withholding requirements || || ||
What kind of misrepresentation on an insurance application gives
|| || || || || || || || ||
the insurer reason to terminate a policy? - CORRECT ANSWER✔✔-
|| || || || || || || || ||
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? - CORRECT ANSWER✔✔-disability income benefit rider
|| || || || || ||
,In calculating their life insurance premiums, which of the following
|| || || || || || || || || ||
statements generally guides insurance companies in determining the
|| || || || || || ||
"loading" factor? - CORRECT ANSWER✔✔-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? - CORRECT ANSWER✔✔-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: - CORRECT ANSWER✔✔-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: - CORRECT ANSWER✔✔-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? - CORRECT ANSWER✔✔-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: - CORRECT ANSWER✔✔-net future
|| || || || || || || || ||
earnings discounted to a present value
|| || || || || ||
Which one of the following statements about Multiple Employer
|| || || || || || || || ||
Welfare Arrangements (MEWAs) is most correct? - CORRECT
|| || || || || || || ||
ANSWER✔✔-They are usually created by employers in the same || || || || || || || || ||
industry.
Which of the following best describes income payments under the
|| || || || || || || || || ||
period certain payout option? - CORRECT ANSWER✔✔-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? - CORRECT ANSWER✔✔-a
|| || || || || || || || || ||
policy
Margie owns a fixed life insurance policy. What type of death
|| || || || || || || || || || ||
benefit is Margie guaranteed? - CORRECT ANSWER✔✔-The policy
|| || || || || || || ||
guarantees a fixed amount. || || ||
