WEBCE Practice Exam 100 Questions with Verified Answers
1. In general, what is the earliest age at which a 59 1/2
person can take a distribution from a qualified
plan without a tax penalty?
2. Carol was 35 when she bought her deferred statutory minimum with-
annuity. Now, at age 38, she wants to withdraw holding requirements
funds from the contract to take a vacation. Carol
is likely to encounter all of the following conse-
quences in making the withdrawal EXCEPT:
3. What kind of misrepresentation on an insur- material fact
ance application gives the insurer reason to
terminate a policy?
4. Which of the following riders attached to De- disability income benefit
bra's life insurance policy provides for a month- rider
ly income to be paid if she becomes disabled?
5. In calculating their life insurance premiums, Total loading from all
which of the following statements generally policies should cover to-
guides insurance companies in determining the tal operating costs, pro-
"loading" factor? vide a safety margin, and
contribute to profits or
surplus.
6. What is the main difference between ordinary the length of time that
whole life and limited payment whole life insur- the insured must pay
ance? premiums
7. Abby lives in New Mexico, where she is licensed a valid driver's license
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:
8. Matt takes out a life insurance policy on himself his race
to protect his family. Matt's insurance company
may consider all of the following when under-
writing his policy EXCEPT:
, WEBCE Practice Exam 100 Questions with Verified Answers
9. Under which of the following do the cash val- variable life
ues and death benefits rise and fall on the ba-
sis of the policy's subaccount investment per-
formance, and for which the insurer does not
guarantee a rate of return on the cash value
invested?
10. To help determine how much life insurance a net future earnings dis-
prospect needs, agent Smith uses the human counted to a present val-
life value approach which is essentially based ue
on an estimate of the prospect's:
11. Which one of the following statements They are usually creat-
about Multiple Employer Welfare Arrangements ed by employers in the
(MEWAs) is most correct? same industry.
12. Which of the following best describes income the longer the payout
payments under the period certain payout op- period, the smaller the
tion? amount of each monthly
payment
13. Delta Co. buys a group life insurance policy for a policy
its employees. As the plan sponsor, what will
Delta receive?
14. Margie owns a fixed life insurance policy. What The policy guarantees a
type of death benefit is Margie guaranteed? fixed amount.
15. What is the minimum grace period required for 30 days
payment on an annuity?
16. Which one of the following has more than "an an irrevocable beneficia-
expectancy" that he or she will receive the ry
death benefit under a life insurance policy?
17. An agent for ABC Insurance Company meets apparent authority
with a client. The agent shows the client ABC's
sample policies, refers to the ABC rate book,
and gives the client an ABC business card.
1. In general, what is the earliest age at which a 59 1/2
person can take a distribution from a qualified
plan without a tax penalty?
2. Carol was 35 when she bought her deferred statutory minimum with-
annuity. Now, at age 38, she wants to withdraw holding requirements
funds from the contract to take a vacation. Carol
is likely to encounter all of the following conse-
quences in making the withdrawal EXCEPT:
3. What kind of misrepresentation on an insur- material fact
ance application gives the insurer reason to
terminate a policy?
4. Which of the following riders attached to De- disability income benefit
bra's life insurance policy provides for a month- rider
ly income to be paid if she becomes disabled?
5. In calculating their life insurance premiums, Total loading from all
which of the following statements generally policies should cover to-
guides insurance companies in determining the tal operating costs, pro-
"loading" factor? vide a safety margin, and
contribute to profits or
surplus.
6. What is the main difference between ordinary the length of time that
whole life and limited payment whole life insur- the insured must pay
ance? premiums
7. Abby lives in New Mexico, where she is licensed a valid driver's license
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:
8. Matt takes out a life insurance policy on himself his race
to protect his family. Matt's insurance company
may consider all of the following when under-
writing his policy EXCEPT:
, WEBCE Practice Exam 100 Questions with Verified Answers
9. Under which of the following do the cash val- variable life
ues and death benefits rise and fall on the ba-
sis of the policy's subaccount investment per-
formance, and for which the insurer does not
guarantee a rate of return on the cash value
invested?
10. To help determine how much life insurance a net future earnings dis-
prospect needs, agent Smith uses the human counted to a present val-
life value approach which is essentially based ue
on an estimate of the prospect's:
11. Which one of the following statements They are usually creat-
about Multiple Employer Welfare Arrangements ed by employers in the
(MEWAs) is most correct? same industry.
12. Which of the following best describes income the longer the payout
payments under the period certain payout op- period, the smaller the
tion? amount of each monthly
payment
13. Delta Co. buys a group life insurance policy for a policy
its employees. As the plan sponsor, what will
Delta receive?
14. Margie owns a fixed life insurance policy. What The policy guarantees a
type of death benefit is Margie guaranteed? fixed amount.
15. What is the minimum grace period required for 30 days
payment on an annuity?
16. Which one of the following has more than "an an irrevocable beneficia-
expectancy" that he or she will receive the ry
death benefit under a life insurance policy?
17. An agent for ABC Insurance Company meets apparent authority
with a client. The agent shows the client ABC's
sample policies, refers to the ABC rate book,
and gives the client an ABC business card.
