LIFE INSURANCE EXAM QUESTIONS WITH
QUESTIONS
AND VERIFIED ANSWERS 2025 GRADE A +
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 - CORRECT 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?
2
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 - CORRECT 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 - CORRECT 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 - CORRECT
Answer>>b
3
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 -
CORRECT 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 -
CORRECT 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
4
c) There is a 10% early withdrawal penalty
d) The amount distributed is subject to ordinary income
tax
- CORRECT 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 - CORRECT 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 - CORRECT Answer>>c
5
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 - CORRECT Answer>>c
All of the following are beneficiary designations EXCEPT
a) Contingent
b) primary
c) specified
d) tertiary - CORRECT 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 -
CORRECT Answer>>c
6
What type of account will most likely be established for a
minor?
a) Trust
b) Annuity
c) Credit life
d) Estate planning - CORRECT 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 - CORRECT 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 - CORRECT 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
7
c) on the day of policy delivery
d) 30 days after policy delivery - CORRECT Answer>>a
Life insurance ppolicy illustration riles apply to which of the
QUESTIONS
AND VERIFIED ANSWERS 2025 GRADE A +
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 - CORRECT 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?
2
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 - CORRECT 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 - CORRECT 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 - CORRECT
Answer>>b
3
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 -
CORRECT 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 -
CORRECT 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
4
c) There is a 10% early withdrawal penalty
d) The amount distributed is subject to ordinary income
tax
- CORRECT 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 - CORRECT 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 - CORRECT Answer>>c
5
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 - CORRECT Answer>>c
All of the following are beneficiary designations EXCEPT
a) Contingent
b) primary
c) specified
d) tertiary - CORRECT 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 -
CORRECT Answer>>c
6
What type of account will most likely be established for a
minor?
a) Trust
b) Annuity
c) Credit life
d) Estate planning - CORRECT 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 - CORRECT 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 - CORRECT 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
7
c) on the day of policy delivery
d) 30 days after policy delivery - CORRECT Answer>>a
Life insurance ppolicy illustration riles apply to which of the
