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WebCE Exam Tutor Questions and
Correct Answers/ Latest Update /
Already Graded
All of the following are eligible to purchase a group life insurance
policy EXCEPT:
the Wonderful Widget Company, which employs more than 200
people
the State Electrical Workers Union
the Retailers Multiple Employer Trust, formed by two retailers to
purchase insurance for their employees
Stan and his neighbors, who form their own group to buy group
coverage at a lower cost than their individual coverages
Ans: Stan and his neighbors are not eligible to purchase group life
insurance because a group cannot be formed solely to obtain life
insurance
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With respect to the difference between variable life insurance (VLI)
and variable universal life insurance (VUL), which of the following
statements is correct?
Variable life policies require a fixed premium payable for the life of
the policy while variable universal life permits premium flexibility.
Only variable life policies allow the policyowner to put funds in
investment subaccounts.
Only variable universal life policies offer a minimum death benefit.
Only variable universal life is a securities product.
Ans: Variable life policies require a fixed premium payable for the life of
the policy while variable universal life permits premium flexibility
Jessica, age 25, buys a $100,00 life insurance policy. The initial
premium is lower than straight whole life rates and increases each
year for the first ten years of the policy period. After that, the
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premium levels off and remains at that amount for the life of the
policy. What type of policy does Jessica own?
indeterminate premium whole life
single premium life
graded premium whole life
20-pay life
Ans: graded premium whole life
Which statement about modified premium whole life insurance is
NOT correct?
It does not build cash value.
It charges lower premiums in the early policy years.
At the end of the initial period, the premium increases and stays at
the new level for the life of the policy.
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It is good for people who want the guarantees of whole life
insurance and lower early premiums.
Ans: It does not build a cash value
A life insurance policy matures or endows when its guaranteed cash
value equals its face amount. With an endowment contract, when
does the policy endow?
when the insured dies
at age 120
after age 120
well before age 120, usually at age 65
Ans: well before age 120, usually at age 65
WebCE Exam Tutor Questions and
Correct Answers/ Latest Update /
Already Graded
All of the following are eligible to purchase a group life insurance
policy EXCEPT:
the Wonderful Widget Company, which employs more than 200
people
the State Electrical Workers Union
the Retailers Multiple Employer Trust, formed by two retailers to
purchase insurance for their employees
Stan and his neighbors, who form their own group to buy group
coverage at a lower cost than their individual coverages
Ans: Stan and his neighbors are not eligible to purchase group life
insurance because a group cannot be formed solely to obtain life
insurance
,2 | Page
With respect to the difference between variable life insurance (VLI)
and variable universal life insurance (VUL), which of the following
statements is correct?
Variable life policies require a fixed premium payable for the life of
the policy while variable universal life permits premium flexibility.
Only variable life policies allow the policyowner to put funds in
investment subaccounts.
Only variable universal life policies offer a minimum death benefit.
Only variable universal life is a securities product.
Ans: Variable life policies require a fixed premium payable for the life of
the policy while variable universal life permits premium flexibility
Jessica, age 25, buys a $100,00 life insurance policy. The initial
premium is lower than straight whole life rates and increases each
year for the first ten years of the policy period. After that, the
,3 | Page
premium levels off and remains at that amount for the life of the
policy. What type of policy does Jessica own?
indeterminate premium whole life
single premium life
graded premium whole life
20-pay life
Ans: graded premium whole life
Which statement about modified premium whole life insurance is
NOT correct?
It does not build cash value.
It charges lower premiums in the early policy years.
At the end of the initial period, the premium increases and stays at
the new level for the life of the policy.
, 4 | Page
It is good for people who want the guarantees of whole life
insurance and lower early premiums.
Ans: It does not build a cash value
A life insurance policy matures or endows when its guaranteed cash
value equals its face amount. With an endowment contract, when
does the policy endow?
when the insured dies
at age 120
after age 120
well before age 120, usually at age 65
Ans: well before age 120, usually at age 65
