WISCONSIN LIFE INSURANCE EXAM 2025 |160 QUESTIONS
WITH ACCURATE SOLUTIONS
1. For a plan to be a "qualified" retirement plan, it must meet all the
following requirements except which of the following?
The plan can discriminate in favor of the highly compensated
employees.
The plan must be created for the exclusive benefit of the
employees or their beneficiaries.
There is a minimum vesting requirement which must be met with
respect to employee and employer contributions.
The plan must meet certain participation and coverage
requirements.
2. Describe the significance of vesting requirements in relation to employer
contributions to qualified plans.
Vesting requirements dictate the amount of tax owed on
contributions.
Vesting requirements are only applicable to employee
contributions, not employer contributions.
Vesting requirements determine the employee's right to the
employer's contributions after a certain period of service.
Vesting requirements allow employees to withdraw funds
immediately upon contribution.
3. Describe how taxation on accumulation differs between qualified and
nonqualified retirement plans.
,Qualified plans are taxed at a higher rate on accumulation than
nonqualified plans.
Both types of plans have the same tax treatment on accumulation.
, Nonqualified plans do not allow for tax-deferred accumulation.
Qualified plans have tax-deferred accumulation, while
nonqualified plans may have different tax treatments.
4. If an individual is considering retirement planning, how might the choice
between a qualified and nonqualified retirement plan impact their tax
strategy?
It would only affect their contribution limits.
It would have no impact on their tax strategy.
It would only impact their eligibility for IRS approval.
It could affect their tax liabilities during accumulation and
distribution phases.
5. Which of the following would be true of both the fixed-period and fixed-
amount settlement options?
The amount of payments is based on the recipient's life
expectancy.
The size of installments decreases after certain period of time
Both guarantee that the principal and interest will be fully paid
out
Both guarantee payments for the life of the beneficiary
6. If a person violates an order specifically issued to him or her, that person
may be required to pay a fine up to
$2,000
$1,000
$3,000
$1,500
, 7. What settlement option guarantees benefits for a specified period before
being exhausted?
Interest only
Life annuity
Fixed period
Variable period
Life with period certain
8. Which of the following would be considered discrimination?
An insurance company charges women lower premiums than men
because women generally live longer.
An insurance company decides to increase the premium charge
on life insurance policies issued to non-Catholics because of
difference in beliefs.
A life insurance company charges obese people a higher premium
when it can prove actuarially that obese people have a greater
risk for heart disease and will therefore die sooner than others.
A person who works as a race car driver has a higher life
insurance premium than that of his neighbor who is an insurance
agent.
9. Which type of life insurance policy allows the policyowner to pay more
or less than the planned premium? (Hint: the answer starts with a word
that also means inclusive).
Decreasing term
Straight whole life
Variable life
Universal life
WITH ACCURATE SOLUTIONS
1. For a plan to be a "qualified" retirement plan, it must meet all the
following requirements except which of the following?
The plan can discriminate in favor of the highly compensated
employees.
The plan must be created for the exclusive benefit of the
employees or their beneficiaries.
There is a minimum vesting requirement which must be met with
respect to employee and employer contributions.
The plan must meet certain participation and coverage
requirements.
2. Describe the significance of vesting requirements in relation to employer
contributions to qualified plans.
Vesting requirements dictate the amount of tax owed on
contributions.
Vesting requirements are only applicable to employee
contributions, not employer contributions.
Vesting requirements determine the employee's right to the
employer's contributions after a certain period of service.
Vesting requirements allow employees to withdraw funds
immediately upon contribution.
3. Describe how taxation on accumulation differs between qualified and
nonqualified retirement plans.
,Qualified plans are taxed at a higher rate on accumulation than
nonqualified plans.
Both types of plans have the same tax treatment on accumulation.
, Nonqualified plans do not allow for tax-deferred accumulation.
Qualified plans have tax-deferred accumulation, while
nonqualified plans may have different tax treatments.
4. If an individual is considering retirement planning, how might the choice
between a qualified and nonqualified retirement plan impact their tax
strategy?
It would only affect their contribution limits.
It would have no impact on their tax strategy.
It would only impact their eligibility for IRS approval.
It could affect their tax liabilities during accumulation and
distribution phases.
5. Which of the following would be true of both the fixed-period and fixed-
amount settlement options?
The amount of payments is based on the recipient's life
expectancy.
The size of installments decreases after certain period of time
Both guarantee that the principal and interest will be fully paid
out
Both guarantee payments for the life of the beneficiary
6. If a person violates an order specifically issued to him or her, that person
may be required to pay a fine up to
$2,000
$1,000
$3,000
$1,500
, 7. What settlement option guarantees benefits for a specified period before
being exhausted?
Interest only
Life annuity
Fixed period
Variable period
Life with period certain
8. Which of the following would be considered discrimination?
An insurance company charges women lower premiums than men
because women generally live longer.
An insurance company decides to increase the premium charge
on life insurance policies issued to non-Catholics because of
difference in beliefs.
A life insurance company charges obese people a higher premium
when it can prove actuarially that obese people have a greater
risk for heart disease and will therefore die sooner than others.
A person who works as a race car driver has a higher life
insurance premium than that of his neighbor who is an insurance
agent.
9. Which type of life insurance policy allows the policyowner to pay more
or less than the planned premium? (Hint: the answer starts with a word
that also means inclusive).
Decreasing term
Straight whole life
Variable life
Universal life
