Wisconsin Insurance Licensing Exam
Prep Newest 2026-2027. Questions
and Correct Answers. Graded A
A group-owned insurance company that is formed to assume and spread
the liability risks of its members is known as a
1. treaty insurer
2. risk retention group
3. risk assumption group
4. captive insurer - ANS2. Risk retention group
A hold-harmless clause is an example of risk
1. avoidance
2. retention
3. transfer
4. sharing - ANS3. transfer
A life policy that has premiums that are lower than normal during the early
years is called
1. decreasing term
2. modified life
3. variable life
4. limited-pay life - ANS2. modified life
1
,A policyowner is permitted to take out a policy loan on a whole life policy at
what point?
1. When the policy has a cash value
2. When the policy has been in force 2 years
3. When the cash value equals the face amount
4. When the policyowner has demonstrated financial need - ANS1. When
the policy has a cash value
A pure assessment mutual company - ANS-Operates based on loss-
sharing by group members
-No premium paid in advance
-Members take a portion of the losses that occurred
ABC Partnership is a business with a limited number of partners. Which
disability buy-sell agreement is best suited for this business?
1. Optional buy-back agreement
2. Entity purchase agreement
3. Cross purchase agreement
4. Organizational group agreement - ANS3. Cross purchase agreement
According to the Affordable Care Act, new Health Insurance Marketplaces
are established by the
1. ICIICO
2. CCIIOO
3. CCOII
4. CCIIO - ANS4. CCIIO
2
, Al surrenders his life insurance policy for its cash value. The total of
premiums paid into the policy minus total dividends received in cash or
used to offset premiums is referred to as the
1. premium basis
2. net proceeds
3. cash basis
4. cost basis - ANS4. cost basis
All of these are duties that a producer may be required to perform when
delivering an insurance policy EXCEPT
1. Acquire a statement of good health signature
2. Gather the initial premium
3. Review policy with applicant
4. Leave a conditional receipt with client - ANS4. Leave a conditional
receipt with client
All of these statements correctly describe an aleatory contract EXCEPT
1. A legal wager is considered an aleatory contract
2. Potential unequal exchange of value for both parties
3. Only one party makes any kind of legally enforceable offer
4. Element of chance is involved - ANS3. Only one party makes any kind of
legally enforceable offer
An advance premium assessment mutual - ANS-Charges a premium at the
beginning of the policy period
-If the premium exceeds the losses and operating expenses the difference
is returned as dividends
3
Prep Newest 2026-2027. Questions
and Correct Answers. Graded A
A group-owned insurance company that is formed to assume and spread
the liability risks of its members is known as a
1. treaty insurer
2. risk retention group
3. risk assumption group
4. captive insurer - ANS2. Risk retention group
A hold-harmless clause is an example of risk
1. avoidance
2. retention
3. transfer
4. sharing - ANS3. transfer
A life policy that has premiums that are lower than normal during the early
years is called
1. decreasing term
2. modified life
3. variable life
4. limited-pay life - ANS2. modified life
1
,A policyowner is permitted to take out a policy loan on a whole life policy at
what point?
1. When the policy has a cash value
2. When the policy has been in force 2 years
3. When the cash value equals the face amount
4. When the policyowner has demonstrated financial need - ANS1. When
the policy has a cash value
A pure assessment mutual company - ANS-Operates based on loss-
sharing by group members
-No premium paid in advance
-Members take a portion of the losses that occurred
ABC Partnership is a business with a limited number of partners. Which
disability buy-sell agreement is best suited for this business?
1. Optional buy-back agreement
2. Entity purchase agreement
3. Cross purchase agreement
4. Organizational group agreement - ANS3. Cross purchase agreement
According to the Affordable Care Act, new Health Insurance Marketplaces
are established by the
1. ICIICO
2. CCIIOO
3. CCOII
4. CCIIO - ANS4. CCIIO
2
, Al surrenders his life insurance policy for its cash value. The total of
premiums paid into the policy minus total dividends received in cash or
used to offset premiums is referred to as the
1. premium basis
2. net proceeds
3. cash basis
4. cost basis - ANS4. cost basis
All of these are duties that a producer may be required to perform when
delivering an insurance policy EXCEPT
1. Acquire a statement of good health signature
2. Gather the initial premium
3. Review policy with applicant
4. Leave a conditional receipt with client - ANS4. Leave a conditional
receipt with client
All of these statements correctly describe an aleatory contract EXCEPT
1. A legal wager is considered an aleatory contract
2. Potential unequal exchange of value for both parties
3. Only one party makes any kind of legally enforceable offer
4. Element of chance is involved - ANS3. Only one party makes any kind of
legally enforceable offer
An advance premium assessment mutual - ANS-Charges a premium at the
beginning of the policy period
-If the premium exceeds the losses and operating expenses the difference
is returned as dividends
3
