WEBCE Practice Exam 100 questions with complete solutions

In general, what is the earliest age at which a person can take a distribution from a qualified plan without a tax penalty? CORRECT ANSWERS: 59 1/2 Carol was 35 when she bought her deferred annuity. Now, at age 38, she wants to withdraw funds from the contract to take a vacation. Carol is likely to encounter all of the following consequences in making the withdrawal EXCEPT: CORRECT ANSWERS: statutory minimum withholding requirements What kind of misrepresentation on an insurance application gives the insurer reason to terminate a policy? CORRECT ANSWERS: material fact Which of the following riders attached to Debra's life insurance policy provides for a monthly income to be paid if she becomes disabled? CORRECT ANSWERS: disability income benefit rider In calculating their life insurance premiums, which of the following statements generally guides insurance companies in determining the "loading" factor? CORRECT ANSWERS: Total loading from all policies should cover total operating costs, provide a safety margin, and contribute to profits or surplus. What is the main difference between ordinary whole life and limited payment whole life insurance? CORRECT ANSWERS: the length of time that the insured must pay premiums Abby lives in New Mexico, where she is licensed 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: CORRECT ANSWERS: a valid driver's license Matt takes out a life insurance policy on himself to protect his family. Matt's insurance company may consider all of the following when underwriting his policy EXCEPT: CORRECT ANSWERS: his race Under which of the following do the cash values and death benefits rise and fall on the basis of the policy's subaccount investment performance, and for which the insurer does not guarantee a rate of return on the cash value invested? CORRECT ANSWERS: variable life To help determine how much life insurance a prospect needs, agent Smith uses the human life value approach which is essentially based on an estimate of the prospect's: CORRECT ANSWERS: net future earnings discounted to a present value Which one of the following statements about Multiple Employer We