Life Insurance Exam – Wisconsin Exam 2024/2025 Questions with 100% Verified Answers

Life Insurance Exam – Wisconsin Exam 2024/2025 Questions with 100% Verified Answers Accelerated Living Benefit Rider - Allows the insured to receive a portion of the death benefit prior to death if the insured has a terminal illness Accidental Death and Dismemberment (AD&D) - Pays a lump sum payment if the insured dies in an accident, or loses major body parts in an accident Accumulation at Interest - Allows the insurer to retain the dividend to be invested and grow in value- The policyowner can withdraw the dividend at will tax-free, but any interest earned on the dividend is taxable Accumulation Phase - When you put money in- makes premium payments into the annuity- the premium makes interest Adverse Selection - The tendency for poorer than average risks to seek out insurance Aleatory contract - There is an unequal exchange of value. One party has the potential to receive more benefit than the other Annuity - Annuities protect against the risk of living longer than expected. Annuities provide a guaranteed life income to protect against the risk of depleting retirement funds Annuity Certain - Does not guarantee a life income. Instead, it provides income for a fixed time period, such as 10 or 15 years. An annuity certain has a distinct beginning and end- doesn't guarantee life income Annuity Phase - When you get money paid back to you- payments are made monthly, quarterly, semiannually, and annually Apparent Authority - Is a situation in which the insurer gives the customer a reasonable belief that an agent has the power and authority to bind the principal, even in cases where the agent does not have such authority Assignment Clause - Transfers ownership of the policy to another person, but does not change the name insured or the face amount Automatic premium loan (APL) - Insurer takes cash value to pay premium