Life Insurance Exam – Wisconsin
Questions with 100% Correct Answers
Mortality - ✔✔The rate people will die
Morbidity - ✔✔The rate people will get sick
Peril - ✔✔The cause of loss and the event insured against.
Ex: premature death, dependency during old age, accident, and sickness
Adverse Selection - ✔✔The tendency for poorer than average risks to seek
out insurance
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
Lloyds Associations - ✔✔Described as a market where individuals and
groups gather to exchange insurance, much like stock exchanges provide a
place to buy, sell and trade stocks
Risk Retention Groups - ✔✔Llimited liability companies or member-owned
corporations that collectively assume and spread their members' liability
risks through self-insurance. All members of a risk retention group must be
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©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, employed in similar types of businesses so that they have similar liability
exposures
Express Authority - ✔✔The explicit authority granted to the agent by the
principal as written in the agency contract
Implied Authority - ✔✔Not specifically expressed by the principal to the
agent in the agency contract, but is implicit in the agent's duties
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
Fair Credit Reporting Act (FCRA) - ✔✔The Act requires consumer-
reporting agencies to implement policies and procedures to preserve the
confidentiality, accuracy, relevance, and appropriate utilization of
consumer's private credit information
What cannot be in a consumer report unless for a life insurance policy of
$150,000 or more: - ✔✔-Bankruptcies dating back more than 10 years
-Civil suits and judgments dating back more than seven years or cases in
which the statute of limitations has expired, whichever period is longer
-Tax liens dating back more than seven years
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©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Questions with 100% Correct Answers
Mortality - ✔✔The rate people will die
Morbidity - ✔✔The rate people will get sick
Peril - ✔✔The cause of loss and the event insured against.
Ex: premature death, dependency during old age, accident, and sickness
Adverse Selection - ✔✔The tendency for poorer than average risks to seek
out insurance
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
Lloyds Associations - ✔✔Described as a market where individuals and
groups gather to exchange insurance, much like stock exchanges provide a
place to buy, sell and trade stocks
Risk Retention Groups - ✔✔Llimited liability companies or member-owned
corporations that collectively assume and spread their members' liability
risks through self-insurance. All members of a risk retention group must be
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, employed in similar types of businesses so that they have similar liability
exposures
Express Authority - ✔✔The explicit authority granted to the agent by the
principal as written in the agency contract
Implied Authority - ✔✔Not specifically expressed by the principal to the
agent in the agency contract, but is implicit in the agent's duties
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
Fair Credit Reporting Act (FCRA) - ✔✔The Act requires consumer-
reporting agencies to implement policies and procedures to preserve the
confidentiality, accuracy, relevance, and appropriate utilization of
consumer's private credit information
What cannot be in a consumer report unless for a life insurance policy of
$150,000 or more: - ✔✔-Bankruptcies dating back more than 10 years
-Civil suits and judgments dating back more than seven years or cases in
which the statute of limitations has expired, whichever period is longer
-Tax liens dating back more than seven years
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
