WISCONSIN LIFE INSURANCE EXAM 2025|170 QUESTIONS
WITH ACCURATE SOLUTIONS
1. If a policyowner decides to exercise the Free-Look Provision after
realizing the policy does not meet their needs, what financial impact does
this have on their premium payments?
They receive a full refund of the premium paid.
They can only receive a refund if they switch to another policy.
They must pay an additional fee to cancel the policy.
They lose a portion of the premium as a penalty.
2. Describe how the Human Life Value approach influences the
determination of life insurance coverage.
It calculates the future earnings of an individual to establish the
necessary life insurance face amount.
It evaluates the market value of the individual's property for
insurance purposes.
It focuses on the individual's health status to determine insurance
needs.
It considers only the current expenses of an individual to set
insurance limits.
3. What is one requirement for employees to enroll in a retirement plan
under ERISA participation standards?
Employees must be at least 18 years old.
Employees must have reached age 21 and completed one year
of service.
Employees must have worked for at least five years.
,Employees must have a college degree.
,4. The State Guaranty Association guarantees
that a claim will be paid if an insurer becomes insolvent
that dividends will be paid
that a policy will be issued
the rate of return on a policy
5. A catch-up 401(k) contribution:
Allows employers to achieve their Target contributions
Allows participants of at least 50 years of age to make
additional contribution of $7500 per year
Allows participants of at least 62 years of age to make additional
contribution of $7500 per year
Allows employers to catch up in Profit Sharing contributions
6. If a company has a retirement plan that requires employees to work for
two years before becoming 100% vested, how does this align with ERISA
participation standards?
It aligns as long as employees can enroll after reaching age 21
and completing one year of service.
It does not align because employees must be vested immediately
upon enrollment.
It does not align because employees must work for five years
before enrollment.
It aligns only if the company is a government entity.
7. Describe the concept of insurable interest and its significance in
insurance policies.
Insurable interest allows anyone to purchase insurance on any
individual or property without restrictions.
, Insurable interest is only applicable to life insurance policies and
not to property insurance.
Insurable interest is a concept that applies only to businesses and
not to individuals.
Insurable interest refers to the requirement that the
policyholder must have a legitimate interest in the life or
property insured, ensuring that the policyholder would suffer a
financial loss if the insured event occurs.
8. The settlement option which pays principal and interest until proceeds
are exhausted is called:
Interest only
Fixed premium option
Life with period certain option
Fixed amount option
9. If a policyholder passes away three years after purchasing a life insurance
policy, how does the Incontestable Clause affect the insurer's ability to
deny a claim?
The insurer can deny the claim if there was a misrepresentation in
the application.
The insurer can deny the claim if the policyholder was involved in
illegal activities.
The insurer can contest the claim if the policyholder missed
premium payments.
The insurer cannot deny the claim based on the validity of the
policy.
10. If an insurer attempts to change the terms of a policy after it has been
issued, which provision would protect the policyholder?
WITH ACCURATE SOLUTIONS
1. If a policyowner decides to exercise the Free-Look Provision after
realizing the policy does not meet their needs, what financial impact does
this have on their premium payments?
They receive a full refund of the premium paid.
They can only receive a refund if they switch to another policy.
They must pay an additional fee to cancel the policy.
They lose a portion of the premium as a penalty.
2. Describe how the Human Life Value approach influences the
determination of life insurance coverage.
It calculates the future earnings of an individual to establish the
necessary life insurance face amount.
It evaluates the market value of the individual's property for
insurance purposes.
It focuses on the individual's health status to determine insurance
needs.
It considers only the current expenses of an individual to set
insurance limits.
3. What is one requirement for employees to enroll in a retirement plan
under ERISA participation standards?
Employees must be at least 18 years old.
Employees must have reached age 21 and completed one year
of service.
Employees must have worked for at least five years.
,Employees must have a college degree.
,4. The State Guaranty Association guarantees
that a claim will be paid if an insurer becomes insolvent
that dividends will be paid
that a policy will be issued
the rate of return on a policy
5. A catch-up 401(k) contribution:
Allows employers to achieve their Target contributions
Allows participants of at least 50 years of age to make
additional contribution of $7500 per year
Allows participants of at least 62 years of age to make additional
contribution of $7500 per year
Allows employers to catch up in Profit Sharing contributions
6. If a company has a retirement plan that requires employees to work for
two years before becoming 100% vested, how does this align with ERISA
participation standards?
It aligns as long as employees can enroll after reaching age 21
and completing one year of service.
It does not align because employees must be vested immediately
upon enrollment.
It does not align because employees must work for five years
before enrollment.
It aligns only if the company is a government entity.
7. Describe the concept of insurable interest and its significance in
insurance policies.
Insurable interest allows anyone to purchase insurance on any
individual or property without restrictions.
, Insurable interest is only applicable to life insurance policies and
not to property insurance.
Insurable interest is a concept that applies only to businesses and
not to individuals.
Insurable interest refers to the requirement that the
policyholder must have a legitimate interest in the life or
property insured, ensuring that the policyholder would suffer a
financial loss if the insured event occurs.
8. The settlement option which pays principal and interest until proceeds
are exhausted is called:
Interest only
Fixed premium option
Life with period certain option
Fixed amount option
9. If a policyholder passes away three years after purchasing a life insurance
policy, how does the Incontestable Clause affect the insurer's ability to
deny a claim?
The insurer can deny the claim if there was a misrepresentation in
the application.
The insurer can deny the claim if the policyholder was involved in
illegal activities.
The insurer can contest the claim if the policyholder missed
premium payments.
The insurer cannot deny the claim based on the validity of the
policy.
10. If an insurer attempts to change the terms of a policy after it has been
issued, which provision would protect the policyholder?
