WISCONSIN LIFE INSURANCE EXAM
Any person who violates an insurance statute or rule of Wisconsin can be fined up to:
(hint: enough for vacation for two to the Maldives) - Answers :$10,000
The Federal Fair Credit Reporting Act: - Answers :Regulates consumer reports
The Federal Fair Credit Reporting Act: A) Prevents money laundering B) Regulates
Consumer reports C) Protects customer privacy D) Regulates telemarketing - Answers
:Regulates consumer reports
What is the main purpose of the Seven-pay Test? (hint: MAIN = MEC)
A) It requires level premium payments WRONG
B) It ensures that the policy benefits WRONG
C) It guarantees the minimum WRONG
D) It determines if the insurance policy is a MEC - Answers :It determines if the
insurance policy is a MEC
When a beneficiary receives payments consisting of both principal and interest portions,
which parts are taxable as income? - Answers :Interest only
All of the following are duties and responsibilities of producers at the time of application
EXCEPT: (hint: 3 make sense, one doesn't)
A. Check to make sure that there are no unanswered questions on the application. (all
answers must be answered)
B. Change any incorrect statement on the application by personally initialing next to the
corrected statement.
C. Explain the nature and type of any receipt the producer is giving to the applicant.
(explanation for what they are signing)
D. Probe beyond the stated questions if the producer feels the applicant is
misrepresenting or concealing information. (misrepresentation) - Answers :B. Change
any incorrect statement on the application by personally initialing next to the corrected
statement.
Which of the following would provide an underwriter with information concerning an
applicant's health history? (hint: two of these do not include medical in the phrase
therefore those two are wrong. Medical = health)
A) The inspection report
B) The Medical Information Bureau
C) A medical examination
D) The agent's report - Answers :The medical information bureau
Which of the following is FALSE regarding the life insurance replacement rules? (hint:
the answer starts with replacement
A) The existing insurer must be notified of the proposed replacement transaction within
5 business days
, B) Replacement forms must be kept on file for 7 years
C) Replacement policies must have a 30 day free lock. - Answers :Replacement forms
must be kept on file for 7 years
Who can make changes to the policy once it is in effect? (hint: they have a "high" title)
A) The agent
B) An executive officer of the insurer
C) The insured
D_ The policyowner - Answers :An executive officer of the insurer
Which of the following is NOT true of Section 1035 Policy Exchanges? (hint: days) -
Answers :Any exchange made under Section 1035 of the Internal Revenue Code must
be completed within 30 days.
The clause that protects the proceeds of a life insurance policy from creditors after the
death of the insured is known as the: (hint: death = old people = old people like to thrift)
- Answers :Spendthrift clause
If a deferred annuity is surrendered prematurely, a surrender charge is imposed. How is
the surrender charge determined? - Answers :It is a percentage of the cash value and
decreases over time
For how long is an insurance company allowed to defer policy loan requests? (hint:
months) - Answers :6 months
What form of the annuity settlement options provides payments to an annuitant for the
rest of the annuitant's life and ceases at the annuitant's death? (hint this is a water
brand) - Answers :Pure Life
During a life insurance policy replacement, the insurer is required to provide the
policyowner a free-lock period of at least: - Answers :30 days
When replacing a policy an insurer must maintain a file containing copies of statements
for: - Answers :5 years
Which Universal Life option has a gradually increasing cash value and a level of death
benefit? (Hint: Bottom of the alphabet, gradual = starting point and go up from there A-
Z) - Answers :Option A
The type of term insurance that provides increasing death benefits as the insured ages
is called: (hint: as you age your number is increasing) - Answers :Increasing term
If a beneficiary wants a guarantee that benefits paid from principal and interest would be
paid for a period of 10 years before being exhausted, what settlement option should the
beneficiary select?
A) Interest Only
Any person who violates an insurance statute or rule of Wisconsin can be fined up to:
(hint: enough for vacation for two to the Maldives) - Answers :$10,000
The Federal Fair Credit Reporting Act: - Answers :Regulates consumer reports
The Federal Fair Credit Reporting Act: A) Prevents money laundering B) Regulates
Consumer reports C) Protects customer privacy D) Regulates telemarketing - Answers
:Regulates consumer reports
What is the main purpose of the Seven-pay Test? (hint: MAIN = MEC)
A) It requires level premium payments WRONG
B) It ensures that the policy benefits WRONG
C) It guarantees the minimum WRONG
D) It determines if the insurance policy is a MEC - Answers :It determines if the
insurance policy is a MEC
When a beneficiary receives payments consisting of both principal and interest portions,
which parts are taxable as income? - Answers :Interest only
All of the following are duties and responsibilities of producers at the time of application
EXCEPT: (hint: 3 make sense, one doesn't)
A. Check to make sure that there are no unanswered questions on the application. (all
answers must be answered)
B. Change any incorrect statement on the application by personally initialing next to the
corrected statement.
C. Explain the nature and type of any receipt the producer is giving to the applicant.
(explanation for what they are signing)
D. Probe beyond the stated questions if the producer feels the applicant is
misrepresenting or concealing information. (misrepresentation) - Answers :B. Change
any incorrect statement on the application by personally initialing next to the corrected
statement.
Which of the following would provide an underwriter with information concerning an
applicant's health history? (hint: two of these do not include medical in the phrase
therefore those two are wrong. Medical = health)
A) The inspection report
B) The Medical Information Bureau
C) A medical examination
D) The agent's report - Answers :The medical information bureau
Which of the following is FALSE regarding the life insurance replacement rules? (hint:
the answer starts with replacement
A) The existing insurer must be notified of the proposed replacement transaction within
5 business days
, B) Replacement forms must be kept on file for 7 years
C) Replacement policies must have a 30 day free lock. - Answers :Replacement forms
must be kept on file for 7 years
Who can make changes to the policy once it is in effect? (hint: they have a "high" title)
A) The agent
B) An executive officer of the insurer
C) The insured
D_ The policyowner - Answers :An executive officer of the insurer
Which of the following is NOT true of Section 1035 Policy Exchanges? (hint: days) -
Answers :Any exchange made under Section 1035 of the Internal Revenue Code must
be completed within 30 days.
The clause that protects the proceeds of a life insurance policy from creditors after the
death of the insured is known as the: (hint: death = old people = old people like to thrift)
- Answers :Spendthrift clause
If a deferred annuity is surrendered prematurely, a surrender charge is imposed. How is
the surrender charge determined? - Answers :It is a percentage of the cash value and
decreases over time
For how long is an insurance company allowed to defer policy loan requests? (hint:
months) - Answers :6 months
What form of the annuity settlement options provides payments to an annuitant for the
rest of the annuitant's life and ceases at the annuitant's death? (hint this is a water
brand) - Answers :Pure Life
During a life insurance policy replacement, the insurer is required to provide the
policyowner a free-lock period of at least: - Answers :30 days
When replacing a policy an insurer must maintain a file containing copies of statements
for: - Answers :5 years
Which Universal Life option has a gradually increasing cash value and a level of death
benefit? (Hint: Bottom of the alphabet, gradual = starting point and go up from there A-
Z) - Answers :Option A
The type of term insurance that provides increasing death benefits as the insured ages
is called: (hint: as you age your number is increasing) - Answers :Increasing term
If a beneficiary wants a guarantee that benefits paid from principal and interest would be
paid for a period of 10 years before being exhausted, what settlement option should the
beneficiary select?
A) Interest Only
