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Life insurance exam questions WI
Questions and Answers (100% Correct
Answers) Already Graded A+
What is the purpose of the Wisconsin State Life Insurance Fund?
a) to offer low-cost life insurance to state residents
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b) To protect insured against insolvent insurers
c) To advertise different types of life insurance policies available in
the state
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d) To provide life insurance through licensed intermediaries—Ans:
a
An employee is insured under her employer's group life plan. If she
terminates her group coverage, which of the following statements
is INCORRECT?
a) The premium for individual coverage will be based upon the
insured's attained age
b) The insured may choose to convert to term or permanent
individual coverage
c) The insured would not need to prove insurability for a
conversion policy
d) The insured may convert coverage to an individual policy
within 31 days—Ans: b
During a life insurance policy replacement, the insurer is required
to provide the policyowner a free-look period of at least
a) 10 days
, 2
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b) 20 days
c) 30 days
d) 90 days—Ans: c
Which of the following named beneficiaries would NOT be able to
receive the death benefit directly from the insurer in the event of
the insureds' death?
a) the former wife of the deceased insured
b) a minor son of the insured
c) a business partner of the insured
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d) the wife of the deceased insured—Ans: b
All of the following statements concerning the use of life insurance
as an Executive Bonus are correct EXCEPT
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a) The policy is owned by the company
b) Any type of insurance policy may be used
c) The employer pays a bonus to a selected employee to fund the
policy
d) It is considered a nonqualified employee benefit—Ans: a
Which of the following is NOT true regarding policy loans?
a) Policy loans can be repaid at death
b) an insurer can charge interest on outstanding policy loans
c) a policy loan may be repaid after the policy is surrendered
d) Money borrowed from the cash value is taxable—Ans: d
A 60-year-old participant in a 401(k) plan takes a distribution and
rolls it over to an IRA within 60 days. Which of the following is true?
, 3
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a) The amount of the distribution is reduced by the amount of a
20% withholding tax
b) No taxes are due since the plan participant is over age 59 1/2
c) There is a 10% early withdrawal penalty
d) The amount distributed is subject to ordinary income tax—Ans:
a
All of the following are true regarding the guaranteed insurability
rider EXCEPT
a) this rider is available to all insureds with no additional premium
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b) The insured may purchase additional coverage at the attained
age
c) The insured may purchase additional insurance up to the
amount specified in the base policy
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d) It allows the insured to purchase additional amounts of
insurance without providing insurability only at specified dates or
events—Ans: a
A claimant, whi is totally and permanently disabled, is eligible for
Social Security Disability benefits after an elimination period of
a) 24 months
b) 0 months
c) 5 months
d) 12 months—Ans: c
In a case where the primary beneficiary predeceases the insured,
in the event of the insured's death, the death benefit proceeds will
be paid to
a) the policy owner
b) the insurance company
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c) The contingent beneficiary
d) the insured's spouse—Ans: c
All of the following are beneficiary designations EXCEPT
a) Contingent
b) primary
c) specified
d) tertiary—Ans: c
If the owner of a whole life policy who is also the insured dies at
age 80, and there are no outstanding loans on the policy, what
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portion of the death benefit will be paid to the beneficiary?
a) 50% of the death benefit
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b) the face amount minus the premiums that would have been
collected until the insured reached the age of 100
c) a full death benefit
d) a death benefit equal to the cash value of the policy—Ans: c
What type of account will most likely be established for a minor?
a) Trust
b) Annuity
c) Credit life
d) Estate planning—Ans: a
The interest earned on policy dividends is
a) non taxable
b) tax deductible
c) 40% taxable, similar to a capital gain
For Expert help and assignment solutions, +254707240657
Life insurance exam questions WI
Questions and Answers (100% Correct
Answers) Already Graded A+
What is the purpose of the Wisconsin State Life Insurance Fund?
a) to offer low-cost life insurance to state residents
© 2025 Assignment Expert
b) To protect insured against insolvent insurers
c) To advertise different types of life insurance policies available in
the state
Guru01 - Stuvia
d) To provide life insurance through licensed intermediaries—Ans:
a
An employee is insured under her employer's group life plan. If she
terminates her group coverage, which of the following statements
is INCORRECT?
a) The premium for individual coverage will be based upon the
insured's attained age
b) The insured may choose to convert to term or permanent
individual coverage
c) The insured would not need to prove insurability for a
conversion policy
d) The insured may convert coverage to an individual policy
within 31 days—Ans: b
During a life insurance policy replacement, the insurer is required
to provide the policyowner a free-look period of at least
a) 10 days
, 2
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b) 20 days
c) 30 days
d) 90 days—Ans: c
Which of the following named beneficiaries would NOT be able to
receive the death benefit directly from the insurer in the event of
the insureds' death?
a) the former wife of the deceased insured
b) a minor son of the insured
c) a business partner of the insured
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d) the wife of the deceased insured—Ans: b
All of the following statements concerning the use of life insurance
as an Executive Bonus are correct EXCEPT
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a) The policy is owned by the company
b) Any type of insurance policy may be used
c) The employer pays a bonus to a selected employee to fund the
policy
d) It is considered a nonqualified employee benefit—Ans: a
Which of the following is NOT true regarding policy loans?
a) Policy loans can be repaid at death
b) an insurer can charge interest on outstanding policy loans
c) a policy loan may be repaid after the policy is surrendered
d) Money borrowed from the cash value is taxable—Ans: d
A 60-year-old participant in a 401(k) plan takes a distribution and
rolls it over to an IRA within 60 days. Which of the following is true?
, 3
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a) The amount of the distribution is reduced by the amount of a
20% withholding tax
b) No taxes are due since the plan participant is over age 59 1/2
c) There is a 10% early withdrawal penalty
d) The amount distributed is subject to ordinary income tax—Ans:
a
All of the following are true regarding the guaranteed insurability
rider EXCEPT
a) this rider is available to all insureds with no additional premium
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b) The insured may purchase additional coverage at the attained
age
c) The insured may purchase additional insurance up to the
amount specified in the base policy
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d) It allows the insured to purchase additional amounts of
insurance without providing insurability only at specified dates or
events—Ans: a
A claimant, whi is totally and permanently disabled, is eligible for
Social Security Disability benefits after an elimination period of
a) 24 months
b) 0 months
c) 5 months
d) 12 months—Ans: c
In a case where the primary beneficiary predeceases the insured,
in the event of the insured's death, the death benefit proceeds will
be paid to
a) the policy owner
b) the insurance company
, 4
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c) The contingent beneficiary
d) the insured's spouse—Ans: c
All of the following are beneficiary designations EXCEPT
a) Contingent
b) primary
c) specified
d) tertiary—Ans: c
If the owner of a whole life policy who is also the insured dies at
age 80, and there are no outstanding loans on the policy, what
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portion of the death benefit will be paid to the beneficiary?
a) 50% of the death benefit
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b) the face amount minus the premiums that would have been
collected until the insured reached the age of 100
c) a full death benefit
d) a death benefit equal to the cash value of the policy—Ans: c
What type of account will most likely be established for a minor?
a) Trust
b) Annuity
c) Credit life
d) Estate planning—Ans: a
The interest earned on policy dividends is
a) non taxable
b) tax deductible
c) 40% taxable, similar to a capital gain
