WI LIFE INSURANCE EXAM/ NEWEST WI LIFE
INSURANCE EXAM ACTUAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS LATEST UPDATES
2025-2026 (100% VERIFIED ANSWERS) ALREADY
GRADED A+
What happens when a policy is surrendered for its cash value?
a) coverage ends but the policy can be reinstated at any time
b) the policy can be reinstated by paying back all policy loans and premiums
c) the policy can be converted to term coverage
d) coverage ends and the policy cannot be reinstated - ANSWER-d
Which of the following describes the tax advantage of a qualified retirement plan?
a) employer contributions are not taxed when paid out to an employee
b) the earnings in the plan accumulate tax deferred
c) distributions prior to age 59 1/2 are tax deductible
d) employer contributions are deductible as a business expense when the
employee receives benefits - ANSWER-b
A married couple owns a permanent policy which covers both of their lives and
pays the death benefit only upon the death of the insured. Which policy is that?
a) second-to-die
b) family income policy
,c) joint life policy
d) survivorship life policy - ANSWER-c
An insurer wants to begin underwriting procedures for an applicant. What source
will it consult for the majority of its underwriting information?
a) interviews
b) state records
c) medical records
d) application - ANSWER-d
Which of the following is NOT true regarding the needs approach method of
determining the value of an individual's life?
a) it must be assumed that the death of the insured will occur immediately
b) need is predicted using the number of years until the insured's retirement
c) coverage is based on the predicted needs of that family
d) the death of an insured must be premature - ANSWER-b
In a fixed annuity, which of the following is true regarding the guaranteed interest
rate on the investment?
a) the annuitant will receive the higher of either the guaranteed minimum rate or
current rate
b) the annuitant will always receive the current interest rate
c) the annuitant will receive the lower of either the guaranteed minimum rate or
current rate
d) the annuitant will only receive the guaranteed minimum specified in the
contract - ANSWER-a
What kind of policy allows withdrawals or partial surrenders?
a) 20-pay life
b) term policy
c) variable whole life
d) universal life - ANSWER-d
,What is the purpose of the Wisconsin State Life Insurance Fund?
a) to offer low-cost life insurance to state residents
b) To protect insured against insolvent insurers
c) To advertise different types of life insurance policies available in the state
d) To provide life insurance through licensed intermediaries - ANSWER-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 -
ANSWER-b
During a life insurance policy replacement, the insurer is required to provide the
policy owner a free-look period of at least
a) 10 days
b) 20 days
c) 30 days
d) 90 days - ANSWER-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
d) the wife of the deceased insured - ANSWER-b
All of the following statements concerning the use of life insurance as an
Executive Bonus are correct EXCEPT
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 - ANSWER-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 - ANSWER-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?
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 - ANSWER-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
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
d) It allows the insured to purchase additional amounts of insurance without
providing insurability only at specified dates or events - ANSWER-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 - ANSWER-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
c) The contingent beneficiary
d) the insured's spouse - ANSWER-c
All of the following are beneficiary designations EXCEPT
INSURANCE EXAM ACTUAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS LATEST UPDATES
2025-2026 (100% VERIFIED ANSWERS) ALREADY
GRADED A+
What happens when a policy is surrendered for its cash value?
a) coverage ends but the policy can be reinstated at any time
b) the policy can be reinstated by paying back all policy loans and premiums
c) the policy can be converted to term coverage
d) coverage ends and the policy cannot be reinstated - ANSWER-d
Which of the following describes the tax advantage of a qualified retirement plan?
a) employer contributions are not taxed when paid out to an employee
b) the earnings in the plan accumulate tax deferred
c) distributions prior to age 59 1/2 are tax deductible
d) employer contributions are deductible as a business expense when the
employee receives benefits - ANSWER-b
A married couple owns a permanent policy which covers both of their lives and
pays the death benefit only upon the death of the insured. Which policy is that?
a) second-to-die
b) family income policy
,c) joint life policy
d) survivorship life policy - ANSWER-c
An insurer wants to begin underwriting procedures for an applicant. What source
will it consult for the majority of its underwriting information?
a) interviews
b) state records
c) medical records
d) application - ANSWER-d
Which of the following is NOT true regarding the needs approach method of
determining the value of an individual's life?
a) it must be assumed that the death of the insured will occur immediately
b) need is predicted using the number of years until the insured's retirement
c) coverage is based on the predicted needs of that family
d) the death of an insured must be premature - ANSWER-b
In a fixed annuity, which of the following is true regarding the guaranteed interest
rate on the investment?
a) the annuitant will receive the higher of either the guaranteed minimum rate or
current rate
b) the annuitant will always receive the current interest rate
c) the annuitant will receive the lower of either the guaranteed minimum rate or
current rate
d) the annuitant will only receive the guaranteed minimum specified in the
contract - ANSWER-a
What kind of policy allows withdrawals or partial surrenders?
a) 20-pay life
b) term policy
c) variable whole life
d) universal life - ANSWER-d
,What is the purpose of the Wisconsin State Life Insurance Fund?
a) to offer low-cost life insurance to state residents
b) To protect insured against insolvent insurers
c) To advertise different types of life insurance policies available in the state
d) To provide life insurance through licensed intermediaries - ANSWER-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 -
ANSWER-b
During a life insurance policy replacement, the insurer is required to provide the
policy owner a free-look period of at least
a) 10 days
b) 20 days
c) 30 days
d) 90 days - ANSWER-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
d) the wife of the deceased insured - ANSWER-b
All of the following statements concerning the use of life insurance as an
Executive Bonus are correct EXCEPT
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 - ANSWER-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 - ANSWER-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?
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 - ANSWER-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
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
d) It allows the insured to purchase additional amounts of insurance without
providing insurability only at specified dates or events - ANSWER-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 - ANSWER-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
c) The contingent beneficiary
d) the insured's spouse - ANSWER-c
All of the following are beneficiary designations EXCEPT
