WISE CERTIFICATION CERTIFICATION
EVALUATION SET 2026 COMPLETE QUESTIONS
AND ANSWERS
◉ over insured. Answer: refers to having more insurance coverage
beyond what is necessary; paying too much for insurance premiums
◉ policy. Answer: in terms of insurance, it is the document
(contract) that outlines the terms and conditions for your insurance
coverage
◉ premium. Answer: the amount you pay to have insurance for a
specific period of time (i.e., 6 months or one year); typically paid on
a monthly, semi-annual, or annual basis
◉ renter's insurance. Answer: a type of insurance that can protect
you from damage or loss of your items in a rental property
◉ risk. Answer: the probability or chance of threat, damage, injury,
liability, or loss that may result in significant financial losses
,◉ term life insurance. Answer: most basic life insurance purchased
for a specific length of time (term) between 10 - 30 year but without
cash value; death benefit only
◉ under insured. Answer: refers to lacking insurance coverage; not
enough coverage for risks
◉ unemployment insurance. Answer: a source of income for
workers who have lost their jobs through no fault of their own;
legally required to be provided by employers
◉ universal life. Answer: provides a death benefit and a cash value,
does not expire, and is more flexible than whole life; policyholder
chooses how much of premium goes to death benefit and how much
to cash value
◉ variable life. Answer: does not expire; policyholder can take part
in different investment options; riskier than whole life, but can grow
larger cash values
◉ whole life insurance. Answer: the premium is locked in for your
whole life and does not expire; accumulates a cash value that can be
borrowed against (as in an investment)
, ◉ 1040. Answer: a tax form filled out by an individual and filed with
the IRS that determines the amount of income tax owed in a single
year
◉ 1040EZ. Answer: a tax form, similar to the 1040, filled out by an
individual and filed with the IRS that determines the amount of
income tax owed to the IRS in a single year; simpler form
◉ 1099. Answer: a series of documents used to report miscellaneous
income, such as interest earned on savings, dividends from the sale
of stocks, or government payments
◉ capital gains tax. Answer: a tax charged on the profits made on the
sale of something that was purchased at a lower price, typically
stocks or bonds and property (investments)
◉ deductions. Answer: the allocations or expenses removed from a
gross pay before the paycheck is delivered to the earner
◉ excise tax. Answer: also known as a luxury tax or sin tax; hidden
into the price of an item for airline tickets, hotel rooms, gas,
cigarettes, and alcohol
◉ exemption / allowance. Answer: a deduction allowed by law to
reduce the amount of income that would otherwise be taxed
EVALUATION SET 2026 COMPLETE QUESTIONS
AND ANSWERS
◉ over insured. Answer: refers to having more insurance coverage
beyond what is necessary; paying too much for insurance premiums
◉ policy. Answer: in terms of insurance, it is the document
(contract) that outlines the terms and conditions for your insurance
coverage
◉ premium. Answer: the amount you pay to have insurance for a
specific period of time (i.e., 6 months or one year); typically paid on
a monthly, semi-annual, or annual basis
◉ renter's insurance. Answer: a type of insurance that can protect
you from damage or loss of your items in a rental property
◉ risk. Answer: the probability or chance of threat, damage, injury,
liability, or loss that may result in significant financial losses
,◉ term life insurance. Answer: most basic life insurance purchased
for a specific length of time (term) between 10 - 30 year but without
cash value; death benefit only
◉ under insured. Answer: refers to lacking insurance coverage; not
enough coverage for risks
◉ unemployment insurance. Answer: a source of income for
workers who have lost their jobs through no fault of their own;
legally required to be provided by employers
◉ universal life. Answer: provides a death benefit and a cash value,
does not expire, and is more flexible than whole life; policyholder
chooses how much of premium goes to death benefit and how much
to cash value
◉ variable life. Answer: does not expire; policyholder can take part
in different investment options; riskier than whole life, but can grow
larger cash values
◉ whole life insurance. Answer: the premium is locked in for your
whole life and does not expire; accumulates a cash value that can be
borrowed against (as in an investment)
, ◉ 1040. Answer: a tax form filled out by an individual and filed with
the IRS that determines the amount of income tax owed in a single
year
◉ 1040EZ. Answer: a tax form, similar to the 1040, filled out by an
individual and filed with the IRS that determines the amount of
income tax owed to the IRS in a single year; simpler form
◉ 1099. Answer: a series of documents used to report miscellaneous
income, such as interest earned on savings, dividends from the sale
of stocks, or government payments
◉ capital gains tax. Answer: a tax charged on the profits made on the
sale of something that was purchased at a lower price, typically
stocks or bonds and property (investments)
◉ deductions. Answer: the allocations or expenses removed from a
gross pay before the paycheck is delivered to the earner
◉ excise tax. Answer: also known as a luxury tax or sin tax; hidden
into the price of an item for airline tickets, hotel rooms, gas,
cigarettes, and alcohol
◉ exemption / allowance. Answer: a deduction allowed by law to
reduce the amount of income that would otherwise be taxed
