WFG License Exam (Life, Insurance, Accident): Exam Questions
and Answers with Verified Solutions | Latest 2026 Update
Q: insurance
Answer:
contract whereby one undertakes to idemnify [restore before loss] another against
loss, damage, liability from contingency [unknown/ unplanned events]
indemnify
Q: Give Example.
Answer:
restore person to some financial position before loss has occurred
to make someone whole
EX: If someone passes, that lost of income is covered by life insurance (percentage
of what is covered depends on plan of insurance purchased before incident)
Q: contingency
Answer:
unknown/ unplanned events
Q: what does insurance protect against before loss is done?
Answer:
loss damage liability from unplanned/ unknown events
Q: insurable interest
Answer:
necessary for insurance to be LEGAL, insurance is voided without
policy owner must have insurable INTEREST at time of application
can NOT be FORCED or insurance will be voided
Q: representation
Answer:
statements made by a person on an application for life insurance that are believed
to be true to the best of one's knowledge
the only time it can be withdrawn is before the insurance is in effect (usually 5-8
weeks AFTER signing)
, NOT warranty
Q: How long does policy owner have to withdraw any representation made on
application of life insurance?
- 5-8 weeks AFTER signing
utmost good faith
Answer:
principle
mutual agreement
each party is entitled to rely on each other's representation with expectation that
each is acting in good faith without attempts to deceive or conceal
fiduciary
Q: Give Examples.
Answer:
person in position of trust
relationship between trustee and beneficiary
if a licensed agent is a fiduciary, must have higher standard of conduct (more
responsibility)
EX: The company has fiduciary duty to shareholders
EX: Agent/ producer has a fiduciary obligation to act in the best interest of the
insured
EX: Policy holder entrusts form of payment for insurance's premium to agent to
submit immediately to insurer
Q: aleatory
Answer:
uncertainty, by chance, unpredictable
Q: what type of contract is insurance? Why?
Answer:
aleatory
...because performance of this contract is based on an uncertain future event that
may or may not happen and parties involved don't have to perform until that
specific event take place.
EX. of event: death
and Answers with Verified Solutions | Latest 2026 Update
Q: insurance
Answer:
contract whereby one undertakes to idemnify [restore before loss] another against
loss, damage, liability from contingency [unknown/ unplanned events]
indemnify
Q: Give Example.
Answer:
restore person to some financial position before loss has occurred
to make someone whole
EX: If someone passes, that lost of income is covered by life insurance (percentage
of what is covered depends on plan of insurance purchased before incident)
Q: contingency
Answer:
unknown/ unplanned events
Q: what does insurance protect against before loss is done?
Answer:
loss damage liability from unplanned/ unknown events
Q: insurable interest
Answer:
necessary for insurance to be LEGAL, insurance is voided without
policy owner must have insurable INTEREST at time of application
can NOT be FORCED or insurance will be voided
Q: representation
Answer:
statements made by a person on an application for life insurance that are believed
to be true to the best of one's knowledge
the only time it can be withdrawn is before the insurance is in effect (usually 5-8
weeks AFTER signing)
, NOT warranty
Q: How long does policy owner have to withdraw any representation made on
application of life insurance?
- 5-8 weeks AFTER signing
utmost good faith
Answer:
principle
mutual agreement
each party is entitled to rely on each other's representation with expectation that
each is acting in good faith without attempts to deceive or conceal
fiduciary
Q: Give Examples.
Answer:
person in position of trust
relationship between trustee and beneficiary
if a licensed agent is a fiduciary, must have higher standard of conduct (more
responsibility)
EX: The company has fiduciary duty to shareholders
EX: Agent/ producer has a fiduciary obligation to act in the best interest of the
insured
EX: Policy holder entrusts form of payment for insurance's premium to agent to
submit immediately to insurer
Q: aleatory
Answer:
uncertainty, by chance, unpredictable
Q: what type of contract is insurance? Why?
Answer:
aleatory
...because performance of this contract is based on an uncertain future event that
may or may not happen and parties involved don't have to perform until that
specific event take place.
EX. of event: death
