WEBCE Practice Exam Questions With 100% Correct Answers

WEBCE Practice Exam Questions With 100% Correct Answers In general, what is the earliest age at which a person can take a distribution from a qualified plan without a tax penalty? - answer59 1/2 Carol was 35 when she bought her deferred annuity. Now, at age 38, she wants to withdraw funds from the contract to take a vacation. Carol is likely to encounter all of the following consequences in making the withdrawal EXCEPT: - answerstatutory minimum withholding requirements What kind of misrepresentation on an insurance application gives the insurer reason to terminate a policy? - answermaterial fact Which of the following riders attached to Debra's life insurance policy provides for a monthly income to be paid if she becomes disabled? - answerdisability income benefit rider In calculating their life insurance premiums, which of the following statements generally guides insurance companies in determining the "loading" factor? - answerTotal loading from all policies should cover total operating costs, provide a safety margin, and contribute to profits or surplus. What is the main difference between ordinary whole life and limited payment whole life insurance? - answerthe length of time that the insured must pay premiums Abby lives in New Mexico, where she is licensed as an insurance agent and wants to apply for a nonresident license in Arizona. She holds a current license in good standing in New Mexico. When applying for a license in Arizona, Abby must prove her citizenship by submitting: - answera valid driver's license Matt takes out a life insurance policy on himself to protect his family. Matt's insurance company may consider all of the following when underwriting his policy EXCEPT: - answerhis race Under which of the following do the cash values and death benefits rise and fall on the basis of the policy's subaccount investment performance, and for which the insurer does not guarantee a rate of return on the cash value invested? - answervariable life To help determine how much life insurance a prospect needs, agent Smith uses the human life value approach which is essentially based on an estimate of the prospect's: - answernet future earnings discounted to a present value Which one of the following statements about Multiple Employer Welfare Arrangements (MEWAs) is most correct? - answerThey are usually created by employers in the same industry. Which of the following best describes income payments under the period certain payout option? - answerthe longer the payout period, the smaller the amount of each monthly payment Delta Co. buys a group life insurance policy for its employees. As the plan sponsor, what will Delta receive? - answera policy Margie owns a fixed life insurance policy. What type of death benefit is Margie guaranteed? - answerThe policy guarantees a fixed amount. What is the minimum grace period required for payment on an annuity? - answer30 days Which one of the following has more than "an expectancy" that he or she will receive the death benefit under a life insurance policy? - answeran irrevocable beneficiary An agent for ABC Insurance Company meets with a client. The agent shows the client ABC's sample policies, refers to the ABC rate book, and gives the client an ABC business card. The client assumes that ABC has appointed the agent to represent it. What kind of authority does the agent have? - answerapparent authority Which statement about variable annuity subaccounts is NOT correct? - answerThe insurer selects the variable subaccounts to which the contract owner's premiums are allocated. Stephanie is hired by ABC Insurance Company's home office. She does not have an insurance producer's license. Which of the following duties may she perform for ABC? - answermail company correspondence for the president The life insurance nonforfeiture option that results in the permanent continuation of cash value life insurance with no further premiums is called the: - answerreduced paid-up option A life insurance policy may accelerate payment of the death benefit for any of the following reasons EXCEPT: - answerpartial, temporary disability The formal name for what is commonly called a 'double indemnity' rider is: - answeraccidental death benefit ri