Life insurance exam questions
Wisconsin
All of the following information about a customer must be used in determining annuity suitability
EXCEPT
a) financial experience
b) annual income
c) beneficiary's age
d) tax status - c
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 - c
A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the
policy benefit, then
a) IRS has no jurisdiction
b) the benefit is received as taxable income
,c) the benefit is received tax-free
d) the benefit is subject to the exclusionary rule - c
A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that
the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this
change?
a) inflation rider
b) cost of living rider
c) value adjustment rider
d) return of premium rider - b
A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the
maximum age of dependent coverage, so she will have to convert to permanent insurance in the near
future. Which of the following will she need to provide for proof of insurability?
a) proof of insurability is not required
b) medical exam
c) her parents' federal income tax receipts
d) medical exam and parents' medical history - a
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 - c
,A policy may be issued for a term longer than one year or for an indefinite term as long as there is a
clause in the policy providing for cancellation by giving how much notice prior to the anniversary date? -
60 days
A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy.
She also wishes to retain all of the rights of ownership. The policyowner should have her husband
named as the
a) Revocable beneficiary
b) Secondary beneficiary
c) Contingent beneficiary
d) Irrevocable beneficiary - a
A producer is helping a married couple determine the financial needs of their children in the event one
or both should die prematurely. This is a personal use of life insurance known as
a) survivor protection
b) life planning
c) survivorship protection
d) juvenile protection provision - a
A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will
a) pay the policy proceeds up to an established unit
b) not pay the policy proceeds under any circumstances
c) automatically pay the policy proceeds
d) pay the policy proceeds only if it would have issued the policy - d
A provision in a life or health insurance policy that may assist an insurance company in determining the
cause of death of an insured is called
, a) attending physician's report
b) medical exam
c) autopsy
d) inspection - c
According to the entire contract provision, a policy must contain
a) a declarations page with a summary of insureds
b) Buyer's guide to life insurance
c) listing of the insured's former insurer(s) for incontestability provisions
d) a copy of the original application for insurance - 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 - a
All of the following are beneficiary designations EXCEPT
a) Contingent
b) primary
c) specified
d) tertiary - c
All of the following are characteristics of group life insurance EXCEPT
Wisconsin
All of the following information about a customer must be used in determining annuity suitability
EXCEPT
a) financial experience
b) annual income
c) beneficiary's age
d) tax status - c
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 - c
A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the
policy benefit, then
a) IRS has no jurisdiction
b) the benefit is received as taxable income
,c) the benefit is received tax-free
d) the benefit is subject to the exclusionary rule - c
A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that
the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this
change?
a) inflation rider
b) cost of living rider
c) value adjustment rider
d) return of premium rider - b
A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the
maximum age of dependent coverage, so she will have to convert to permanent insurance in the near
future. Which of the following will she need to provide for proof of insurability?
a) proof of insurability is not required
b) medical exam
c) her parents' federal income tax receipts
d) medical exam and parents' medical history - a
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 - c
,A policy may be issued for a term longer than one year or for an indefinite term as long as there is a
clause in the policy providing for cancellation by giving how much notice prior to the anniversary date? -
60 days
A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy.
She also wishes to retain all of the rights of ownership. The policyowner should have her husband
named as the
a) Revocable beneficiary
b) Secondary beneficiary
c) Contingent beneficiary
d) Irrevocable beneficiary - a
A producer is helping a married couple determine the financial needs of their children in the event one
or both should die prematurely. This is a personal use of life insurance known as
a) survivor protection
b) life planning
c) survivorship protection
d) juvenile protection provision - a
A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will
a) pay the policy proceeds up to an established unit
b) not pay the policy proceeds under any circumstances
c) automatically pay the policy proceeds
d) pay the policy proceeds only if it would have issued the policy - d
A provision in a life or health insurance policy that may assist an insurance company in determining the
cause of death of an insured is called
, a) attending physician's report
b) medical exam
c) autopsy
d) inspection - c
According to the entire contract provision, a policy must contain
a) a declarations page with a summary of insureds
b) Buyer's guide to life insurance
c) listing of the insured's former insurer(s) for incontestability provisions
d) a copy of the original application for insurance - 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 - a
All of the following are beneficiary designations EXCEPT
a) Contingent
b) primary
c) specified
d) tertiary - c
All of the following are characteristics of group life insurance EXCEPT
