WEBCE Practice Exam 100 questions
with answers
In general, what is the earliest age at which a person can take a distribution from a
qualified plan without a tax penalty? - .......ANSWERS 🔷🖊✔✔59 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: - .......ANSWERS
🔷🖊✔✔statutory minimum withholding requirements
What kind of misrepresentation on an insurance application gives the insurer reason
to terminate a policy? - .......ANSWERS 🔷🖊✔✔material 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? - .......ANSWERS 🔷🖊
✔✔disability income benefit rider
In calculating their life insurance premiums, which of the following statements
generally guides insurance companies in determining the "loading" factor?
- .......ANSWERS 🔷🖊✔✔Total 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? - .......ANSWERS 🔷🖊✔✔the 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: - .......ANSWERS 🔷🖊✔✔a 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: - .......ANSWERS 🔷🖊✔✔his 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?
- .......ANSWERS 🔷🖊✔✔variable 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: - .......ANSWERS 🔷🖊✔✔net future earnings discounted to a present
value
Which one of the following statements about Multiple Employer Welfare
Arrangements (MEWAs) is most correct? - .......ANSWERS 🔷🖊✔✔They are usually
created by employers in the same industry.
Which of the following best describes income payments under the period certain
payout option? - .......ANSWERS 🔷🖊✔✔the 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? - .......ANSWERS 🔷🖊✔✔a policy
Margie owns a fixed life insurance policy. What type of death benefit is Margie
guaranteed? - .......ANSWERS 🔷🖊✔✔The policy guarantees a fixed amount.
What is the minimum grace period required for payment on an annuity?
- .......ANSWERS 🔷🖊✔✔30 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? - .......ANSWERS 🔷🖊✔✔an
irrevocable beneficiary
with answers
In general, what is the earliest age at which a person can take a distribution from a
qualified plan without a tax penalty? - .......ANSWERS 🔷🖊✔✔59 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: - .......ANSWERS
🔷🖊✔✔statutory minimum withholding requirements
What kind of misrepresentation on an insurance application gives the insurer reason
to terminate a policy? - .......ANSWERS 🔷🖊✔✔material 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? - .......ANSWERS 🔷🖊
✔✔disability income benefit rider
In calculating their life insurance premiums, which of the following statements
generally guides insurance companies in determining the "loading" factor?
- .......ANSWERS 🔷🖊✔✔Total 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? - .......ANSWERS 🔷🖊✔✔the 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: - .......ANSWERS 🔷🖊✔✔a 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: - .......ANSWERS 🔷🖊✔✔his 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?
- .......ANSWERS 🔷🖊✔✔variable 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: - .......ANSWERS 🔷🖊✔✔net future earnings discounted to a present
value
Which one of the following statements about Multiple Employer Welfare
Arrangements (MEWAs) is most correct? - .......ANSWERS 🔷🖊✔✔They are usually
created by employers in the same industry.
Which of the following best describes income payments under the period certain
payout option? - .......ANSWERS 🔷🖊✔✔the 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? - .......ANSWERS 🔷🖊✔✔a policy
Margie owns a fixed life insurance policy. What type of death benefit is Margie
guaranteed? - .......ANSWERS 🔷🖊✔✔The policy guarantees a fixed amount.
What is the minimum grace period required for payment on an annuity?
- .......ANSWERS 🔷🖊✔✔30 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? - .......ANSWERS 🔷🖊✔✔an
irrevocable beneficiary
