Life insurance exam questions WI WITH
400 QUESTIONS PLUS AND CORRECT
WITH VERRIFFIED ANSWERS 2025-2026
,What is the purpose of the Wisconsin State Life Insurance Fund?
a) to offer low-cost life insurance to state residents
b) To protect insured against insolvent insurers
c) To advertise different types of life insurance policies available in the state
d) To provide life insurance through licensed intermediaries - CORRECT ANSWERS-a
An employee is insured under her employer's group life plan. If she terminates her
group coverage, which of the following statements is INCORRECT?
a) The premium for individual coverage will be based upon the insured's attained age
b) The insured may choose to convert to term or permanent individual coverage
c) The insured would not need to prove insurability for a conversion policy
d) The insured may convert coverage to an individual policy within 31 days - CORRECT
ANSWERS-b
During a life insurance policy replacement, the insurer is required to provide the
policyowner a free-look period of at least
a) 10 days
b) 20 days
c) 30 days
d) 90 days - CORRECT ANSWERS-c
,Which of the following named beneficiaries would NOT be able to receive the death
benefit directly from the insurer in the event of the insureds' death?
a) the former wife of the deceased insured
b) a minor son of the insured
c) a business partner of the insured
d) the wife of the deceased insured - CORRECT ANSWERS-b
All of the following statements concerning the use of life insurance as an Executive
Bonus are correct EXCEPT
a) The policy is owned by the company
b) Any type of insurance policy may be used
c) The employer pays a bonus to a selected employee to fund the policy
d) It is considered a nonqualified employee benefit - CORRECT ANSWERS-a
Which of the following is NOT true regarding policy loans?
a) Policy loans can be repaid at death
b) an insurer can charge interest on outstanding policy loans
c) a policy loan may be repaid after the policy is surrendered
d) Money borrowed from the cash value is taxable - CORRECT ANSWERS-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 - CORRECT ANSWERS-a
, All of the following are true regarding the guaranteed insurability rider EXCEPT
a) this rider is available to all insureds with no additional premium
b) The insured may purchase additional coverage at the attained age
c) The insured may purchase additional insurance up to the amount specified in the
base policy
d) It allows the insured to purchase additional amounts of insurance without providing
insurability only at specified dates or events - CORRECT ANSWERS-a
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 - CORRECT ANSWERS-c
In a case where the primary beneficiary predeceases the insured, in the event of the
insured's death, the death benefit proceeds will be paid to
a) the policy owner
b) the insurance company
c) The contingent beneficiary
d) the insured's spouse - CORRECT ANSWERS-c
All of the following are beneficiary designations EXCEPT
a) Contingent
b) primary
c) specified
d) tertiary - CORRECT ANSWERS-c
400 QUESTIONS PLUS AND CORRECT
WITH VERRIFFIED ANSWERS 2025-2026
,What is the purpose of the Wisconsin State Life Insurance Fund?
a) to offer low-cost life insurance to state residents
b) To protect insured against insolvent insurers
c) To advertise different types of life insurance policies available in the state
d) To provide life insurance through licensed intermediaries - CORRECT ANSWERS-a
An employee is insured under her employer's group life plan. If she terminates her
group coverage, which of the following statements is INCORRECT?
a) The premium for individual coverage will be based upon the insured's attained age
b) The insured may choose to convert to term or permanent individual coverage
c) The insured would not need to prove insurability for a conversion policy
d) The insured may convert coverage to an individual policy within 31 days - CORRECT
ANSWERS-b
During a life insurance policy replacement, the insurer is required to provide the
policyowner a free-look period of at least
a) 10 days
b) 20 days
c) 30 days
d) 90 days - CORRECT ANSWERS-c
,Which of the following named beneficiaries would NOT be able to receive the death
benefit directly from the insurer in the event of the insureds' death?
a) the former wife of the deceased insured
b) a minor son of the insured
c) a business partner of the insured
d) the wife of the deceased insured - CORRECT ANSWERS-b
All of the following statements concerning the use of life insurance as an Executive
Bonus are correct EXCEPT
a) The policy is owned by the company
b) Any type of insurance policy may be used
c) The employer pays a bonus to a selected employee to fund the policy
d) It is considered a nonqualified employee benefit - CORRECT ANSWERS-a
Which of the following is NOT true regarding policy loans?
a) Policy loans can be repaid at death
b) an insurer can charge interest on outstanding policy loans
c) a policy loan may be repaid after the policy is surrendered
d) Money borrowed from the cash value is taxable - CORRECT ANSWERS-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 - CORRECT ANSWERS-a
, All of the following are true regarding the guaranteed insurability rider EXCEPT
a) this rider is available to all insureds with no additional premium
b) The insured may purchase additional coverage at the attained age
c) The insured may purchase additional insurance up to the amount specified in the
base policy
d) It allows the insured to purchase additional amounts of insurance without providing
insurability only at specified dates or events - CORRECT ANSWERS-a
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 - CORRECT ANSWERS-c
In a case where the primary beneficiary predeceases the insured, in the event of the
insured's death, the death benefit proceeds will be paid to
a) the policy owner
b) the insurance company
c) The contingent beneficiary
d) the insured's spouse - CORRECT ANSWERS-c
All of the following are beneficiary designations EXCEPT
a) Contingent
b) primary
c) specified
d) tertiary - CORRECT ANSWERS-c
