WISCONSIN LIFE INSURANCE

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WISCONSIN LIFE INSURANCE

EXAM QUESTIONS WITH 100%

CORRECT ANSWERS

Question :What is the purpose of the Wisconsin State Life

Insurance Fund?

• 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 answer:a

Question :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

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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 answer:b

Question :During a life insurance policy replacement, the

insurer is required to provide the policyowner a free-look period of at least

• 10 days
• 20 days
• 30 days
• 90 days

Correct answer:c

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Question :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?

• the former wife of the deceased insured
• a minor son of the insured
• a business partner of the insured
• the wife of the deceased insured

Correct answer:b

Question :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 answer:a

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Question :Which of the following is NOT true regarding

policy loans?

a) Policy loans can be repaid at death

• an insurer can charge interest on outstanding policy

loans

• a policy loan may be repaid after the policy is

surrendered

d) Money borrowed from the cash value is taxable

Correct answer:d

Question :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

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