Wisconsin Life Insurance Exam | 165 Questions with 100% Correct Answers | Verified | Latest Update
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
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
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
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 59
1/2
c) There is a 10% early withdrawal penalty
d) The amount distributed is subject to ordinary income tax
Correct answer: a
Question : All of the following are true regarding the
guaranteed insurability rider EXCEPT
- this rider is available to all insureds with no additional
premium
b) The insured may purchase additional coverage at the
attained age