WFG QUESTIONS AND ANSWERS
What is the purpose of the buyer's guide? - Answers -@To allow the consumer to
compare the costs of different policies.
Which of the following is NOT true regarding policy loans? - Answers -@Money
borrowed from the cash value is taxable.
Your client wants both protection and savings from the insurance, and is willing to pay
premiums until retirement at age 65. What would be the right policy for this client? -
Answers -@Limited pay whole life
Which of the following statements about a suicide clause in a life insurance policy is
TRUE? - Answers -@Suicide is excluded for a specific period of years and covered
thereafter.
In insurance, an offer is usually made when - Answers -@An applicant submits an
application to the insurer.
All of the following are characteristics of group life insurance EXCEPT - Answers -
@Premiums are determined by the age, sex and occupation of each individual
certificate holder.
Which of the following statements is TRUE concerning irrevocable beneficiaries? -
Answers -@They can be changed only with the written consent of that beneficiary.
An insurer that holds a Certificate of Authority in the state in which it transacts business
is considered a/an - Answers -@Authorized insurer
Which nonforfeiture option provides coverage for the longest period of time? - Answers
-@Reduced Paid-Up
Which of the following settlement options in life insurance is known as straight life? -
Answers -@Life income
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 - Answers -@The contingent
beneficiary
Which of the following is another term for the accumulation period of an annuity? -
Answers -@Pay-in period
Under an extended term nonforfeiture option, the policy cash value is converted to -
Answers -@The same face amount as in the whole life policy
, All of the following are TRUE regarding the convertibility option under a term life
insurance policy EXCEPT - Answers -@Upon conversion, the death benefit of the
permanent policy will be reduced by 50%
Which two terms are associated directly with the way an annuity is funded? - Answers -
@Single payment or periodic payments
The Illinois Life and Health Insurance Guaranty Association is obligated to pay covered
claims only if under the amount of - Answers -@300,000
What must an insurer present to a prospective policy purchaser before the initial
premium paid? - Answers -@Buyer's Guide
What are the general duties of the Director of Insurance? - Answers -@1. Make rules to
implement the insurance code 2. Conduct investigations 3. Enforce Illinois insurance
laws
A producer whose license is revoked or whose application for a license is denied will be
ineligible to reapply for any license for at least - Answers -@3 years
According to the life insurance replacement regulations, which of the following would be
an example of policy replacement? - Answers -@A policy is reissued with a reduction in
cash value
An inducement offered to the insured in the sale of an insurance policy that is not
specified in the policy is an unlawful practice known as - Answers -@Rebating
Of the following persons which one would be required to hold a producer's license? -
Answers -@Person soliciting policies of Insurance
Which of the following describes the tax advantage of a qualified retirement plan? -
Answers -@The earnings in the plan accumulate tax deferred
Which of the following statements about a suicide clause in a life insurance policy is
TRUE? - Answers -@Suicide is excluded for a specific period of years and covered
thereafter.
An agent and an applicant for a life insurance policy fill out and sign the application.
However, the applicant does not wish to give the agent the initial premium, and no
conditional receipt is issued. When will coverage begin? - Answers -@When the agent
delivers the policy, collects the initial premium, and the applicant completes an
acceptable Statement of Good Health
The type of policy that can be changed from one that does not accumulate cash value
to the one that does is a - Answers -@convertible term policy
What is the purpose of the buyer's guide? - Answers -@To allow the consumer to
compare the costs of different policies.
Which of the following is NOT true regarding policy loans? - Answers -@Money
borrowed from the cash value is taxable.
Your client wants both protection and savings from the insurance, and is willing to pay
premiums until retirement at age 65. What would be the right policy for this client? -
Answers -@Limited pay whole life
Which of the following statements about a suicide clause in a life insurance policy is
TRUE? - Answers -@Suicide is excluded for a specific period of years and covered
thereafter.
In insurance, an offer is usually made when - Answers -@An applicant submits an
application to the insurer.
All of the following are characteristics of group life insurance EXCEPT - Answers -
@Premiums are determined by the age, sex and occupation of each individual
certificate holder.
Which of the following statements is TRUE concerning irrevocable beneficiaries? -
Answers -@They can be changed only with the written consent of that beneficiary.
An insurer that holds a Certificate of Authority in the state in which it transacts business
is considered a/an - Answers -@Authorized insurer
Which nonforfeiture option provides coverage for the longest period of time? - Answers
-@Reduced Paid-Up
Which of the following settlement options in life insurance is known as straight life? -
Answers -@Life income
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 - Answers -@The contingent
beneficiary
Which of the following is another term for the accumulation period of an annuity? -
Answers -@Pay-in period
Under an extended term nonforfeiture option, the policy cash value is converted to -
Answers -@The same face amount as in the whole life policy
, All of the following are TRUE regarding the convertibility option under a term life
insurance policy EXCEPT - Answers -@Upon conversion, the death benefit of the
permanent policy will be reduced by 50%
Which two terms are associated directly with the way an annuity is funded? - Answers -
@Single payment or periodic payments
The Illinois Life and Health Insurance Guaranty Association is obligated to pay covered
claims only if under the amount of - Answers -@300,000
What must an insurer present to a prospective policy purchaser before the initial
premium paid? - Answers -@Buyer's Guide
What are the general duties of the Director of Insurance? - Answers -@1. Make rules to
implement the insurance code 2. Conduct investigations 3. Enforce Illinois insurance
laws
A producer whose license is revoked or whose application for a license is denied will be
ineligible to reapply for any license for at least - Answers -@3 years
According to the life insurance replacement regulations, which of the following would be
an example of policy replacement? - Answers -@A policy is reissued with a reduction in
cash value
An inducement offered to the insured in the sale of an insurance policy that is not
specified in the policy is an unlawful practice known as - Answers -@Rebating
Of the following persons which one would be required to hold a producer's license? -
Answers -@Person soliciting policies of Insurance
Which of the following describes the tax advantage of a qualified retirement plan? -
Answers -@The earnings in the plan accumulate tax deferred
Which of the following statements about a suicide clause in a life insurance policy is
TRUE? - Answers -@Suicide is excluded for a specific period of years and covered
thereafter.
An agent and an applicant for a life insurance policy fill out and sign the application.
However, the applicant does not wish to give the agent the initial premium, and no
conditional receipt is issued. When will coverage begin? - Answers -@When the agent
delivers the policy, collects the initial premium, and the applicant completes an
acceptable Statement of Good Health
The type of policy that can be changed from one that does not accumulate cash value
to the one that does is a - Answers -@convertible term policy
