WFG TEST QUESTIONS AND ANSWERS
1. term insurance into permanent insurance- Answers - The conversion privilege allows a
terminating employee to convert
2. subtract the policy surrender charges- Answers - The adjustments that insurers make to the
cash value account in a universal life policy each time a payment is made includes all of the following EXCEPT
3. A single payment made to a taxpayer who is age 55- Answers - Which distribution from
an annuity would be subject to a penalty tax?
4. insured's estate- Answers - Creditors have rights to life insurance policy proceeds when the beneficiary is the
5. Variable life.- Answers - Which policy allows the insured to choose where the assets backing the cash value are
invested?
6. Insureds elect a dividend option at the time of policy purchase- Answers - Which of
the following statements about policy dividends is TRUE?
7. They are tax deductible by the employer.- Answers - Which statement is TRUE
regarding employer contributions to qualified plans?
8. The insurer and the employer- Answers - In a group life insurance policy, who are the parties to
the master contract?
9. extended term- Answers - Common life insurance policy riders include all of the following EXCEPT
10. policy summary description- Answers - Life insurers must include all of the following in their
financial state- ments EXCEPT
11. a higher premium is payable at each renewal- Answers - If a term life insurance policy is
renewable, the renewal provision usually states that- Answers -
12. taxable as income to the employee- Answers - The cost of employer-provided group life
insurance above
$50,000 is
13. The individuals depends on the other person for financial support- Answers -
When does an individual have an insurable interest in the life of another person?
1/
16
,14. income- Answers - In financial planning, the human life value concept is based on an individual's
15. The applicant and the agent- Answers - Who MUST sign a statement acknowledging that a life
insurance policy illustration was given to an applicant?
16. insureds can avoid answering medical questions on the application- Answers -
The use of non-medical life insurance accomplishes all of the following EXCEPT
17. double indemnity- Answers - The accidental benefit rider is also known as
18. Joint life policy- Answers - Which policy covering two or more individuals terminates after paying benefits on
the first to die?
2/
16
, 19. Buy-sell agreements- Answers - How can partners guarantee a market for their share of the business in
the event of death?
20. Second-to-die policy- Answers - A husband and wife have a disabled child who is financially dependent
upon them. The death of one parent would not result in financial disaster for the disabled child, but the death of both parents
would. Which policy should they purchase?
21. Endowment insurance- Answers - Which policy pays the face amount if the insured survives to the end of
a certain period?
22. number living at the end of designated year.- Answers - All of the following are contained in a
mortality table EXCEPT
23. allows the policyowner to receive a share of surplus in the form of
policy dividends- Answers - A participating life insurance policy is defined as a contract that
24. 10%- Answers - A group life policy is issued on a contributory basis. This means that the *insured employees will
pay part of the premium. 112.What is the penalty tax imposed on amounts received from a modified endowment
contract?
25. an unnecessary replacement- Answers - An insured replaces an exciting annuity with a new one
and must pay a surrender charge for cancelling the existing annuity. The new policy holds no greater financial benefits to
the insured than the existing contract. This is an example of
26. Suicide clause- Answers - Which policy provision protects the insurer against possible adverse selection?
27. Employee Stock Ownership Plan- Answers - What is an ESOP?
28. The free-look period begins on the policy delivery date- Answers - Why is the
delivery of a life insurance policy important?
29. non-medical.- Answers - Life insurance policies written without a physical examination are called
30. legally defined as a return of excess premium and not taxable- Answers - A life
insurance policy dividend is
31. face amount is paid if the insured survives to the end of the policy period-
Answers - All of the following are true about term life insurance policies EXCEPT the
3/
16
1. term insurance into permanent insurance- Answers - The conversion privilege allows a
terminating employee to convert
2. subtract the policy surrender charges- Answers - The adjustments that insurers make to the
cash value account in a universal life policy each time a payment is made includes all of the following EXCEPT
3. A single payment made to a taxpayer who is age 55- Answers - Which distribution from
an annuity would be subject to a penalty tax?
4. insured's estate- Answers - Creditors have rights to life insurance policy proceeds when the beneficiary is the
5. Variable life.- Answers - Which policy allows the insured to choose where the assets backing the cash value are
invested?
6. Insureds elect a dividend option at the time of policy purchase- Answers - Which of
the following statements about policy dividends is TRUE?
7. They are tax deductible by the employer.- Answers - Which statement is TRUE
regarding employer contributions to qualified plans?
8. The insurer and the employer- Answers - In a group life insurance policy, who are the parties to
the master contract?
9. extended term- Answers - Common life insurance policy riders include all of the following EXCEPT
10. policy summary description- Answers - Life insurers must include all of the following in their
financial state- ments EXCEPT
11. a higher premium is payable at each renewal- Answers - If a term life insurance policy is
renewable, the renewal provision usually states that- Answers -
12. taxable as income to the employee- Answers - The cost of employer-provided group life
insurance above
$50,000 is
13. The individuals depends on the other person for financial support- Answers -
When does an individual have an insurable interest in the life of another person?
1/
16
,14. income- Answers - In financial planning, the human life value concept is based on an individual's
15. The applicant and the agent- Answers - Who MUST sign a statement acknowledging that a life
insurance policy illustration was given to an applicant?
16. insureds can avoid answering medical questions on the application- Answers -
The use of non-medical life insurance accomplishes all of the following EXCEPT
17. double indemnity- Answers - The accidental benefit rider is also known as
18. Joint life policy- Answers - Which policy covering two or more individuals terminates after paying benefits on
the first to die?
2/
16
, 19. Buy-sell agreements- Answers - How can partners guarantee a market for their share of the business in
the event of death?
20. Second-to-die policy- Answers - A husband and wife have a disabled child who is financially dependent
upon them. The death of one parent would not result in financial disaster for the disabled child, but the death of both parents
would. Which policy should they purchase?
21. Endowment insurance- Answers - Which policy pays the face amount if the insured survives to the end of
a certain period?
22. number living at the end of designated year.- Answers - All of the following are contained in a
mortality table EXCEPT
23. allows the policyowner to receive a share of surplus in the form of
policy dividends- Answers - A participating life insurance policy is defined as a contract that
24. 10%- Answers - A group life policy is issued on a contributory basis. This means that the *insured employees will
pay part of the premium. 112.What is the penalty tax imposed on amounts received from a modified endowment
contract?
25. an unnecessary replacement- Answers - An insured replaces an exciting annuity with a new one
and must pay a surrender charge for cancelling the existing annuity. The new policy holds no greater financial benefits to
the insured than the existing contract. This is an example of
26. Suicide clause- Answers - Which policy provision protects the insurer against possible adverse selection?
27. Employee Stock Ownership Plan- Answers - What is an ESOP?
28. The free-look period begins on the policy delivery date- Answers - Why is the
delivery of a life insurance policy important?
29. non-medical.- Answers - Life insurance policies written without a physical examination are called
30. legally defined as a return of excess premium and not taxable- Answers - A life
insurance policy dividend is
31. face amount is paid if the insured survives to the end of the policy period-
Answers - All of the following are true about term life insurance policies EXCEPT the
3/
16
