Life Insurance Exam – Wisconsin Questions With Complete
Solutions
Accelerated Living Benefit Rider Correct Answers Allows the
insured to receive a portion of the death benefit prior to death if
the insured has a terminal illness
Accidental Death and Dismemberment (AD&D) Correct
Answers Pays a lump sum payment if the insured dies in an
accident, or loses major body parts in an accident
Accumulation at Interest Correct Answers Allows the insurer to
retain the dividend to be invested and grow in value- The
policyowner can withdraw the dividend at will tax-free, but any
interest earned on the dividend is taxable
Accumulation Phase Correct Answers When you put money in-
makes premium payments into the annuity- the premium makes
interest
Adverse Selection Correct Answers The tendency for poorer
than average risks to seek out insurance
Aleatory contract Correct Answers There is an unequal
exchange of value. One party has the potential to receive more
benefit than the other
Annuity Certain Correct Answers Does not guarantee a life
income. Instead, it provides income for a fixed time period, such
as 10 or 15 years. An annuity certain has a distinct beginning
and end- doesn't guarantee life income
, Annuity Correct Answers Annuities protect against the risk of
living longer than expected. Annuities provide a guaranteed life
income to protect against the risk of depleting retirement funds
Annuity Phase Correct Answers When you get money paid
back to you- payments are made monthly, quarterly,
semiannually, and annually
Apparent Authority Correct Answers Is a situation in which the
insurer gives the customer a reasonable belief that an agent has
the power and authority to bind the principal, even in cases
where the agent does not have such authority
Assignment Clause Correct Answers Transfers ownership of the
policy to another person, but does not change the name insured
or the face amount
Automatic premium loan (APL) Correct Answers Insurer takes
cash value to pay premium
Cash Payment Correct Answers With the cash payment option,
the policyowner receives a check for the amount of the dividend
Cash Refund Annuity Correct Answers With the cash refund
option the annuitant will receive income for life, and upon the
annuitant's death, the beneficiary will receive the balance of
annuity funds- in a lump sum and is taxed
Solutions
Accelerated Living Benefit Rider Correct Answers Allows the
insured to receive a portion of the death benefit prior to death if
the insured has a terminal illness
Accidental Death and Dismemberment (AD&D) Correct
Answers Pays a lump sum payment if the insured dies in an
accident, or loses major body parts in an accident
Accumulation at Interest Correct Answers Allows the insurer to
retain the dividend to be invested and grow in value- The
policyowner can withdraw the dividend at will tax-free, but any
interest earned on the dividend is taxable
Accumulation Phase Correct Answers When you put money in-
makes premium payments into the annuity- the premium makes
interest
Adverse Selection Correct Answers The tendency for poorer
than average risks to seek out insurance
Aleatory contract Correct Answers There is an unequal
exchange of value. One party has the potential to receive more
benefit than the other
Annuity Certain Correct Answers Does not guarantee a life
income. Instead, it provides income for a fixed time period, such
as 10 or 15 years. An annuity certain has a distinct beginning
and end- doesn't guarantee life income
, Annuity Correct Answers Annuities protect against the risk of
living longer than expected. Annuities provide a guaranteed life
income to protect against the risk of depleting retirement funds
Annuity Phase Correct Answers When you get money paid
back to you- payments are made monthly, quarterly,
semiannually, and annually
Apparent Authority Correct Answers Is a situation in which the
insurer gives the customer a reasonable belief that an agent has
the power and authority to bind the principal, even in cases
where the agent does not have such authority
Assignment Clause Correct Answers Transfers ownership of the
policy to another person, but does not change the name insured
or the face amount
Automatic premium loan (APL) Correct Answers Insurer takes
cash value to pay premium
Cash Payment Correct Answers With the cash payment option,
the policyowner receives a check for the amount of the dividend
Cash Refund Annuity Correct Answers With the cash refund
option the annuitant will receive income for life, and upon the
annuitant's death, the beneficiary will receive the balance of
annuity funds- in a lump sum and is taxed
