WISCONSIN LIFE EXAM FX ASSESSMENT TEST
2026 TESTED QUESTIONS WITH FULL
SOLUTION GRADED A+
◉ The Federal Fair Credit Reporting Act: Answer: Regulates
consumer reports
◉ The Federal Fair Credit Reporting Act: A) Prevents money
laundering B) Regulates Consumer reports C) Protects customer
privacy D) Regulates telemarketing Answer: Regulates consumer
reports
◉ What form of the annuity settlement options provides payments
to an annuitant for the rest of the annuitant's life and ceases at the
annuitant's death? Answer: Pure Life
◉ During a life insurance policy replacement, the insurer is required
to provide the policyowner a free-lock period of at least: Answer: 30
days
◉ When replacing a policy an insurer must maintain a file
containing copies of statements for: Answer: 5 years
,◉ Which Universal Life option has a gradually increasing cash value
and a level of death benefit? Answer: Option A
◉ The type of term insurance that provides increasing death
benefits as the insured ages is called: Answer: Increasing term
◉ If a beneficiary wants a guarantee that benefits paid from
principal and interest would be paid for a period of 10 years before
being exhausted, what settlement option should the beneficiary
select?
A) Interest Only
B) Fixed Period
C) Life with period certain
D) Fixed amount Answer: Fixed period
◉ If a policy has an automatic premium loan provision, what
happens if the insured dies before the loan is paid back?
A) The policy beneficiary receives the FULL death benefit.
B) The balance of the loan will be TAKEN OUT of the death benefit
Answer: The balance of the loan will be taken out of the death
benefit
◉ Are insurance company underwriters allowed to discriminate?
A) No, discrimination is an unfair practice
,B) Yes, but no unfairly Answer: Yes, but not unfairly
◉ Which of the following riders added to a life insurance policy can
pay part of the death benefit ___ home? Answer: long-term care
◉ If a beneficiary wants a guarantee that benefits paid from
principal and interest would be paid for a period of 10 years before
being exhausted, what settlement option should the beneficiary
select?
A) Fixed period
B) Life with period certain Answer: Fixed period
◉ Which of the following settlement options in life insurance is
known as straight life?
A) Single life
B) Life with period certain
C) Fixed amount
D) Life income Answer: Life Income
◉ Annuities differ from life insurance in all of the following ways
EXCEPT
A) There is no stated amount of death benefit
B) They can be used in a qualified retirement plan
, C) The annuitant must be living to collect
D) They are purchased with premiums Answer: They are purchased
with premiums
◉ What is the main purpose of the Seven-pay Test?
A) It requires level premium payments
B) It ensures that the policy benefits
C) It guarantees the minimum
D) It determines if the insurance policy is a MEC Answer: It
determines if the insurance policy is a MEC
◉ When a beneficiary receives payments consisting of both principal
and interest portions, which parts are taxable as income? Answer:
Interest only
◉ All of the following are duties and responsibilities of producers at
the time of application EXCEPT:
A. Check to make sure that there are no unanswered questions on
the application.
B. Change any incorrect statement on the application by personally
initialing next to the corrected statement.
C. Explain the nature and type of any receipt the producer is giving
to the applicant
2026 TESTED QUESTIONS WITH FULL
SOLUTION GRADED A+
◉ The Federal Fair Credit Reporting Act: Answer: Regulates
consumer reports
◉ The Federal Fair Credit Reporting Act: A) Prevents money
laundering B) Regulates Consumer reports C) Protects customer
privacy D) Regulates telemarketing Answer: Regulates consumer
reports
◉ What form of the annuity settlement options provides payments
to an annuitant for the rest of the annuitant's life and ceases at the
annuitant's death? Answer: Pure Life
◉ During a life insurance policy replacement, the insurer is required
to provide the policyowner a free-lock period of at least: Answer: 30
days
◉ When replacing a policy an insurer must maintain a file
containing copies of statements for: Answer: 5 years
,◉ Which Universal Life option has a gradually increasing cash value
and a level of death benefit? Answer: Option A
◉ The type of term insurance that provides increasing death
benefits as the insured ages is called: Answer: Increasing term
◉ If a beneficiary wants a guarantee that benefits paid from
principal and interest would be paid for a period of 10 years before
being exhausted, what settlement option should the beneficiary
select?
A) Interest Only
B) Fixed Period
C) Life with period certain
D) Fixed amount Answer: Fixed period
◉ If a policy has an automatic premium loan provision, what
happens if the insured dies before the loan is paid back?
A) The policy beneficiary receives the FULL death benefit.
B) The balance of the loan will be TAKEN OUT of the death benefit
Answer: The balance of the loan will be taken out of the death
benefit
◉ Are insurance company underwriters allowed to discriminate?
A) No, discrimination is an unfair practice
,B) Yes, but no unfairly Answer: Yes, but not unfairly
◉ Which of the following riders added to a life insurance policy can
pay part of the death benefit ___ home? Answer: long-term care
◉ If a beneficiary wants a guarantee that benefits paid from
principal and interest would be paid for a period of 10 years before
being exhausted, what settlement option should the beneficiary
select?
A) Fixed period
B) Life with period certain Answer: Fixed period
◉ Which of the following settlement options in life insurance is
known as straight life?
A) Single life
B) Life with period certain
C) Fixed amount
D) Life income Answer: Life Income
◉ Annuities differ from life insurance in all of the following ways
EXCEPT
A) There is no stated amount of death benefit
B) They can be used in a qualified retirement plan
, C) The annuitant must be living to collect
D) They are purchased with premiums Answer: They are purchased
with premiums
◉ What is the main purpose of the Seven-pay Test?
A) It requires level premium payments
B) It ensures that the policy benefits
C) It guarantees the minimum
D) It determines if the insurance policy is a MEC Answer: It
determines if the insurance policy is a MEC
◉ When a beneficiary receives payments consisting of both principal
and interest portions, which parts are taxable as income? Answer:
Interest only
◉ All of the following are duties and responsibilities of producers at
the time of application EXCEPT:
A. Check to make sure that there are no unanswered questions on
the application.
B. Change any incorrect statement on the application by personally
initialing next to the corrected statement.
C. Explain the nature and type of any receipt the producer is giving
to the applicant
