WISCONSIN LIFE EXAM FX COMPREHENSIVE
SCRIPT 2026 QUESTIONS AND ANSWERS
GUARANTEED TO PASS
◉ Who can make changes to the policy once it is in effect?
A) The agent
B) An executive officer of the insurer
C) The insured
D_ The policyowner Answer: An executive officer of the insurer
◉ Which of the following is NOT true of Section 1035 Policy
Exchanges? Answer: Any exchange made under Section 1035 of the
Internal Revenue Code must be completed within 30 days.
◉ The clause that protects the proceeds of a life insurance policy
from creditors after the death of the insured is known as the:
Answer: Spendthrift clause
◉ If a deferred annuity is surrendered prematurely, a surrender
charge is imposed. How is the surrender charge determined?
Answer: It is a percentage of the cash value and decreases over time
,◉ For how long is an insurance company allowed to defer policy
loan requests? Answer: 6 months
◉ What is the maximum life insurance coverage available to the
state residents through WI State Life Insurance Fund?
A) $10,000
B) $50,000
C) $5,000 Answer: $10,000
◉ Which of the following determines the cash value of a variable life
policy?
A) The performance of the policy portfolio
B) The policy's guarantees Answer: The performance of the policy
portfolio
◉ An insured committed suicide 6 months after his life insurance
policy was issued. The insurer will:
A) Refund the premiums paid
B) Pay the full death benefit to the beneficiary Answer: Refund the
premiums paid
◉ All of the following would be different between qualified and
nonqualified retirement plans EXCEPT:
A) IRS approval requirements
,B) Taxation on accumulation Answer: Taxation on accumulation
◉ How long will the beneficiary receive payments under the single
life settlement option?
A) Until the insured's death
B) For a specified period of time
C) Until the beneficiary's death Answer: Until the beneficiary's death
◉ An insured has had a life insurance policy that he purchased 3
years ago when he was 40 years old. He is killed in an automobile
accident and it is discovered that he is actually 45 years old, and not
43, as stated on the application. What will the company do?
A) Pay a reduced death benefit
B) Pay the full death benefit Answer: Pay a reduced death benefit
◉ What must happen when an individual policy or annuity has been
personally delivered to the policy owner? Answer: The policy owner
must sign a delivery receipt
◉ Which type of life insurance policy allows the policyowner to pay
more or less than the planned premium?
A) Straight whole life
B) Universal life
C) Variable life
, D) Decreasing term Answer: Universal life
◉ If a deferred annuity is surrendered prematurely, a surrender
charge is imposed. How is the surrender charge determined?
A) It is a percentage of the cash value and decreases over time
B) It is a flat fee determined by the annuity owner when the annuity
is purchased Answer: It is a percentage of the cash value and
decreases over time
◉ At age 30, an applicant wants to start an insurance program, but
realizing that his insurance needs will likely change, he wants a
policy that can be modified to accommodate those changes as they
occur. Which of the following policies would most likely fit his
needs? Answer: Adjustable life
◉ What documentation grants express authority to an agent?
A) Agents insurance license
B) Agent's contract with the principal Answer: Agent's contract with
the principal
◉ Any 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: Answer: Rebating
SCRIPT 2026 QUESTIONS AND ANSWERS
GUARANTEED TO PASS
◉ Who can make changes to the policy once it is in effect?
A) The agent
B) An executive officer of the insurer
C) The insured
D_ The policyowner Answer: An executive officer of the insurer
◉ Which of the following is NOT true of Section 1035 Policy
Exchanges? Answer: Any exchange made under Section 1035 of the
Internal Revenue Code must be completed within 30 days.
◉ The clause that protects the proceeds of a life insurance policy
from creditors after the death of the insured is known as the:
Answer: Spendthrift clause
◉ If a deferred annuity is surrendered prematurely, a surrender
charge is imposed. How is the surrender charge determined?
Answer: It is a percentage of the cash value and decreases over time
,◉ For how long is an insurance company allowed to defer policy
loan requests? Answer: 6 months
◉ What is the maximum life insurance coverage available to the
state residents through WI State Life Insurance Fund?
A) $10,000
B) $50,000
C) $5,000 Answer: $10,000
◉ Which of the following determines the cash value of a variable life
policy?
A) The performance of the policy portfolio
B) The policy's guarantees Answer: The performance of the policy
portfolio
◉ An insured committed suicide 6 months after his life insurance
policy was issued. The insurer will:
A) Refund the premiums paid
B) Pay the full death benefit to the beneficiary Answer: Refund the
premiums paid
◉ All of the following would be different between qualified and
nonqualified retirement plans EXCEPT:
A) IRS approval requirements
,B) Taxation on accumulation Answer: Taxation on accumulation
◉ How long will the beneficiary receive payments under the single
life settlement option?
A) Until the insured's death
B) For a specified period of time
C) Until the beneficiary's death Answer: Until the beneficiary's death
◉ An insured has had a life insurance policy that he purchased 3
years ago when he was 40 years old. He is killed in an automobile
accident and it is discovered that he is actually 45 years old, and not
43, as stated on the application. What will the company do?
A) Pay a reduced death benefit
B) Pay the full death benefit Answer: Pay a reduced death benefit
◉ What must happen when an individual policy or annuity has been
personally delivered to the policy owner? Answer: The policy owner
must sign a delivery receipt
◉ Which type of life insurance policy allows the policyowner to pay
more or less than the planned premium?
A) Straight whole life
B) Universal life
C) Variable life
, D) Decreasing term Answer: Universal life
◉ If a deferred annuity is surrendered prematurely, a surrender
charge is imposed. How is the surrender charge determined?
A) It is a percentage of the cash value and decreases over time
B) It is a flat fee determined by the annuity owner when the annuity
is purchased Answer: It is a percentage of the cash value and
decreases over time
◉ At age 30, an applicant wants to start an insurance program, but
realizing that his insurance needs will likely change, he wants a
policy that can be modified to accommodate those changes as they
occur. Which of the following policies would most likely fit his
needs? Answer: Adjustable life
◉ What documentation grants express authority to an agent?
A) Agents insurance license
B) Agent's contract with the principal Answer: Agent's contract with
the principal
◉ Any 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: Answer: Rebating
