WISCONSIN LIFE INSURANCE EXAM
LICENSING TEST PAPER QUESTIONS AND
SOLUTIONS 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
LICENSING TEST PAPER QUESTIONS AND
SOLUTIONS 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
