WISCONSIN LIFE INSURANCE
EXAMINATION REVIEW PACK BUNDLED
QUESTIONS AND VERIFIED ANSWERS
●● What is created after policy proceeds are obtained in a lump sum and
then immediately invested?.
Answer: Estate
●● When are group disability benefits considered to be tax-free to the
insured?.
Answer: When the recipient pays the premiums
●● Which of the following describes a person who is NOT acceptable
by an insurer at standard rates because of health history, occupation, or
hobbies?.
Answer: Substandard Risk
●● The ________________ decides on the suitability of a disability
(accident & health) policy for an applicant..
Answer: intermediary
●● An intermediary must hold which of the following licenses to sell
variable life insurance policies?.
,Answer: Life, variable, and securities license
●● An insurer's claim settlement practices are regulated by the.
Answer: State insurance departments
●● A type of insurer that is owned by its policyowners is called.
Answer: mutual
●● An insurer's ability to make unpredictable payouts to policyowners is
called.
Answer: liquidity
●● Karen is a producer who has obtained personal information about a
client without having a legitimate reason to do so. Under the McCarren-
Ferguson Act, what is the minimum penalty for this?.
Answer: $10,000 or up to one year in jail
●● A life insurance company has transferred some of its risk to another
insurer. The insurer assuming the risk is called the.
Answer: reinsurer
●● The Do Not Call Registry offers exemptions for calls placed from all
of the following EXCEPT.
,Answer: insurance sales calls
●● Why are dividends from a mutual insurer not subject to taxation?.
Answer: Because dividends are considered to be a return of premium
●● ABC Insurance Company transfers part of their risk to XYZ
Insurance Company. This situation is called.
Answer: reinsurance
●● The Fair Credit and Reporting Act's main purpose is to.
Answer: protect consumers with guidelines regarding credit reporting
and distribuition
●● A plan in which an employer pays insurance benefits from a fund
derived from the employer's current revenues is called.
Answer: a self-funded plan
●● A non participating policy will.
Answer: not pay dividends
●● What kind of life insurance policy issued by a mutual insurer
provides a return of divisible surplus?.
Answer: participating life insurance policy
, ●● Fraternal Benefit Society has each of the following characteristics
EXCEPT.
Answer: exist for profit
●● A(n) _______________ company is owned by its shareholders.
Answer: stock
●● Ken is a producer who has obtained Consumer Information Reports
under false pretenses. Under the Fair Credit Reporting Act, what is the
maximum penalty that may be imposed on Ken?.
Answer: $5,000
●● What is the primary purpose of a rating service company such as
A.M Best?.
Answer: determine financial strength of an insurance company
●● What is considered to be the primary reason for buying life
insurance?.
Answer: provide death benefits
●● A nonparticipating company is sometimes called a(n).
Answer: stock insurer
EXAMINATION REVIEW PACK BUNDLED
QUESTIONS AND VERIFIED ANSWERS
●● What is created after policy proceeds are obtained in a lump sum and
then immediately invested?.
Answer: Estate
●● When are group disability benefits considered to be tax-free to the
insured?.
Answer: When the recipient pays the premiums
●● Which of the following describes a person who is NOT acceptable
by an insurer at standard rates because of health history, occupation, or
hobbies?.
Answer: Substandard Risk
●● The ________________ decides on the suitability of a disability
(accident & health) policy for an applicant..
Answer: intermediary
●● An intermediary must hold which of the following licenses to sell
variable life insurance policies?.
,Answer: Life, variable, and securities license
●● An insurer's claim settlement practices are regulated by the.
Answer: State insurance departments
●● A type of insurer that is owned by its policyowners is called.
Answer: mutual
●● An insurer's ability to make unpredictable payouts to policyowners is
called.
Answer: liquidity
●● Karen is a producer who has obtained personal information about a
client without having a legitimate reason to do so. Under the McCarren-
Ferguson Act, what is the minimum penalty for this?.
Answer: $10,000 or up to one year in jail
●● A life insurance company has transferred some of its risk to another
insurer. The insurer assuming the risk is called the.
Answer: reinsurer
●● The Do Not Call Registry offers exemptions for calls placed from all
of the following EXCEPT.
,Answer: insurance sales calls
●● Why are dividends from a mutual insurer not subject to taxation?.
Answer: Because dividends are considered to be a return of premium
●● ABC Insurance Company transfers part of their risk to XYZ
Insurance Company. This situation is called.
Answer: reinsurance
●● The Fair Credit and Reporting Act's main purpose is to.
Answer: protect consumers with guidelines regarding credit reporting
and distribuition
●● A plan in which an employer pays insurance benefits from a fund
derived from the employer's current revenues is called.
Answer: a self-funded plan
●● A non participating policy will.
Answer: not pay dividends
●● What kind of life insurance policy issued by a mutual insurer
provides a return of divisible surplus?.
Answer: participating life insurance policy
, ●● Fraternal Benefit Society has each of the following characteristics
EXCEPT.
Answer: exist for profit
●● A(n) _______________ company is owned by its shareholders.
Answer: stock
●● Ken is a producer who has obtained Consumer Information Reports
under false pretenses. Under the Fair Credit Reporting Act, what is the
maximum penalty that may be imposed on Ken?.
Answer: $5,000
●● What is the primary purpose of a rating service company such as
A.M Best?.
Answer: determine financial strength of an insurance company
●● What is considered to be the primary reason for buying life
insurance?.
Answer: provide death benefits
●● A nonparticipating company is sometimes called a(n).
Answer: stock insurer
