WISCONSIN LIFE INSURANCE EXAM 2026
ANNUITIES AND BENEFITS REVIEW QUESTIONS
ANSWERS VERIFIED GUIDE
◉ 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
ANNUITIES AND BENEFITS REVIEW QUESTIONS
ANSWERS VERIFIED GUIDE
◉ 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
