WISCONSIN LIFE INSURANCE EXAM 2026
STATE LAWS AND ETHICS DRILL PACK
ANSWER SHEET
◉ 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? (hint this is a water brand)
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? (Hint: Bottom of the alphabet, gradual =
starting point and go up from there A-Z)
Answer: Option A
◉ The type of term insurance that provides increasing death
benefits as the insured ages is called: (hint: as you age your number
is increasing)
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? (hint: paid
back, if you have a loan you have to pay it 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?
(hint: the answer to this is bogus bc why would you ever be allowed
to discriminate but the law is the stupid law)
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? (the question was incomplete
in this picture) (hint: home = nursing 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 (hint: the expensive option)
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? (hint: MAIN =
MEC)
STATE LAWS AND ETHICS DRILL PACK
ANSWER SHEET
◉ 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? (hint this is a water brand)
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? (Hint: Bottom of the alphabet, gradual =
starting point and go up from there A-Z)
Answer: Option A
◉ The type of term insurance that provides increasing death
benefits as the insured ages is called: (hint: as you age your number
is increasing)
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? (hint: paid
back, if you have a loan you have to pay it 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?
(hint: the answer to this is bogus bc why would you ever be allowed
to discriminate but the law is the stupid law)
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? (the question was incomplete
in this picture) (hint: home = nursing 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 (hint: the expensive option)
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? (hint: MAIN =
MEC)
