WISCONSIN LIFE INSURANCE EXAM 2026
UNDERWRITING AND RISK MANAGEMENT
WORKBOOK SOLVED QUESTIONS
COMPILATION
◉ 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
◉ Any person who violates an insurance statute or rule of Wisconsin
can be imprisoned up to:
Answer: 3.5 years
◉ The authority granted to an agent through the agent's contract is
referred to as:
A) Express authority
B) Apparent authority
Answer: Express authority
◉ Which of the following is an intermediary who acts in the
procuring of insurance on behalf of an applicant for insurance or an
insured?
Answer: Insurance broker
◉ Which of the following is NOT a goal of risk retention?
UNDERWRITING AND RISK MANAGEMENT
WORKBOOK SOLVED QUESTIONS
COMPILATION
◉ 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
◉ Any person who violates an insurance statute or rule of Wisconsin
can be imprisoned up to:
Answer: 3.5 years
◉ The authority granted to an agent through the agent's contract is
referred to as:
A) Express authority
B) Apparent authority
Answer: Express authority
◉ Which of the following is an intermediary who acts in the
procuring of insurance on behalf of an applicant for insurance or an
insured?
Answer: Insurance broker
◉ Which of the following is NOT a goal of risk retention?
