WEBCE TEST PRACTICE
EXAMINATION 2026 QUESTIONS
WITH ANSWERS GRADED A+
◍ In general, what is the earliest age at which a person can take a distribution
from a qualified plan without a tax penalty?.
Answer: 59 1/2
◍ Under a life insurance policy's incontestability clause, after a certain period
the insurer cannot contest a claim for any reason, EXCEPT:a. the insured
becoming uninsurable within two years of the applicationb. non-payment of
premiumsc. an absolute assignment of the policyd. moral turpitude, as
defined by the policyowner's state of residence.
Answer: b. non-payment of premiums
◍ For estate tax purposes, what is the value of any life insurance policy a
person owns at his or her death?a. It is generally includible in the valuation
of his or her estate.b. It is fully deductible from the insured's estate.c. It is
subject to estate taxes at the beneficiary's death.d. It is includible in the
beneficiary's estate..
Answer: a. It is generally includible in the valuation of his or her estate.
◍ Carol was 35 when she bought her deferred annuity. Now, at age 38, she
wants to withdraw funds from the contract to take a vacation. Carol is likely
to encounter all of the following consequences in making the withdrawal
EXCEPT:.
Answer: statutory minimum withholding requirements
◍ When meeting with a prospect to discuss life insurance, Agent Tyler makes
disparaging comments about the financial stability and reputation of a
competitor to dissuade the prospect from purchasing its policies. Which
, unfair trade practice has Agent Tyler committed?a. defamationb. rebatingc.
unfair discriminationd. coercion.
Answer: a. defamation
◍ Suzanne's group health insurance policy terminated on December 31. Within
how many days must she apply for a conversion policy?a. 30 daysb. 31
daysc. 45 daysd. 60 days.
Answer: b. 31 days
◍ Sue, an annuity owner, names her 15-year-old son and 10-year-old daughter
as joint annuitants of her contract. Upon whose life (or lives) are income
payments determined?a. Sue's lifeb. Sue's son's lifec. Sue's daughter's lifed.
the joint life expectancy of Sue's son and daughter.
Answer: d. the joint life expectancy of Sue's son and daughter
◍ Which plan is associated with traditional insurers and reimburses the insured
for the cost of covered medical care received?a. indemnity plansb. managed
care plansc. HMOsd. PPOs.
Answer: a. indemnity plans
◍ What kind of misrepresentation on an insurance application gives the insurer
reason to terminate a policy?.
Answer: material fact
◍ Which of the following riders attached to Debra's life insurance policy
provides for a monthly income to be paid if she becomes disabled?.
Answer: disability income benefit rider
◍ In calculating their life insurance premiums, which of the following
statements generally guides insurance companies in determining the
"loading" factor?.
Answer: Total loading from all policies should cover total operating costs,
provide a safety margin, and contribute to profits or surplus.
◍ Horace buys a Medicare supplement insurance policy but decides not to
keep it. How many days does he have to return it for a full refund of the
premium?a. 10 daysb. 14 daysc. 21 daysd. 30 days.
, Answer: d. 30 days
◍ What is the main difference between ordinary whole life and limited
payment whole life insurance?.
Answer: the length of time that the insured must pay premiums
◍ Under a policy's facility of payment provision, what does an insurer do with
the death benefit if a valid beneficiary is not identifiable?a. The insurer
holds the funds in trust until the insured's estate is probated.b. The insurer
keeps the money.c. The insurer transfers the money to the state.d. The
insurer names a blood relative or someone with a valid claim as the new
beneficiary..
Answer: d. The insurer names a blood relative or someone with a valid
claim as the new beneficiary.
◍ Abby lives in New Mexico, where she is licensed as an insurance agent and
wants to apply for a nonresident license in Arizona. She holds a current
license in good standing in New Mexico. When applying for a license in
Arizona, Abby must prove her citizenship by submitting:.
Answer: a valid driver's license
◍ What is the grace period for payment of a premium on a group life insurance
policy?a. 15 daysb. 20 daysc. 30 daysd. 31 days.
Answer: d. 31 days
◍ Matt takes out a life insurance policy on himself to protect his family. Matt's
insurance company may consider all of the following when underwriting his
policy EXCEPT:.
Answer: his race
◍ Settlement options with a life contingency base their benefit payments on:a.
the insurance company's schedule of benefit payment amountsb. an amount
specified in the policyc. the insured's lifespand. the beneficiary's lifespan.
Answer: d. the beneficiary's lifespan
◍ Level term life insurance provides which of the following?a. a level
premium and a flexible death benefitb. a level premium and a level death
, benefitc. an increasing premium and a level death benefitd. an increasing
premium and a decreasing death benefit.
Answer: b. a level premium and a level death benefit
◍ ABC Insurance Company diligently maintains files of advertisements it uses
to market its health insurance policies. How long is it required to keep them
before it can purge them?a. four yearsb. three yearsc. two yearsd. one year.
Answer: b. three years
◍ Under which of the following do the cash values and death benefits rise and
fall on the basis of the policy's subaccount investment performance, and for
which the insurer does not guarantee a rate of return on the cash value
invested?.
Answer: variable life
◍ Which one of the following best describes what an agent's goals should be
in completing an application for insurance?a. speedb. accuracy,
thoroughness, and clarityc. getting the applicant's full medical historyd.
getting the applicant's signature as quickly as possible.
Answer: b. accuracy, thoroughness, and clarity
◍ Joanne buys a Medicare supplement policy but decides not to keep it. How
many days does she have to return it for a full refund of the premium she
paid?a. 10b. 14c. 21d. 30.
Answer: d. 30
◍ To help determine how much life insurance a prospect needs, agent Smith
uses the human life value approach which is essentially based on an estimate
of the prospect's:.
Answer: net future earnings discounted to a present value
◍ Which of the following statements about limited payment whole life
insurance and ordinary whole life insurance is correct?Policyowners pay
lower premiums during the early years of a limited payment insurance
policy than for ordinary life insurance.Both types of policies give protection
for the insured's whole life.Ordinary life insurance has level premiums while
EXAMINATION 2026 QUESTIONS
WITH ANSWERS GRADED A+
◍ In general, what is the earliest age at which a person can take a distribution
from a qualified plan without a tax penalty?.
Answer: 59 1/2
◍ Under a life insurance policy's incontestability clause, after a certain period
the insurer cannot contest a claim for any reason, EXCEPT:a. the insured
becoming uninsurable within two years of the applicationb. non-payment of
premiumsc. an absolute assignment of the policyd. moral turpitude, as
defined by the policyowner's state of residence.
Answer: b. non-payment of premiums
◍ For estate tax purposes, what is the value of any life insurance policy a
person owns at his or her death?a. It is generally includible in the valuation
of his or her estate.b. It is fully deductible from the insured's estate.c. It is
subject to estate taxes at the beneficiary's death.d. It is includible in the
beneficiary's estate..
Answer: a. It is generally includible in the valuation of his or her estate.
◍ Carol was 35 when she bought her deferred annuity. Now, at age 38, she
wants to withdraw funds from the contract to take a vacation. Carol is likely
to encounter all of the following consequences in making the withdrawal
EXCEPT:.
Answer: statutory minimum withholding requirements
◍ When meeting with a prospect to discuss life insurance, Agent Tyler makes
disparaging comments about the financial stability and reputation of a
competitor to dissuade the prospect from purchasing its policies. Which
, unfair trade practice has Agent Tyler committed?a. defamationb. rebatingc.
unfair discriminationd. coercion.
Answer: a. defamation
◍ Suzanne's group health insurance policy terminated on December 31. Within
how many days must she apply for a conversion policy?a. 30 daysb. 31
daysc. 45 daysd. 60 days.
Answer: b. 31 days
◍ Sue, an annuity owner, names her 15-year-old son and 10-year-old daughter
as joint annuitants of her contract. Upon whose life (or lives) are income
payments determined?a. Sue's lifeb. Sue's son's lifec. Sue's daughter's lifed.
the joint life expectancy of Sue's son and daughter.
Answer: d. the joint life expectancy of Sue's son and daughter
◍ Which plan is associated with traditional insurers and reimburses the insured
for the cost of covered medical care received?a. indemnity plansb. managed
care plansc. HMOsd. PPOs.
Answer: a. indemnity plans
◍ What kind of misrepresentation on an insurance application gives the insurer
reason to terminate a policy?.
Answer: material fact
◍ Which of the following riders attached to Debra's life insurance policy
provides for a monthly income to be paid if she becomes disabled?.
Answer: disability income benefit rider
◍ In calculating their life insurance premiums, which of the following
statements generally guides insurance companies in determining the
"loading" factor?.
Answer: Total loading from all policies should cover total operating costs,
provide a safety margin, and contribute to profits or surplus.
◍ Horace buys a Medicare supplement insurance policy but decides not to
keep it. How many days does he have to return it for a full refund of the
premium?a. 10 daysb. 14 daysc. 21 daysd. 30 days.
, Answer: d. 30 days
◍ What is the main difference between ordinary whole life and limited
payment whole life insurance?.
Answer: the length of time that the insured must pay premiums
◍ Under a policy's facility of payment provision, what does an insurer do with
the death benefit if a valid beneficiary is not identifiable?a. The insurer
holds the funds in trust until the insured's estate is probated.b. The insurer
keeps the money.c. The insurer transfers the money to the state.d. The
insurer names a blood relative or someone with a valid claim as the new
beneficiary..
Answer: d. The insurer names a blood relative or someone with a valid
claim as the new beneficiary.
◍ Abby lives in New Mexico, where she is licensed as an insurance agent and
wants to apply for a nonresident license in Arizona. She holds a current
license in good standing in New Mexico. When applying for a license in
Arizona, Abby must prove her citizenship by submitting:.
Answer: a valid driver's license
◍ What is the grace period for payment of a premium on a group life insurance
policy?a. 15 daysb. 20 daysc. 30 daysd. 31 days.
Answer: d. 31 days
◍ Matt takes out a life insurance policy on himself to protect his family. Matt's
insurance company may consider all of the following when underwriting his
policy EXCEPT:.
Answer: his race
◍ Settlement options with a life contingency base their benefit payments on:a.
the insurance company's schedule of benefit payment amountsb. an amount
specified in the policyc. the insured's lifespand. the beneficiary's lifespan.
Answer: d. the beneficiary's lifespan
◍ Level term life insurance provides which of the following?a. a level
premium and a flexible death benefitb. a level premium and a level death
, benefitc. an increasing premium and a level death benefitd. an increasing
premium and a decreasing death benefit.
Answer: b. a level premium and a level death benefit
◍ ABC Insurance Company diligently maintains files of advertisements it uses
to market its health insurance policies. How long is it required to keep them
before it can purge them?a. four yearsb. three yearsc. two yearsd. one year.
Answer: b. three years
◍ Under which of the following do the cash values and death benefits rise and
fall on the basis of the policy's subaccount investment performance, and for
which the insurer does not guarantee a rate of return on the cash value
invested?.
Answer: variable life
◍ Which one of the following best describes what an agent's goals should be
in completing an application for insurance?a. speedb. accuracy,
thoroughness, and clarityc. getting the applicant's full medical historyd.
getting the applicant's signature as quickly as possible.
Answer: b. accuracy, thoroughness, and clarity
◍ Joanne buys a Medicare supplement policy but decides not to keep it. How
many days does she have to return it for a full refund of the premium she
paid?a. 10b. 14c. 21d. 30.
Answer: d. 30
◍ To help determine how much life insurance a prospect needs, agent Smith
uses the human life value approach which is essentially based on an estimate
of the prospect's:.
Answer: net future earnings discounted to a present value
◍ Which of the following statements about limited payment whole life
insurance and ordinary whole life insurance is correct?Policyowners pay
lower premiums during the early years of a limited payment insurance
policy than for ordinary life insurance.Both types of policies give protection
for the insured's whole life.Ordinary life insurance has level premiums while
