WEBCE TEST 2026/2027
ACTUAL QUESTIONS WITH
VERIFIED ANSWERS.
Which of the following most accurately describes a market
value adjusted annuity (MVA)?
It is a type of deferred annuity that credits the contract with an
interest rate higher than current market rates.
It is a provision found in some deferred annuity contracts that
is intended to maintain a level current interest rate in times of
rate fluctuations.
It is a type of deferred annuity that encourages contract
owners to surrender the contract and transfer the funds to a
new MVA when interest rates are declining.
It is a provision found in some fixed deferred annuity contracts
that discourages deferred annuity contract owners from
surrendering their annuity when rates are rising. - correct
answer-it is a provision found in some fixed deferred annuity
contracts that discourages annuity contract owners from
surrendering their annuity when rates are rising
All of the following statements regarding tax benefits of
qualified retirement plans are correct EXCEPT:
, Employers can take an income tax deduction, within limits, for
contributions they make to the plan.
Employees are not currently taxed on contributions to the plan
made on their behalf by the employer.
Benefits are taxed to employees only when they are withdrawn
or distributed.
Upon distribution, employees are required to pay taxes only on
the interest earned on plan contributions but not on the
contribution amount itself. - correct answer-it is not true that
upon distribution, employees are required to pay taxes only on
the interest earned on plan contributions but not on plan
contributions themselves
Benefits are taxed to employees only when distributed or
withdrawn
From an insured's point of view, which definition of disability is
more advantageous?
Own occupation
Any occupation
Presumptive disability
Partial occupation - correct answer-own occupation is more
advantageous to the insured
,Ed is totally disabled from an accident and is now eligible for
social security disability benefits. When will benefit payments
begin?
Immediately
Within three months
After five months
After nine months - correct answer-after 5 months the social
security benefit payments will begin
This is a 5 month waiting period
Which defines a pre-existing condition for group health
insurance purposes?
A pre-existing condition is a health condition that the insured
was diagnosed with or treated for within the six months before
enrolling in the plan.
A pre-existing condition is a health condition that the insured
was diagnosed with or treated for within the 12 months before
enrolling in the plan.
A pre-existing condition is a condition for which care or
treatment was sought during the six weeks before enrollment.
, A pre-existing condition is any condition that was covered
under an earlier plan. - correct answer-a pre-exisiting condition
is a health condition the insured was diagnosed with or treated
for within the six months before enrolling in the plan
Nolan is covered by a group PPO plan. Ned has an individual
PPO plan. Which statement is correct?
Nolan pays less for coverage than Ned.
Nolan has more benefit options than Ned.
Ned's plan costs less than Nolan's plan.
Both plans cost the same. - correct answer-Nolan pays less for
coverage than Ned
The risk for a group is spread out, thus making group health
insurance less expensive than individual health insurance
Lynn participates in a flexible spending account established by
her employer. Which statement is NOT correct?
Lynn contributes funds to the account through a salary
reduction agreement.
The funds in the account roll over from year to year.
Funds in the account escape both income tax and payroll tax.
ACTUAL QUESTIONS WITH
VERIFIED ANSWERS.
Which of the following most accurately describes a market
value adjusted annuity (MVA)?
It is a type of deferred annuity that credits the contract with an
interest rate higher than current market rates.
It is a provision found in some deferred annuity contracts that
is intended to maintain a level current interest rate in times of
rate fluctuations.
It is a type of deferred annuity that encourages contract
owners to surrender the contract and transfer the funds to a
new MVA when interest rates are declining.
It is a provision found in some fixed deferred annuity contracts
that discourages deferred annuity contract owners from
surrendering their annuity when rates are rising. - correct
answer-it is a provision found in some fixed deferred annuity
contracts that discourages annuity contract owners from
surrendering their annuity when rates are rising
All of the following statements regarding tax benefits of
qualified retirement plans are correct EXCEPT:
, Employers can take an income tax deduction, within limits, for
contributions they make to the plan.
Employees are not currently taxed on contributions to the plan
made on their behalf by the employer.
Benefits are taxed to employees only when they are withdrawn
or distributed.
Upon distribution, employees are required to pay taxes only on
the interest earned on plan contributions but not on the
contribution amount itself. - correct answer-it is not true that
upon distribution, employees are required to pay taxes only on
the interest earned on plan contributions but not on plan
contributions themselves
Benefits are taxed to employees only when distributed or
withdrawn
From an insured's point of view, which definition of disability is
more advantageous?
Own occupation
Any occupation
Presumptive disability
Partial occupation - correct answer-own occupation is more
advantageous to the insured
,Ed is totally disabled from an accident and is now eligible for
social security disability benefits. When will benefit payments
begin?
Immediately
Within three months
After five months
After nine months - correct answer-after 5 months the social
security benefit payments will begin
This is a 5 month waiting period
Which defines a pre-existing condition for group health
insurance purposes?
A pre-existing condition is a health condition that the insured
was diagnosed with or treated for within the six months before
enrolling in the plan.
A pre-existing condition is a health condition that the insured
was diagnosed with or treated for within the 12 months before
enrolling in the plan.
A pre-existing condition is a condition for which care or
treatment was sought during the six weeks before enrollment.
, A pre-existing condition is any condition that was covered
under an earlier plan. - correct answer-a pre-exisiting condition
is a health condition the insured was diagnosed with or treated
for within the six months before enrolling in the plan
Nolan is covered by a group PPO plan. Ned has an individual
PPO plan. Which statement is correct?
Nolan pays less for coverage than Ned.
Nolan has more benefit options than Ned.
Ned's plan costs less than Nolan's plan.
Both plans cost the same. - correct answer-Nolan pays less for
coverage than Ned
The risk for a group is spread out, thus making group health
insurance less expensive than individual health insurance
Lynn participates in a flexible spending account established by
her employer. Which statement is NOT correct?
Lynn contributes funds to the account through a salary
reduction agreement.
The funds in the account roll over from year to year.
Funds in the account escape both income tax and payroll tax.
