WISE- Practice Test – Insurance Exam
Questions With 100% Correct Answers
2024/2025
For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value
clause. The person decides to surrender the policy. At the time of surrender, the person will receive
A. one-fifth of the $20,000 face value.
B. $20,000 less the premiums paid.
C. a calculated amount of money which includes the premiums paid as well as the interest on that
money.
D. a calculated amount of money that must be converted to a term life insurance policy.
C
Reason
The cash value of a whole life insurance policy is based on premiums paid plus some of the interest
earned.
A woman has just received a very expensive piece of jewelry. The woman has homeowner's
insurance. Which statement would it be most appropriate for her to make to her insurance agent?
A. "I think I need a personal property floater."
B. "I think I should get speculative risk insurance."
C. "I will deduct the cost of the jewelry from my premium."
D. "I realize that if this jewelry is stolen it will be considered vicarious liability."
A
Reason
A personal floater is additional property insurance, which is available within a homeowner's policy, to
cover damage or loss of a specific item of value.
A person buys a flat screen, plasma, theater-like television. The person has homeowner's insurance.
Why would it be appropriate to add a personal property floater to that insurance?
A. To reduce the premium on the homeowner's insurance.
B. To protect the person who owns the television from liability for damages.
C. To show the insurance company a good faith investment has been made.
D. To cover the cost of replacement should the television get damaged or stolen.
D
Reason
An extremely expensive item such as furs or jewelry or, in this case, the theater-like television, would
usually not be covered in a standard insurance policy. As a result, policy holders often opt to attach a
rider or floater to the policy to cover replacement or repair of these items. The policy holder also
must pay an additional premium for the floater coverage.
When Jessie needs health care, she must first go to her primary care physician who coordinates her
care and decides whether Jessie should see a specialist. Jessie pays $10 as the co-pay when she sees
her primary care doctor. Jessie has which type of health insurance?
A. Fee-for-service health plan
B. Managed care health plan
C. Medicaid health plan
D. Comprehensive health plan
B
Reason
Questions With 100% Correct Answers
2024/2025
For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value
clause. The person decides to surrender the policy. At the time of surrender, the person will receive
A. one-fifth of the $20,000 face value.
B. $20,000 less the premiums paid.
C. a calculated amount of money which includes the premiums paid as well as the interest on that
money.
D. a calculated amount of money that must be converted to a term life insurance policy.
C
Reason
The cash value of a whole life insurance policy is based on premiums paid plus some of the interest
earned.
A woman has just received a very expensive piece of jewelry. The woman has homeowner's
insurance. Which statement would it be most appropriate for her to make to her insurance agent?
A. "I think I need a personal property floater."
B. "I think I should get speculative risk insurance."
C. "I will deduct the cost of the jewelry from my premium."
D. "I realize that if this jewelry is stolen it will be considered vicarious liability."
A
Reason
A personal floater is additional property insurance, which is available within a homeowner's policy, to
cover damage or loss of a specific item of value.
A person buys a flat screen, plasma, theater-like television. The person has homeowner's insurance.
Why would it be appropriate to add a personal property floater to that insurance?
A. To reduce the premium on the homeowner's insurance.
B. To protect the person who owns the television from liability for damages.
C. To show the insurance company a good faith investment has been made.
D. To cover the cost of replacement should the television get damaged or stolen.
D
Reason
An extremely expensive item such as furs or jewelry or, in this case, the theater-like television, would
usually not be covered in a standard insurance policy. As a result, policy holders often opt to attach a
rider or floater to the policy to cover replacement or repair of these items. The policy holder also
must pay an additional premium for the floater coverage.
When Jessie needs health care, she must first go to her primary care physician who coordinates her
care and decides whether Jessie should see a specialist. Jessie pays $10 as the co-pay when she sees
her primary care doctor. Jessie has which type of health insurance?
A. Fee-for-service health plan
B. Managed care health plan
C. Medicaid health plan
D. Comprehensive health plan
B
Reason
