IWEBCE Practice Exam 100 q|Latest Update
n general, what is the earliest age at which a person can take a distribution from a qualified plan
without a tax penalty?
59 1/2
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:
statutory minimum withholding requirements
What kind of misrepresentation on an insurance application gives the insurer reason to terminate a
policy?
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?
disability income benefit rider
In calculating their life insurance premiums, which of the following statements generally guides
insurance companies in determining the "loading" factor?
Total loading from all policies should cover total operating costs, provide a safety margin, and
contribute to profits or surplus.
What is the main difference between ordinary whole life and limited payment whole life insurance?
the length of time that the insured must pay premiums
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:
a valid driver's license
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:
his race
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?
variable life
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:
net future earnings discounted to a present value
Which one of the following statements about Multiple Employer Welfare Arrangements (MEWAs) is
most correct?
, They are usually created by employers in the same industry.
Which of the following best describes income payments under the period certain payout option?
the longer the payout period, the smaller the amount of each monthly payment
Delta Co. buys a group life insurance policy for its employees. As the plan sponsor, what will Delta
receive?
a policy
Margie owns a fixed life insurance policy. What type of death benefit is Margie guaranteed?
The policy guarantees a fixed amount.
What is the minimum grace period required for payment on an annuity?
30 days
Which one of the following has more than "an expectancy" that he or she will receive the death
benefit under a life insurance policy?
an irrevocable beneficiary
An agent for ABC Insurance Company meets with a client. The agent shows the client ABC's sample
policies, refers to the ABC rate book, and gives the client an ABC business card. The client assumes
that ABC has appointed the agent to represent it. What kind of authority does the agent have?
apparent authority
Which statement about variable annuity subaccounts is NOT correct?
The insurer selects the variable subaccounts to which the contract owner's premiums are allocated.
Stephanie is hired by ABC Insurance Company's home office. She does not have an insurance
producer's license. Which of the following duties may she perform for ABC?
mail company correspondence for the president
The life insurance nonforfeiture option that results in the permanent continuation of cash value life
insurance with no further premiums is called the:
reduced paid-up option
A life insurance policy may accelerate payment of the death benefit for any of the following reasons
EXCEPT:
partial, temporary disability
The formal name for what is commonly called a 'double indemnity' rider is:
accidental death benefit rider
Which of the following statements about life insurance accelerated living benefits riders or provisions
is correct?
They let the insured access a portion of the policy's face amount while still alive.
n general, what is the earliest age at which a person can take a distribution from a qualified plan
without a tax penalty?
59 1/2
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:
statutory minimum withholding requirements
What kind of misrepresentation on an insurance application gives the insurer reason to terminate a
policy?
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?
disability income benefit rider
In calculating their life insurance premiums, which of the following statements generally guides
insurance companies in determining the "loading" factor?
Total loading from all policies should cover total operating costs, provide a safety margin, and
contribute to profits or surplus.
What is the main difference between ordinary whole life and limited payment whole life insurance?
the length of time that the insured must pay premiums
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:
a valid driver's license
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:
his race
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?
variable life
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:
net future earnings discounted to a present value
Which one of the following statements about Multiple Employer Welfare Arrangements (MEWAs) is
most correct?
, They are usually created by employers in the same industry.
Which of the following best describes income payments under the period certain payout option?
the longer the payout period, the smaller the amount of each monthly payment
Delta Co. buys a group life insurance policy for its employees. As the plan sponsor, what will Delta
receive?
a policy
Margie owns a fixed life insurance policy. What type of death benefit is Margie guaranteed?
The policy guarantees a fixed amount.
What is the minimum grace period required for payment on an annuity?
30 days
Which one of the following has more than "an expectancy" that he or she will receive the death
benefit under a life insurance policy?
an irrevocable beneficiary
An agent for ABC Insurance Company meets with a client. The agent shows the client ABC's sample
policies, refers to the ABC rate book, and gives the client an ABC business card. The client assumes
that ABC has appointed the agent to represent it. What kind of authority does the agent have?
apparent authority
Which statement about variable annuity subaccounts is NOT correct?
The insurer selects the variable subaccounts to which the contract owner's premiums are allocated.
Stephanie is hired by ABC Insurance Company's home office. She does not have an insurance
producer's license. Which of the following duties may she perform for ABC?
mail company correspondence for the president
The life insurance nonforfeiture option that results in the permanent continuation of cash value life
insurance with no further premiums is called the:
reduced paid-up option
A life insurance policy may accelerate payment of the death benefit for any of the following reasons
EXCEPT:
partial, temporary disability
The formal name for what is commonly called a 'double indemnity' rider is:
accidental death benefit rider
Which of the following statements about life insurance accelerated living benefits riders or provisions
is correct?
They let the insured access a portion of the policy's face amount while still alive.
