WEBCE LIFE AND HEALTH EXAM 2025
NEWEST EXAM QUESTIONS AND
DETAILED CORRECT ANSWERS |
ALREADY GRADED A+
In estate planning, this rule requires life insurance policies
transferred from the insured within 3 years before death to
be returned to the decedent's estate for valuation
purposes. Correct Answer Bring-Back Rule
Living benefits are made possible by the policy's cash
value, which is always available to the policyowner
through policy loans, withdrawals, and partial surrenders.
The funds may be used for any purpose. Correct Answer
Life Insurance "Living Benefits"
If a key employee ends his or her employment, the
employer can continue the policy in force. However, many
employers choose to:
sell the policy to the insured for an amount equal to its
cash value
surrender the policy or
change insureds if allowed by the insurance company and
applicable state law Correct Answer Key Person Life
Insurance
An insurance contract between a person and an insurer to
distribute an accumulated sum of money over a certain
period, including the person's lifetime.
,Annuities come in many forms, but they all have two
common purposes:
to accumulate money on a tax-deferred basis
to distribute the accumulated money as income in a
guaranteed amount for a guaranteed period (including the
annuitant's life) Correct Answer Annuity
This form of term life features a death benefit that
diminishes over time and premium that remains level for
the term of the policy. Correct Answer Decreasing Term
Life Insurance
To be considered fully insured, a worker must have 40
quarters of coverage. A fully insured worker is eligible for
disability, retirement, and death benefits. Correct Answer
Fully Insured Status (Social Security)
A type of buy-sell agreement in which each owner
purchases a life insurance policy on each of the other
owners. Correct Answer Cross-Purchase Buy-Sell
Agreement
The Employee Retirement Income Security Act of 1974
(ERISA) protects the rights of employees covered under
an employer-sponsored plan by stipulating minimum
participation, vesting, and funding requirements. Correct
Answer ERISA
,This beneficiary designation cannot be changed by the
policyowner without that beneficiary's permission. Correct
Answer Irrevocable Beneficiary
This life policy rider guarantees that additional coverage
can be added to a whole life policy even if the insured has
become uninsurable. Correct Answer Guaranteed
Insurability Rider
The person the annuity owner chooses to receive the
annuity contract's values if either the owner or the
annuitant dies before annuitization. Correct Answer
Annuity Beneficiary
Whole life insurance features a guaranteed cash value, a
fixed guaranteed death benefit, level premiums, and
coverage that can remain in effect as long as the insured
lives (up to age 120). Its most basic form is called straight
(or ordinary) whole life insurance. Correct Answer Whole
Life Insurance
A legal agreement through which two or more owners of a
business arrange for the disposition of each owner's share
of the business upon death. Correct Answer Buy-Sell
Agreement
The load factor reflects the costs the insurer expects to
incur on the policy. In determining its load factor, an
insurer is generally guided by three objectives:
to cover total operating costs
to provide a safety margin
, to contribute to profits or surplus Correct Answer Expense
Charge (Load Factor)
This basic form of life insurance provides temporary
protection and does not include a cash value while the
insured is alive. Correct Answer Term Life Insurance
The financial interest a policyowner has in a person or
property being insured, justifying the purchase of
insurance. Correct Answer Insurable Interest
The process through which a sum of money is converted
into periodic payments through an annuity contract.
Different for every age and annuity income option, annuity
purchase rates are defined in terms of income dollars per
$1,000 of accumulation. Correct Answer Annuitization
An investment-focused annuity whose contract values
vary in response to the contract's underlying assets and
are therefore not guaranteed. Correct Answer Variable
Annuity
Also available through a policy provision, the typical
accelerated benefit rider allows up to 50 percent of the
death benefit to be available to the eligible insured, though
some policies allow up to 100 percent. This money may be
used for any purpose. Correct Answer Accelerated Benefit
Rider
NEWEST EXAM QUESTIONS AND
DETAILED CORRECT ANSWERS |
ALREADY GRADED A+
In estate planning, this rule requires life insurance policies
transferred from the insured within 3 years before death to
be returned to the decedent's estate for valuation
purposes. Correct Answer Bring-Back Rule
Living benefits are made possible by the policy's cash
value, which is always available to the policyowner
through policy loans, withdrawals, and partial surrenders.
The funds may be used for any purpose. Correct Answer
Life Insurance "Living Benefits"
If a key employee ends his or her employment, the
employer can continue the policy in force. However, many
employers choose to:
sell the policy to the insured for an amount equal to its
cash value
surrender the policy or
change insureds if allowed by the insurance company and
applicable state law Correct Answer Key Person Life
Insurance
An insurance contract between a person and an insurer to
distribute an accumulated sum of money over a certain
period, including the person's lifetime.
,Annuities come in many forms, but they all have two
common purposes:
to accumulate money on a tax-deferred basis
to distribute the accumulated money as income in a
guaranteed amount for a guaranteed period (including the
annuitant's life) Correct Answer Annuity
This form of term life features a death benefit that
diminishes over time and premium that remains level for
the term of the policy. Correct Answer Decreasing Term
Life Insurance
To be considered fully insured, a worker must have 40
quarters of coverage. A fully insured worker is eligible for
disability, retirement, and death benefits. Correct Answer
Fully Insured Status (Social Security)
A type of buy-sell agreement in which each owner
purchases a life insurance policy on each of the other
owners. Correct Answer Cross-Purchase Buy-Sell
Agreement
The Employee Retirement Income Security Act of 1974
(ERISA) protects the rights of employees covered under
an employer-sponsored plan by stipulating minimum
participation, vesting, and funding requirements. Correct
Answer ERISA
,This beneficiary designation cannot be changed by the
policyowner without that beneficiary's permission. Correct
Answer Irrevocable Beneficiary
This life policy rider guarantees that additional coverage
can be added to a whole life policy even if the insured has
become uninsurable. Correct Answer Guaranteed
Insurability Rider
The person the annuity owner chooses to receive the
annuity contract's values if either the owner or the
annuitant dies before annuitization. Correct Answer
Annuity Beneficiary
Whole life insurance features a guaranteed cash value, a
fixed guaranteed death benefit, level premiums, and
coverage that can remain in effect as long as the insured
lives (up to age 120). Its most basic form is called straight
(or ordinary) whole life insurance. Correct Answer Whole
Life Insurance
A legal agreement through which two or more owners of a
business arrange for the disposition of each owner's share
of the business upon death. Correct Answer Buy-Sell
Agreement
The load factor reflects the costs the insurer expects to
incur on the policy. In determining its load factor, an
insurer is generally guided by three objectives:
to cover total operating costs
to provide a safety margin
, to contribute to profits or surplus Correct Answer Expense
Charge (Load Factor)
This basic form of life insurance provides temporary
protection and does not include a cash value while the
insured is alive. Correct Answer Term Life Insurance
The financial interest a policyowner has in a person or
property being insured, justifying the purchase of
insurance. Correct Answer Insurable Interest
The process through which a sum of money is converted
into periodic payments through an annuity contract.
Different for every age and annuity income option, annuity
purchase rates are defined in terms of income dollars per
$1,000 of accumulation. Correct Answer Annuitization
An investment-focused annuity whose contract values
vary in response to the contract's underlying assets and
are therefore not guaranteed. Correct Answer Variable
Annuity
Also available through a policy provision, the typical
accelerated benefit rider allows up to 50 percent of the
death benefit to be available to the eligible insured, though
some policies allow up to 100 percent. This money may be
used for any purpose. Correct Answer Accelerated Benefit
Rider
