WEBCE INSURANCE ACTUAL EXAM QUESTIONS
WITH CORRECT ANSWERS TESTED AND
APPROVED!!!
Barb, age 40, buys a ten-pay life policy while Jill, age 40, buys a life paid up at
age 65 policy.
All other factors being equal, which of the following statements is most correct?
Barb and Jill will pay approximately the same monthly premium amount every
year, and their policies will mature at about the same time.
Barb will pay a higher monthly premium over a shorter time than Jill, and their
policies will mature at about the same time.
Jill will pay a higher monthly premium than Barb, and their policies will
mature at about the same time.
Barb and Jill will pay approximately the same monthly premium amount every
year, but Barb's policy will mature before Jill's. -- ANSWER--barb will pay a
higher monthly premium over a shorter time than Jill, and their policies will
mature at about the same time
Unlike traditional fixed interest UL policies, many variable universal life
policies offer a third death benefit option, which provides a guaranteed
minimum death benefit equal to:
he policy's net amount at risk plus its cash value the policy's net amount at risk
plus its cash value minus the sum of premiums paid the policy's net amount at
Page 1 of 107
,risk plus the greater of the actual cash value or the sum of premiums paid the
policy's net amount at risk plus its cash value plus the sum of premiums paid --
ANSWER--the policy's net amount at risk plus the greater of the actual cash
value or the sum of premiums paid
In a front-end loaded universal life contract, when does the insurer deduct a
charge to cover the costs of administering the policy?
from the cash value after the premium has been deposited to it from the
premium payment before it is credited to the policy's cash value once, when the
first premium is paid at the start of each policy year -- ANSWER--from the
premium payment before it is credited to the policy's cash value
Jack bought a life insurance policy that will provide a lump-sum death benefit
plus a ten-year stream of income should he die before a specified date. Five
years after purchasing the policy, before the specified date, Jack died and the
policy began paying a monthly benefit to his family for ten years. What type of
policy did Jack buy?
Jessica, age 25, buys a $100,000 life insurance policy. The initial premium is
lower than straight whole life rates and increases each year for the first ten years
of the policy period. After that, the premium levels off and stays at that amount
for the life of the policy. What type of policy does Jessica own?
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,10-pay whole life single premium whole life graded premium whole life
modified premium whole life -- ANSWER--graded premium whole life
Which one of the following statements about variable life insurance is correct?
Variable life policyowners can invest all of their premiums in the insurer's
general account.
Subaccounts are managed within the insurer's general account.
Variable life policyowners can choose flexible premium payment schedules.
With a variable life insurance policy, the policyowner assumes most of the
investment risk. - ANSWER--With a variable life insurance policy, the
policyowner assumes most of the investment risk.
Which of the following statements best explains the basic level premium
concept of ordinary whole life insurance?
The steady reduction of the policy's net amount at risk offsets the cost of pure
insurance that rises with age.
Funds are withdrawn from the policy's cash value in the later years to pay the
rising cost of pure insurance.
The death benefit is decreased to offset the rising cost of insurance with age.
The insurer averages the cost of pure insurance over the insured's life
expectancy so that the mortality charge remains level. -- ANSWER--the steady
Page 3 of 107
, reduction of the policy's net amount at risk offsets the cost of pure insurance
that rises with age
All the following statements about ordinary (straight) whole life insurance are
correct
EXCEPT:
The insured pays premiums for his or her entire life.
Premiums remain level.
The death benefit increases during the early policy years and then levels off.
It has a steadily increasing cash value. -- ANSWER--XXX the death benefit
increases during the early policy years and then levels off XXX
ten-year family maintenance policy ten-year family income policy
survivorship life insurance policy ten-year family protection policy --
ANSWER--ten-year family maintenance policy
All of the following statements regarding joint life insurance and survivorship
life insurance are correct EXCEPT:
Joint life insurance lets the surviving insured purchase an individual policy
without having to prove insurability upon the first insured's death.
Page 4 of 107
WITH CORRECT ANSWERS TESTED AND
APPROVED!!!
Barb, age 40, buys a ten-pay life policy while Jill, age 40, buys a life paid up at
age 65 policy.
All other factors being equal, which of the following statements is most correct?
Barb and Jill will pay approximately the same monthly premium amount every
year, and their policies will mature at about the same time.
Barb will pay a higher monthly premium over a shorter time than Jill, and their
policies will mature at about the same time.
Jill will pay a higher monthly premium than Barb, and their policies will
mature at about the same time.
Barb and Jill will pay approximately the same monthly premium amount every
year, but Barb's policy will mature before Jill's. -- ANSWER--barb will pay a
higher monthly premium over a shorter time than Jill, and their policies will
mature at about the same time
Unlike traditional fixed interest UL policies, many variable universal life
policies offer a third death benefit option, which provides a guaranteed
minimum death benefit equal to:
he policy's net amount at risk plus its cash value the policy's net amount at risk
plus its cash value minus the sum of premiums paid the policy's net amount at
Page 1 of 107
,risk plus the greater of the actual cash value or the sum of premiums paid the
policy's net amount at risk plus its cash value plus the sum of premiums paid --
ANSWER--the policy's net amount at risk plus the greater of the actual cash
value or the sum of premiums paid
In a front-end loaded universal life contract, when does the insurer deduct a
charge to cover the costs of administering the policy?
from the cash value after the premium has been deposited to it from the
premium payment before it is credited to the policy's cash value once, when the
first premium is paid at the start of each policy year -- ANSWER--from the
premium payment before it is credited to the policy's cash value
Jack bought a life insurance policy that will provide a lump-sum death benefit
plus a ten-year stream of income should he die before a specified date. Five
years after purchasing the policy, before the specified date, Jack died and the
policy began paying a monthly benefit to his family for ten years. What type of
policy did Jack buy?
Jessica, age 25, buys a $100,000 life insurance policy. The initial premium is
lower than straight whole life rates and increases each year for the first ten years
of the policy period. After that, the premium levels off and stays at that amount
for the life of the policy. What type of policy does Jessica own?
Page 2 of 107
,10-pay whole life single premium whole life graded premium whole life
modified premium whole life -- ANSWER--graded premium whole life
Which one of the following statements about variable life insurance is correct?
Variable life policyowners can invest all of their premiums in the insurer's
general account.
Subaccounts are managed within the insurer's general account.
Variable life policyowners can choose flexible premium payment schedules.
With a variable life insurance policy, the policyowner assumes most of the
investment risk. - ANSWER--With a variable life insurance policy, the
policyowner assumes most of the investment risk.
Which of the following statements best explains the basic level premium
concept of ordinary whole life insurance?
The steady reduction of the policy's net amount at risk offsets the cost of pure
insurance that rises with age.
Funds are withdrawn from the policy's cash value in the later years to pay the
rising cost of pure insurance.
The death benefit is decreased to offset the rising cost of insurance with age.
The insurer averages the cost of pure insurance over the insured's life
expectancy so that the mortality charge remains level. -- ANSWER--the steady
Page 3 of 107
, reduction of the policy's net amount at risk offsets the cost of pure insurance
that rises with age
All the following statements about ordinary (straight) whole life insurance are
correct
EXCEPT:
The insured pays premiums for his or her entire life.
Premiums remain level.
The death benefit increases during the early policy years and then levels off.
It has a steadily increasing cash value. -- ANSWER--XXX the death benefit
increases during the early policy years and then levels off XXX
ten-year family maintenance policy ten-year family income policy
survivorship life insurance policy ten-year family protection policy --
ANSWER--ten-year family maintenance policy
All of the following statements regarding joint life insurance and survivorship
life insurance are correct EXCEPT:
Joint life insurance lets the surviving insured purchase an individual policy
without having to prove insurability upon the first insured's death.
Page 4 of 107
