WISCONSIN LIFE INSURANCE LAW 0820

When replacing a policy, an insurer must maintain a file containing copies of all statements for A 5 years. B 10 years. C As long as the insurer remains in business. D 3 years.

A 5 years. It is the insurer's duty to maintain a copy of all statements for at least 5 years.

Records of replacement suitability inquiries must be kept in the agent's file for at least A 1 year. B 3 years. C 5 years. D 7 years.

B 3 years. Records of replacement suitability inquiries must be kept in the agent's file for at least 3 years.

Which of the following is a presentation that includes nonguaranteed elements of a policy over a period of years? A Illustration B Prospectus C Policy summary D Agent's report

A Illustration An illustration is a presentation that includes nonguaranteed elements of a policy over a period of years. A basic illustration means a ledger or proposal used to show both guaranteed and nonguaranteed elements of the policy.

Producers are required to comply with strict regulations when advising senior consumers about annuities. Which of the following would be considered a senior consumer? A Any person qualified for Medicare B Any person age 65 or older C Any person age 60 or older D Any person qualified for Social Security

B Any person age 65 or older A senior consumer is any person age 65 or older, including a joint owner or prospective joint owner under age 65 if at least one joint owner is 65 or older.

An agent's advertisements for life insurance must be approved by A The agent. B The agent's company. C The Commissioner. D The Governor.

B The agent's company. Any advertising by an agent must be approved by the agent's company

No one may perform, offer to perform, or advertise any service in life insurance and securities, unless A The person does not need a license to advertise a service in life or securities. B The person is licensed and authorized in both areas. C The person is licensed in at least one area. D The person is licensed in all lines of insurance.

B The person is licensed and authorized in both areas. No person may perform, offer to perform, or advertise any service in life insurance and securities, unless the person is licensed and authorized in both areas.

Which correctly describes the facility of payment clause that is found in group life insurance policies? A It does not apply to all group policies, only cash value policies. B It must be a minimum of $5,000 payable to any person to cover funeral expenses. C It must be a benefit of up to $1,000 payable to any person to cover funeral expenses or medical expenses. D It can only be paid to immediate family members.

C It must be a benefit of up to $1,000 payable to any person to cover funeral expenses or medical expenses. Facility of payment applies on a group life policy when there is no listed beneficiary. This provision allows up to $1,000 to be paid to any person to cover funeral expenses.

What is the minimum duration of the grace period in a group life insurance policy in this state? A 7 days B 10 days C 20 days D 31 days

D 31 days In order to avoid an unintentional lapse, every life insurance policy must contain a grace period provision entitling the policyholder to a grace period of not less than 31 days, after the initial premium was paid. The policy is in force during the grace period, unless the policyholder gives the insurer advance written notice of discontinuance. If an insured dies during the grace period, the premium may be deducted from the policy face.

An insured's monthly life insurance premiums are due on the first of each month. She misses her July 1 premium. When will her policy terminate, if she does not pay her premiums? A July 2 B July 11 C July 21 D August 1

D August 1 In order to avoid an unintentional lapse, every life insurance policy must contain a provision entitling the policyholder to a grace period of at least than 31 days, after the initial premium was paid. During the grace period, the policy is in force. If an insured dies during the grace period, the premium is deducted from the policy face.

Which of the following does NOT apply to variable contracts? A Insurers do not have to provide any financial information or history of the company. B Insurers must be licensed and authorized to transact life insurance and annuity business. C Insurers may establish one or more separate accounts for allocation of settlement or dividend options. D Insurers must submit a statement containing the essential features of how the dollar amount will be determined and that the benefit dollar amount will vary.

A Insurers do not have to provide any financial information or history of the company. The commissioner will take the financial information and history of the company before determining they are authorized.

An insured innocently omitted a health problem in her life insurance application that would have influenced her premium amounts. The policy is issued, and the insurer discovers the error 3 years later. Which of the following will most likely happen? A The premium amounts will remain unchanged. B The policy will be cancelled. C The premium will be adjusted, and it will apply retroactively, meaning that she will have to pay the difference in premium amounts for the last 3 years. D The policy will be changed, and although she will not have to pay any extra retroactive premium fees, she will have to pay a penalty.

A The premium amounts will remain unchanged. No individual life insurance policy may be contested after it has been in force for 2 years from the date of issue, except for non-payment of premiums and misstatement of age. Misstatement of age applies only if the insured's age was beyond the maximum age limit designated by the insurer.

Who does the Interstate Insurance Product Regulation Compact serve? A Insureds B Commissioner C NAIC D Insurers

D Insurers The IIPRC provides insurers a single point of filing for the review and approval of insurance policy forms instead of submitting the forms to each individual state where the forms will be used.

An applicant accidentally writes on her application that she is 10 years older than she actually is. The policy is issued, and the insurer discovers the error several months later. Which of the following is most likely to happen to the premiums? A They will be charged according to her actual age. B They will be raised as a penalty for a period of up to a year. C The action on this varies from one insurer to the next. D They will be charged according to the age that she wrote on the application.

A They will be charged according to her actual age. According to the Misstatement of Age provision, if a person's age has been misstated, the benefits or premiums or both will be adjusted to reflect the premiums paid.

A Buyer's Guide must be presented A When a potential applicant inquires about a policy. B When the application is taken. C Anytime before the policy is delivered. D At the time of policy delivery.

B When the application is taken. The insurer must also provide a copy of the life insurance buyer's guide to all prospective buyers, at the time the application is taken.

During a life insurance policy replacement, the insurer is required to provide the policyowner a free-look period of at least A 10 days. B 20 days. C 30 days. D 90 days.

C 30 days. The insurer must guarantee to the policyowner at least a 30-day free look (right to return) period for a full refund of premium.

What describes a ledger or proposal used to show both guaranteed and non-guaranteed elements of the policy? A Outline of coverage B Portioning illustration C Basic illustration D Ledger proposal

C Basic illustration An illustration is a presentation that includes non-guaranteed elements of a policy over a period of years. A basic illustration is a ledger or proposal used to show both guaranteed and non-guaranteed elements of the policy.

The policyowner of a life insurance policy forgets to pay his monthly premium and then dies 10 days later. Which of the following is true? A The policy will pay full death benefits, less the premiums that were due, in addition to a penalty. B The policy will not pay death benefits. C The policy will pay full death benefits, less the premiums that were due. D The policy will pay full death benefits.

C The policy will pay full death benefits, less the premiums that were due. In order to avoid an unintentional lapse, every life insurance policy must contain a provision entitling the policyholder to a grace period of at least than 31 days, after the initial premium was paid. During the grace period, the policy is in force. If an insured dies during the grace period, the premium is deducted from the policy face.

In order for an intermediary to sell or offer to sell a variable contract he/she must have which of the following types of licenses? A Life and Series 7 B Life and Variable contract license C Variable contracts and Series 7 D Life and Series 6

D Life and Series 6 In order for an intermediary to sell or offer to sell a variable contract he/she must have both a valid life insurance license and a securities license (Series 6).