Guarantee exam wisco life
An equity index annuity will grow based upon a) A rate of interest determined by the banking system b) performance of a recognized index c) performance in a separate account d) Current interest rates
b
if an individual willfully violates provisions of the fair credit reporting act, what is the maximum civil penalty? a) $1,000 b) $2,500 c) $5,000 d) $10,000
b
FICA tax applies to which of the following? a) group insurance b) social security c) life settlements d) lump-sum death benefits
b
when an insured terminates membership in the insured group, the insured can convert to a) whole life with proof of insurability b) term without proof of insurability c) term with proof of insurability d) whole life without proof of insurability
d
A social security disability must be expected to last for at least how many months in order for the person to qualify for disability benefits? a) 12 b) 3 c) 6 d) 9
a
Which of the following best describes pure life annuity? a) it continues payments to the beneficiary when the annuitant dies b) it is also known as refund life annuity c) it guarantees to pay out all the proceeds d) it provides the highest monthly benefits
d
how many days after passing their state examination does an applicant have to apply for a license? a) 30 days b) 60 days c) 90 days d) 180 says
d
The policy summary must stay the effective policy loan annual percentage interest rate for at least a) 5 years b) 10 years c) 15 years d) 20 years
d
A new homebuyer wants to purchase a life insurance policy that would protect his family against losing the home, should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need would be a) decreasing term b) increasing term c) flexible term d) level term
a
which of the following is TRUE of level term insurance? a) the policy offers non forfeiture values b) it is temporary protection c) the premium will increase or decrease based on current interest rates d) the policy endows at age 100
b
which of the following types of insurance products would be appropriate for an individual with a low income and high insurance needs? a) a variable annuity b) term insurance c) straight whole life d) paid-up at 65 insurance
b
An employee dies having 6 quarters of coverage during the previous 13-quarter period. What status of coverage does the employee have under Social Security? a) fully insured b) uninsured c) conditionally insured d) currently insured
d
An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request? a) 3 days b) 5 days c) 10 days d) 30 days
a
The principle of an annuity in cancellation or insurance policies applies to which of the following? a) insurers and their agents b) the insured c) the department d) beneficiaries
a
Which of the following best describes industrial life insurance? a) $10,000 or more in coverage and premiums paid by mail b) $50,000 minimum coverage and premiums collected by agent c) $2,000 or less in coverage and premiums collected by agent d) $5,000 or less in coverage and premiums paid by mail
c
Which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy? a) a guaranteed insurability rider b) a covered peril rider c) an accidental death rider d) a double indemnity rider
c
S set up an individual retirement account that her employer is now contributing to. Her employer's contributions are not included in her gross income. What kind of retirement plan does S have? a) 401(k) b) HR-10 (keogh) c) SIMPLE d) Simplified Employee Pension (SEP)
d
according to the life insurance replacement regulations, which of the following would be an example of policy replacement? a) a term policy expires, and the insured buys another term life policy b) term insurance is changed to a whole life policy c) a lapsed policy is reinstated within a specific timeframe d) a policy is reissued with a reduction in cash value
d
the entire contract includes all of the following EXCEPT a) a buyer's guide b) the life insurance policy c) a copy of the application d) any riders or amendments
a
Considering the principles of liquidity, how would the policyowner use today's cash values in a life insurance policy? a) fund a retirement b) use it for emergency expenses c) secure a car loan next year d) make a down payment on a home in 5 years
b
Which of the following is a provision found in life insurance policies? a) payor benefit b) reinstatement c) return of premium d) guaranteed insurability
b
Which of the following would NOT be eligible for coverage under key person? a) the manager of a small store b) the owner of a shop c) the executive officer of a company d) the pharmacist in a drug store
b
With Adjustable Life, the owner can change all of the following EXCEPT a) the length of time the coverage will last b) the insured c) the death benefit d) the premium
b
the commissioner issued an order without holding a bearing. The person aggrieved by this order sent a demand for a hearing 20 days ago. The hearing must be held within the next a) 10 days b) 40 days c) 60 days d) 90 days
b
Which of the following would be TRUE of both fixed-period and fixed-amount settlement options? a) the amount of payments is based on the recipient's life expectancy b) the size of installments decreases after certain period of time c) both guarantee payments for the life of the beneficiary d) both guarantee that the principal and interest will be fully paid out
c
there is a 10% penalty on the taxable portion of a deferred annuity when it is surrendered prior to what age? a) 55 1/2 b) 40 c) 65 d) 59 1/2
d
Which of the following is NOT one of the independent rating services that published guides to insurance companies' financial integrity? a) NAIC b) Fitch c) AM Best d) Moody's
a
A whole life policy is surrendered for a reduced paid up policy. The cash value in the new policy will a) decrease over time b) reduce to the pre-surrender value c) continue to increase d) remain the same
c
which of the following would be considered an example of incorporation by reference in insurance contracts? a) a copy of the original application provided to the policy owner b) a rate of amendment is later made part of the original policy c) a referred agent takes over the insurance contract d) a buyer's guide is provided to the policyholder as reference material
b
if the annuitant dies before the annuity start date, which of the following is true? a) The interest is tax-free if the beneficiary is a spouse b) The interest is not taxable c) The interest is taxable d) The interest will not be tax deferred
c
All of the following are true of a nonqualified deferred compensation plan EXCEPT a) It is a contractual agreement whereby the employee agrees to defer receipt of a portion of his compensation until retirement, disability, or death b) it does not require IRS approval c) it can be discretionary d) contributions are tax deductible
d
Which statement below is INCORRECT regarding the type of term insurance that fits best with the applicant's needs? a) applicants wishing to pay off a mortgage should they suffer a premature death might buy a decreasing term plan b) employers looking to provide cost effective group life insurance for their employees may choose annual renewable term c) applicants who may require a larger death benefit in the future should buy convertible increasing term d) applicants concerned with the increasing cost of living should purchase increasing term
c
Upon surrender of a life insurance policy, any cash value accumulated in excess of the premium payments is a) not taxed b) taxed as income on 50% of the excess c) assessed a fine of 10% of the excess d) taxed as ordinary income
d
all of the following are true regarding the federal Fair Credit Report Act EXCEPT a) insurers are not required to give customers a copy of the report b) it applies to credit reports ordered in connection with insurance, banking and employment c) the customer must be notified if adverse action is taken as a result of a report d) reports may be sent to anyone who requests one
d
A married couple purchases a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. Which policy rider should their agent recommend? a) automatic premium loan b) waiver of premium c) payor benefit d) guaranteed insurability
c
Prior to completing a new application for life insurance or an annuity, the agent must determine a) whether or not the applicant is insurable b) if the applicant can afford the coverage c) whether or not replacement is involved d) the applicant's probable status as an insured
c
Which of the following is NOT a standard exclusion in life insurance policies? a) war and military services b) aviation c) disability d) hazardous occupation
c
when a life insurance policy is delivered and there is no premium submitted with the application, the insured must sign a) a statement of good intentions b) a statement of continued good faith c) a statement of good health d) a statement of unconditional insurability
c
What is the purpose of key-person insurance? a) to give senior managers the ability to purchase shares in the business b) to cover decreased business revenues as a result of the death of a key employee c) to provide key employees with life insurance coverage d) to provide retirement benefits to key employees
b
Which of the following is a person, other than an officer or employee of the ceding insurer, who solicits, negotiates, or places reinsurance cessions or retro-cessions on behalf of a ceding insurer? a) Mutual insurers b) fraternal benefit societies c) reciprocal insurers d) stock insurers
c
what effect all the long-term care (LTC) rider have on the death benefit of a life insurance policy if LTC benefits were paid to the insured? a) not affect the amount payable to the beneficiary b) eliminate the death benefit c) reduce the death benefit d) increase the death benefit by the amount paid into the LTC
c
A married couple wants to include the entire family in their whole life policy under one rider. Which of the following riders will help them achieve their goal? a) other-insured term b) inclusive term c) children's term d) family term
d
All of the following are true of annually renewable term insurance EXCEPT a) proof of insurability must be provided at each renewal b) the premium increases every year c) the death benefit remains level d) the policy must be renewed no matter what happens to one's healtg
d
Dividends received on participation life insurance policies are a) taxable because they are a return on your investment b) not taxable because they are a return on your investment c) taxable because they are a return of unused premiums d) not taxable because they are a return of unused premiums
d
An insured decides to surrender his Whole Life insurance policy. The cash value at surrender is higher than the premiums paid into the policy, due to interest. What part of the surrender value would be income taxable? a) the entire cash amount b) the difference between the premiums paid and the cash value c) nothing d) the amount equal to the premiums paid
b
which of the following is NOT an allowable reason for policy cancellation prior to its expiration date? a) substantial change in the risk assumed by the insurer b) nonpayment of premium c) any misrepresentation by the insured d) attainment of the limiting age
c
If the commissioner disapproves a form used by an insurer, the use of the form must be discontinued within the maximum of how many days? a) immediately b) 10 days c) 30 days d) 90 days
d
What does the application of contract of adhesion mean? a) the holder of the contract has the ultimate power of promise b) the insurer may go to another for representation c) it makes sure that the insured does not get more than the value of the loss d) since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured
d
Among people in the same class and life expectancy, which of the following factors can be used to influence premium rates? a) ancestry b) marital status c) occupation d) race
c
which of the following is true regarding a joint life annuity? a) The payments go to the surviving annuitant after the first death b) The payments stop at the first death c) The payments stop at the last death d) The payments go to a beneficiary upon the last death
b
Which of the following is consideration on part of an insurer? a) paying the premium b) underwriting c) paying a claim d) decreasing premium amounts
c
which of the following fares the investment risk in a variable life insurance policy? a) the policyowner b) the agent c) the insurer d) the financial adviseo
a
