WI Life Insurance Law Test

Question 1

True or False
Stranger-oriented life insurance in WI is legal if a WI resident

Answer 1

False

Question 2

True or False
In order to sell variable products you must have your intermediaries license, WI Variable Life and Annuities license & a securities license

Answer 2

True

Question 3

True or False
Any variable universal product sold in WI must state that the dollar amount of benefits may decrease or increase

Answer 3

True

Question 4

True or False
In a variable universal life insurance contract, the individual must make yearly payments until the stated age of 100

Answer 4

False

Question 5

True or False
If a group life insurance policy is being replaced, replacement forms do not need to be completed

Answer 5

True

Question 6

True or False
The maximum amount of life insurance available from the State Life Insurance fund is $1,000

Answer 6

False

Question 7

True or False
A policy summary is given to the applicant for insurance before the application is written

Answer 7

False

Question 8

True or False
If an insurance company has paid a dividend for the past 10 years, they may state that dividends are guaranteed in their projection

Answer 8

False

Question 9

True or False
If an Average Annual Rate of Return Index needs to be included in the sales presentation, it must show the figures for 10 & 20 years

Answer 9

True

Question 10

True or False
An insurance intermediary must keep transactions with clients for 3 years

Answer 10

True

Question 11

What must be given to the individual when the policy is delivered?

Answer 11

A policy summary

Question 12

What life insurance policy offers flexibility of the investment cash values, death benefit & premium?

Answer 12

A variable universal life policy

Question 13

If a life insurance policy is being replaced in WI, the new contract, when delivered must provide a how many day right to return policy?

Answer 13

30 days

Question 14

What will show a return on an individual’s money if it was invested outside of the policy and was earning a set percentage of interest on that money?

Answer 14

Time value of money

Question 15

The only difference between what and a the cash surrender value is a surrender charge?

Answer 15

Cash value

Question 16

When the premium is due, the insured has an additional 31 days in which to pay the premium, this is called what?

Answer 16

Grace period

Question 17

Under the incontestability provision, no life insurance policy may be contested if the policy has been in force for over how many years?

Answer 17

2 years

Question 18

If age is misstated in a life insurance application, what will the insurance company do?

Answer 18

Adjust the benefits

Question 19

When a life insurance policy is sold, the applicant must be given a copy of what?

Answer 19

Buyers Guide to Life Insurance

Question 20

In life insurance, an overpayment of a premium is called what?

Answer 20

Dividend

Question 21

Which of following terms may not be used by an individual who solicits only life insurace?
A. Insurance agent
B. Intermediary
C. Financial Planner

Answer 21

C. Financial Planner

Question 22

A policy summary must contain Surrender Cost Indexes for:
A. 1 & 5 years
B. 5 & 10 years
C. 10 & 20 years
D. 25 & 50 years

Answer 22

C. 10 & 20 years

Question 23

If replaced, replacement forms must be filled out for all of the following EXCEPT:
A. Annuities
B. Credit Life
C. Variable Life
D. Variable Universal Life

Answer 23

B. Credit Life

Question 24

Replacement forms only need to be kept for how many years by the agent for the OCI?
A. 5 years
B. 4 years
C. 3 years
D. 1 year

Answer 24

C. 3 years

Question 25

All of the following are considered characteristics in determining the suitability of a policy for an individual EXCEPT: A. Current arrangement of assets B. Income C. Race D. Risk planning philosophy

Answer 25

C. Race

Question 26

According to WI law regarding AIDS, what can the insurance company do?

Answer 26

In individual life insurance, the insurance company may require an AIDS test

Question 27

The State Life Fund offers which of the following maximum amounts of life insurance? A. $1,000 B. $5,000 C. $10,000 D. $25,000

Answer 27

C. $10,000

Question 28

All of the following are considered to be advertisements EXCEPT: A. Rate Charts B. Billboards C. Sales Talks D. Packaging

Answer 28

A. Rate Charts

Question 29

How many days does WI require as far as days for right to return if replacement is involved?

Answer 29

30 days

Question 30

If this is designated, no policy loans may be taken out, or a change of beneficiary may not take place unless we have written permission from the: A. Beneficiary B. Irrevocable Beneficiary C. Insurance Commissioner D. Estoppel

Answer 30

B. Irrevocable Beneficiary

Question 31

In a variable life policy, the general marketing plan is designed to protect the: A. Insurance company B. FDIC C. Policyholder D. Insurance Commissioner

Answer 31

C. Policyholder

Question 32

When an insurance company receives an application from the agent, and replacement is involved, that insurance company has how many days to notify the company being replaced that their policy might be or is going to be replaced? A. 5 days B. 10 days C. 20 days D. 30 days

Answer 32

A. 5 days

Question 33

Who is the individual that has the final decision on whether a policy is suitability for a client or not? A. Individual Applicant B. Insurance Commissioner C. Insurance Company D. Insurance Agent

Answer 33

D. Insurance Agent

Question 34

Who was the 13th president of the United States? A. Millard Fillmore B. James Polk C. Andrew Jackson D. Teddy Roosevelt

Answer 34

A. Millard Fillmore