Practice Exam WEBCE #2 questions well answered 2024/2025

Practice Exam WEBCE #2If Rick withdraws funds from his universal life insurance policy, what will be the effect on the policy's death benefit? - correct answer It will be reduced by the amount of the withdrawal. All of the following uses for life insurance in a business represent a valid insurable interest, EXCEPT: -Life insurance bought by businesses to cover the lives of their key employees or owners. -Life insurance used to provide funds in the event an insured key employee or partner dies. -Life insurance purchased on an important customer to make up for the financial losses that might occur when that customer dies. -Life insurance purchased by business partners to provide funds that can be used to buy out the business interest of the one who dies. - correct answer Life insurance purchased on an important customer to make up for the financial losses that might occur when that customer dies. Which optional provision addresses premiums that the insured owes at the time of the claim? - correct answer Unpaid premium. In a typical life insurance policy, the policyowner is the: - correct answer Insured. With respect to annuities, the basic purpose for the exclusion ratio is to: - correct answer Determine the non-taxable portion of each annuity payment. Which statement about a flat deductible in a major medical plan is correct? - A flat deductible is paid after the insurer pays the benefit. - A flat deductible is used only in supplemental major medical plans. - A flat deductible is used in comprehensive major medical plans. - A flat deductible is the same as a corridor deductible. - correct answer A flat deductible is used in comprehensive major medical plans.