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WEBCE Practice Exam 100 % Correct Solutions 2024.
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WEBCE Practice Exam 100 % CorrectSolutions 2024
In general, what is the earliest age at which a person can take a distribution from a
qualified plan without a tax penalty? - ANS-59 1/2
Carol was 35 when she bought her deferred annuity. Now, at age 38, she wants to
withdraw funds from the contract to take a vacation. Carol is likely to encounter all of the
following consequences in making the withdrawal EXCEPT: - ANS-statutory minimum
withholding requirements
What kind of misrepresentation on an insurance application gives the insurer reason to
terminate a policy? - ANS-material fact
Which of the following riders attached to Debra's life insurance policy provides for a
monthly income to be paid if she becomes disabled? - ANS-disability income benefit
rider
In calculating their life insurance premiums, which of the following statements generally
guides insurance companies in determining the "loading" factor? - ANS-Total loading
from all policies should cover total operating costs, provide a safety margin, and
contribute to profits or surplus.
What is the main difference between ordinary whole life and limited payment whole life
insurance? - ANS-the length of time that the insured must pay premiums
Abby lives in New Mexico, where she is licensed as an insurance agent and wants to
apply for a nonresident license in Arizona. She holds a current license in good standing
in New Mexico. When applying for a license in Arizona, Abby must prove her citizenship
by submitting: - ANS-a valid driver's license
Matt takes out a life insurance policy on himself to protect his family. Matt's insurance
company may consider all of the following when underwriting his policy EXCEPT: -
ANS-his race
Under which of the following do the cash values and death benefits rise and fall on the
basis of the policy's subaccount investment performance, and for which the insurer does
, not guarantee a rate of return on the cash value invested? - ANS-variable life
To help determine how much life insurance a prospect needs, agent Smith uses the
human life value approach which is essentially based on an estimate of the prospect's: -
ANS-net future earnings discounted to a present value
Which one of the following statements about Multiple Employer Welfare Arrangements
(MEWAs) is most correct? - ANS-They are usually created by employers in the same
industry.
Which of the following best describes income payments under the period certain payout
option? - ANS-the longer the payout period, the smaller the amount of each monthly
payment
Delta Co. buys a group life insurance policy for its employees. As the plan sponsor,
what will Delta receive? - ANS-a policy
Margie owns a fixed life insurance policy. What type of death benefit is Margie
guaranteed? - ANS-The policy guarantees a fixed amount.
What is the minimum grace period required for payment on an annuity? - ANS-30 days
Which one of the following has more than "an expectancy" that he or she will receive
the death benefit under a life insurance policy? - ANS-an irrevocable beneficiary
An agent for ABC Insurance Company meets with a client. The agent shows the client
ABC's sample policies, refers to the ABC rate book, and gives the client an ABC
business card. The client assumes that ABC has appointed the agent to represent it.
What kind of authority does the agent have? - ANS-apparent authority
Which statement about variable annuity subaccounts is NOT correct? - ANS-The
insurer selects the variable subaccounts to which the contract owner's premiums are
allocated.
Stephanie is hired by ABC Insurance Company's home office. She does not have an
insurance producer's license. Which of the following duties may she perform for ABC? -
ANS-mail company correspondence for the president
The life insurance nonforfeiture option that results in the permanent continuation of cash
value life insurance with no further premiums is called the: - ANS-reduced paid-up
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