2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Life Insurance Exam – Wisconsin Questions
and Correct Answers | Latest Update
Mortality
✓ -:- The rate people will die
Morbidity
✓ -:- The rate people will get sick
Peril
✓ -:- The cause of loss and the event insured against.
Ex: premature death, dependency during old age, accident, and sickness
Adverse Selection
✓ -:- The tendency for poorer than average risks to seek out insurance
Annuity
✓ -:- Annuities protect against the risk of living longer than expected.
Annuities provide a guaranteed life income to protect against the risk of
depleting retirement funds
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,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Lloyds Associations
✓ -:- Described as a market where individuals and groups gather to
exchange insurance, much like stock exchanges provide a place to buy,
sell and trade stocks
Risk Retention Groups
✓ -:- Llimited liability companies or member -owned corporations that
collectively assume and spread their members' liability risks through se lf-
insurance. All members of a risk retention group must be employed in
similar types of businesses so that they have similar liability exposures
Express Authority
✓ -:- The explicit authority granted to the agent by the principal as
written in the agency contract
Implied Authority
✓ -:- Not specifically expressed by the principal to the agent in the agency
contract, but is implicit in the agent's duties
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, 2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Apparent Authority
✓ -:- Is a situation in which the insurer gives the customer a reasonable
belief that an agent has the power and authority to bind the principal,
even in cases where the agent does not have such authority
Fair Credit Reporting Act (FCRA)
✓ -:- The Act requires consumer -reporting agencies to implement policies
and procedures to preserve the confidentiality, accuracy, relevance, and
appropriate utilization of consumer's private credit information
What cannot be in a consumer report unless for a life insurance policy of $150,000 or
more:
✓ -:- -Bankruptcies dating back more than 10 years
-Civil suits and judgments dating back more than seven years or cases in which the statute
of limitations has expired, whichever period is longer
-Tax liens dating back more than seven years
-Adverse information dating back more than seven years
-Reports of a consumer's arrests, indictments or convictions
Guaranty Associations
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Life Insurance Exam – Wisconsin Questions
and Correct Answers | Latest Update
Mortality
✓ -:- The rate people will die
Morbidity
✓ -:- The rate people will get sick
Peril
✓ -:- The cause of loss and the event insured against.
Ex: premature death, dependency during old age, accident, and sickness
Adverse Selection
✓ -:- The tendency for poorer than average risks to seek out insurance
Annuity
✓ -:- Annuities protect against the risk of living longer than expected.
Annuities provide a guaranteed life income to protect against the risk of
depleting retirement funds
1 | P a g e | G r a d e A + | 2 0 0 2 5
,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Lloyds Associations
✓ -:- Described as a market where individuals and groups gather to
exchange insurance, much like stock exchanges provide a place to buy,
sell and trade stocks
Risk Retention Groups
✓ -:- Llimited liability companies or member -owned corporations that
collectively assume and spread their members' liability risks through se lf-
insurance. All members of a risk retention group must be employed in
similar types of businesses so that they have similar liability exposures
Express Authority
✓ -:- The explicit authority granted to the agent by the principal as
written in the agency contract
Implied Authority
✓ -:- Not specifically expressed by the principal to the agent in the agency
contract, but is implicit in the agent's duties
2 | P a g e | G r a d e A + | 2 0 0 2 5
, 2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Apparent Authority
✓ -:- Is a situation in which the insurer gives the customer a reasonable
belief that an agent has the power and authority to bind the principal,
even in cases where the agent does not have such authority
Fair Credit Reporting Act (FCRA)
✓ -:- The Act requires consumer -reporting agencies to implement policies
and procedures to preserve the confidentiality, accuracy, relevance, and
appropriate utilization of consumer's private credit information
What cannot be in a consumer report unless for a life insurance policy of $150,000 or
more:
✓ -:- -Bankruptcies dating back more than 10 years
-Civil suits and judgments dating back more than seven years or cases in which the statute
of limitations has expired, whichever period is longer
-Tax liens dating back more than seven years
-Adverse information dating back more than seven years
-Reports of a consumer's arrests, indictments or convictions
Guaranty Associations
3 | P a g e | G r a d e A + | 2 0 0 2 5
