WFG Final UPDATED Actual Exam Questions and CORRECT Answers
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Course
WFG
Institution
WFG
WFG Final UPDATED Actual Exam
Questions and CORRECT Answers
John owns an insurance policy that gives him the right to share in the insurer's surplus. What
kind of policy is this?
-Non-participating
-Contributory
-Participating
-Surplus - CORRECT ANSWER- "Participating".
Participating poli...
WFG Final UPDATED Actual Exam
Questions and CORRECT Answers
John owns an insurance policy that gives him the right to share in the insurer's surplus. What
kind of policy is this?
-Non-participating
-Contributory
-Participating
-Surplus - CORRECT ANSWER✔✔- "Participating".
Participating policies give the policyowner the right to
share in the insurer's surplus.
Which of the following is NOT a benefit of insurance?
-Reduces the uncertainty of loss exposures
-Losses due to fraud are eliminated
-Makes a loss whole again
-Source of investment funds - CORRECT ANSWER✔✔- "Losses due to fraud are
eliminated"
is NOT a
benefit of insurance.
What is a participating life insurance policy?
-Contract that allows the policyowner to receive a share of surplus in the form of
policy dividends
-Agreement that allows two or more beneficiaries to share in the death benefit
-Agreement that insures two or more lives
,-Contract that gives beneficiaries the right to participate in any dividends - CORRECT
ANSWER✔✔- "Contract that allows the policyowner to receive a share of surplus in the
form of policy dividends"
A participating life insurance policy is defined as a contract that allows the policyowner to
receive a
share of surplus in the form of policy dividends.
Which of the following is a type of insurance where an insurer transfers
loss exposures from policies written for its insureds?
An insurance policy is a contract where one party promises to indemnify another against loss
that arises from an unknown event.
Which of the following statements regarding a life insurance policy
dividend is TRUE?
-It represents the build-up of cash value in a permanent insurance policy
-It is a stockholders return on his investment in the company
-It represents a refund of overcharged premium in a non-participating whole life
policy
-It is the distribution of excess of funds accumulated by the insurer on
participating policies - CORRECT ANSWER✔✔- "It is the distribution of excess of funds
accumulated by the insurer on
participating policies"
Dividends paid to policyowners of participating
contracts represent a refund of excess premiums charged.
, Remember, since the premiums were initially paid with after-tax dollars, there is no income
tax consequence to the policyowner.
One important function of an insurance company is to identify and sell
to potential customers. Which of these BEST describes this function?
-Underwriting
-Regulation
-Reinsurance
-Marketing - CORRECT ANSWER✔✔- "Marketing".
Marketing can be best defined as identifying and selling to potential
customers.
.
Which of the following is an insurer established by a parent company
for the purpose of insuring the parent company's loss exposures?
An insurer established and owned by a parent firm for the purpose of insuring the parent
firm's loss exposures is
known as a captive insurer.
AAA Insurance Company has transferred a portion of its loss exposure to BBB Insurance
Company. In this reinsurance transaction, what is AAA Insurance Company called?
-Primary insurer
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