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WEBCE TESTS COMPILATION BUNDLE
WEBCE TESTS COMPILATION BUNDLE
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[Show more]On what basis are benefits payable under a long-term care insurance policy typically triggered? 
 
 A) the diagnosis of an acute medical condition 
B) the number and types of medications prescribed 
C) the inability to perform of medications prescribed 
D) all of the above correct answer: C) The in...
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Add to cartOn what basis are benefits payable under a long-term care insurance policy typically triggered? 
 
 A) the diagnosis of an acute medical condition 
B) the number and types of medications prescribed 
C) the inability to perform of medications prescribed 
D) all of the above correct answer: C) The in...
which of the following situations presents a situation of pure risk? 
 
-knowing that his family is depending on him, Frank wants to insure his life 
-wanting to increase his retirement savings, Saul invests his life savings in the stock market 
-Ralph takes a second mortgage on his house and uses t...
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Add to cartwhich of the following situations presents a situation of pure risk? 
 
-knowing that his family is depending on him, Frank wants to insure his life 
-wanting to increase his retirement savings, Saul invests his life savings in the stock market 
-Ralph takes a second mortgage on his house and uses t...
An insured would be prudent to rely upon health insurance to cover injuries sustained in an auto accident because medical payments coverage under a personal auto policy. (PAP CORRECT ANSWERS: has relatively low limits 
 
If a group of insureds are rated by class, they will CORRECT ANSWERS: be char...
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Add to cartAn insured would be prudent to rely upon health insurance to cover injuries sustained in an auto accident because medical payments coverage under a personal auto policy. (PAP CORRECT ANSWERS: has relatively low limits 
 
If a group of insureds are rated by class, they will CORRECT ANSWERS: be char...
Homeowners Policy Coverage A CORRECT ANSWERS: Dwelling: Insureds house and attached structures, attached garage and/or toolshed/construction materials on or next to dwelling. 
 
Homeowners Policy Coverage B CORRECT ANSWERS: Other structures: Structures not attached to dwelling, detached garage, ga...
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Add to cartHomeowners Policy Coverage A CORRECT ANSWERS: Dwelling: Insureds house and attached structures, attached garage and/or toolshed/construction materials on or next to dwelling. 
 
Homeowners Policy Coverage B CORRECT ANSWERS: Other structures: Structures not attached to dwelling, detached garage, ga...
What is difference between a Stated Amount and an Agreed Value? CORRECT ANSWERS: Methods lies in the benefit amount that is actually paid out if the insured object is destroyed or stolen. Stated - pays the lesser of the listed dollar amount or the objects cash or replacement value. Agreed - Pays th...
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Add to cartWhat is difference between a Stated Amount and an Agreed Value? CORRECT ANSWERS: Methods lies in the benefit amount that is actually paid out if the insured object is destroyed or stolen. Stated - pays the lesser of the listed dollar amount or the objects cash or replacement value. Agreed - Pays th...
Rory's parents offered to buy him a new car to take to college, but Rory turned them down because he was afraid the car would be stolen or damaged if he parked it on campus. In deciding not to own a car, what risk management technique did Rory employ? CORRECT ANSWERS: risk avoidance 
 
Which of th...
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Add to cartRory's parents offered to buy him a new car to take to college, but Rory turned them down because he was afraid the car would be stolen or damaged if he parked it on campus. In deciding not to own a car, what risk management technique did Rory employ? CORRECT ANSWERS: risk avoidance 
 
Which of th...
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A tornado severely damages one of Major Manufacturing's plants. As a result of the damage, Major Manufacturing is forced to curtail its operations during the 6 months needed to complete repairs. The resulting loss of income suffered by Major Manufacturing is referred to as CORRECT ANSWERS: a time ...
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Add to cartA tornado severely damages one of Major Manufacturing's plants. As a result of the damage, Major Manufacturing is forced to curtail its operations during the 6 months needed to complete repairs. The resulting loss of income suffered by Major Manufacturing is referred to as CORRECT ANSWERS: a time ...
1. The ethical principle, "Place the interests of others above your own," is an example of CORRECT ANSWERS: b. positive actions or results-based ethics 
 
2. Your sister escaped from an abusive husband and is hiding in your basement when her husband knocks on your door, brandishes a pistol, and a...
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Add to cart1. The ethical principle, "Place the interests of others above your own," is an example of CORRECT ANSWERS: b. positive actions or results-based ethics 
 
2. Your sister escaped from an abusive husband and is hiding in your basement when her husband knocks on your door, brandishes a pistol, and a...
Homeowners Coverage Forms: HO-1 
Homeowners Coverage Forms: HO - 2 CORRECT ANSWERS: Broad Form. Dwelling, other structures, personal property on named perils basis. Loss of use, personal liability, medical payments. Homeowners insurance policy that provides insurance coverage on the "named-peril...
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Add to cartHomeowners Coverage Forms: HO-1 
Homeowners Coverage Forms: HO - 2 CORRECT ANSWERS: Broad Form. Dwelling, other structures, personal property on named perils basis. Loss of use, personal liability, medical payments. Homeowners insurance policy that provides insurance coverage on the "named-peril...
What is the form of LTC that is non-medical and involving the most private and intimate aspects of a person's life - personal hygiene, dressing, and toileting? CORRECT ANSWERS: Custodial Care 
 
Custodial Care provides these "low-tech" services that are designed to minimize, rehabilitate, or com...
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Add to cartWhat is the form of LTC that is non-medical and involving the most private and intimate aspects of a person's life - personal hygiene, dressing, and toileting? CORRECT ANSWERS: Custodial Care 
 
Custodial Care provides these "low-tech" services that are designed to minimize, rehabilitate, or com...
What is the underwriter's goal? CORRECT ANSWERS: To write a book of business in which the actual losses approximate the expected losses. 
 
Gertrude is going to become an insurance agent. She would like to work in an agency that represents many different insurance companies. Gertrude will go to wo...
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Add to cartWhat is the underwriter's goal? CORRECT ANSWERS: To write a book of business in which the actual losses approximate the expected losses. 
 
Gertrude is going to become an insurance agent. She would like to work in an agency that represents many different insurance companies. Gertrude will go to wo...
Which of the following is characteristic of Virginia's Long-Term Care Insurance Partnership program? CORRECT ANSWERS: both I and II 
 
John's long-term care insurance partnership policy lapsed for nonpayment of premiums while he was confined in a nursing home. His coverage for that nursing home c...
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Add to cartWhich of the following is characteristic of Virginia's Long-Term Care Insurance Partnership program? CORRECT ANSWERS: both I and II 
 
John's long-term care insurance partnership policy lapsed for nonpayment of premiums while he was confined in a nursing home. His coverage for that nursing home c...
In general, what is the earliest age at which a person can take a distribution from a qualified plan without a tax penalty? CORRECT ANSWERS: 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...
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Add to cartIn general, what is the earliest age at which a person can take a distribution from a qualified plan without a tax penalty? CORRECT ANSWERS: 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...
Buying life or health insurance is an example of which risk management technique? 
 
risk avoidance 
risk reduction 
risk retention 
risk transfer CORRECT ANSWERS: risk transfer 
 
What is the mathematical concept of probability that helps insurers estimate the statistical likelihood of mortality o...
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Add to cartBuying life or health insurance is an example of which risk management technique? 
 
risk avoidance 
risk reduction 
risk retention 
risk transfer CORRECT ANSWERS: risk transfer 
 
What is the mathematical concept of probability that helps insurers estimate the statistical likelihood of mortality o...
Abby lives in Ohio, where she is licensed as an insurance producer. She wants to apply for a nonresident license in Pennsylvania. Which of the following conditions must she satisfy? 
 
 She must move to Pennsylvania. 
 She must surrender her Ohio license. 
 She must be sponsored by a producer licens...
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Add to cartAbby lives in Ohio, where she is licensed as an insurance producer. She wants to apply for a nonresident license in Pennsylvania. Which of the following conditions must she satisfy? 
 
 She must move to Pennsylvania. 
 She must surrender her Ohio license. 
 She must be sponsored by a producer licens...
All of the following are eligible to purchase a group life insurance policy EXCEPT: 
 
the Wonderful Widget Company, which employs more than 200 people 
the State Electrical Workers Union 
the Retailers Multiple Employer Trust, formed by two retailers to purchase insurance for their employees 
Stan ...
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Add to cartAll of the following are eligible to purchase a group life insurance policy EXCEPT: 
 
the Wonderful Widget Company, which employs more than 200 people 
the State Electrical Workers Union 
the Retailers Multiple Employer Trust, formed by two retailers to purchase insurance for their employees 
Stan ...
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You have been invited to your niece's wedding reception, and the invitation requests an RSVP. You really don't want to go, and you could simply decline the invitation. But you respond that you will be in attendance, and you check her bridal registry to select an appropriate gift to bring. Your dec...
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Add to cartYou have been invited to your niece's wedding reception, and the invitation requests an RSVP. You really don't want to go, and you could simply decline the invitation. But you respond that you will be in attendance, and you check her bridal registry to select an appropriate gift to bring. Your dec...
Representations and Warranties CORRECT ANSWERS: Representations are statements the applicant makes on an application that are deemed to be true to the applicant's best knowledge. Warranties are statements the insurer makes in the contract. 
 
Underwriting vs. Actuarial Departments CORRECT ANSWERS...
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Add to cartRepresentations and Warranties CORRECT ANSWERS: Representations are statements the applicant makes on an application that are deemed to be true to the applicant's best knowledge. Warranties are statements the insurer makes in the contract. 
 
Underwriting vs. Actuarial Departments CORRECT ANSWERS...
risk CORRECT ANSWERS: Chance of loss 
 
Pure risk CORRECT ANSWERS: If it's pure you can insure 
 
Speculative riak CORRECT ANSWERS: Loss or gain 
 
peril CORRECT ANSWERS: The cause of loss 
 
Life insurance peril CORRECT ANSWERS: Death 
 
Health insurance peril CORRECT ANSWERS: Illness, accid...
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Add to cartrisk CORRECT ANSWERS: Chance of loss 
 
Pure risk CORRECT ANSWERS: If it's pure you can insure 
 
Speculative riak CORRECT ANSWERS: Loss or gain 
 
peril CORRECT ANSWERS: The cause of loss 
 
Life insurance peril CORRECT ANSWERS: Death 
 
Health insurance peril CORRECT ANSWERS: Illness, accid...
Indirect Loss CORRECT ANSWERS: A secondary loss that follows from a direct loss to insured property from a covered peril. 
Ex. Hotel expenses incurred by the insured while a fire-damaged home is repaired is an indirect loss that follows the direct loss of the home. 
 
Exclusive Agency System CORRE...
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Add to cartIndirect Loss CORRECT ANSWERS: A secondary loss that follows from a direct loss to insured property from a covered peril. 
Ex. Hotel expenses incurred by the insured while a fire-damaged home is repaired is an indirect loss that follows the direct loss of the home. 
 
Exclusive Agency System CORRE...
Annuitization is CORRECT ANSWERS: Accumulated values are converted into a stream of periodic income payments. 
 
How often can payments of annuities be paid out? CORRECT ANSWERS: A specified term of years, for life, or a combination of the two. 
 
What is the reason (how has a consumer's prioriti...
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Add to cartAnnuitization is CORRECT ANSWERS: Accumulated values are converted into a stream of periodic income payments. 
 
How often can payments of annuities be paid out? CORRECT ANSWERS: A specified term of years, for life, or a combination of the two. 
 
What is the reason (how has a consumer's prioriti...
Risk CORRECT ANSWERS: Chance of loss 
 
Loss CORRECT ANSWERS: Unplanned reduction of economic value 
 
Peril CORRECT ANSWERS: cause of loss 
 
Hazard CORRECT ANSWERS: a condition that increases the chance of peril 
 
Risk Transfer CORRECT ANSWERS: buying insurance to shift the risk to insurance...
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Add to cartRisk CORRECT ANSWERS: Chance of loss 
 
Loss CORRECT ANSWERS: Unplanned reduction of economic value 
 
Peril CORRECT ANSWERS: cause of loss 
 
Hazard CORRECT ANSWERS: a condition that increases the chance of peril 
 
Risk Transfer CORRECT ANSWERS: buying insurance to shift the risk to insurance...
Risk CORRECT ANSWERS: Chance of loss 
 
5 Risk or Loss Factors CORRECT ANSWERS: 1. Risk 2. Loss 3. Exposure 4. Peril 5. Hazard 
 
Insurance allows: CORRECT ANSWERS: Individual or group to transfer over to insurance company the risk of financial loss from a destructive event 
 
Fundamental purpose...
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Add to cartRisk CORRECT ANSWERS: Chance of loss 
 
5 Risk or Loss Factors CORRECT ANSWERS: 1. Risk 2. Loss 3. Exposure 4. Peril 5. Hazard 
 
Insurance allows: CORRECT ANSWERS: Individual or group to transfer over to insurance company the risk of financial loss from a destructive event 
 
Fundamental purpose...
Risk CORRECT ANSWERS: chance of loss 
 
Loss CORRECT ANSWERS: an unplanned reduction in economic value 
 
What risk is insurable? CORRECT ANSWERS: pure risk 
 
What are the two types of risk? CORRECT ANSWERS: pure risk and speculative risk 
 
Involves the possibility of a loss? CORRECT ANSWERS:...
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Add to cartRisk CORRECT ANSWERS: chance of loss 
 
Loss CORRECT ANSWERS: an unplanned reduction in economic value 
 
What risk is insurable? CORRECT ANSWERS: pure risk 
 
What are the two types of risk? CORRECT ANSWERS: pure risk and speculative risk 
 
Involves the possibility of a loss? CORRECT ANSWERS:...
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