WebCE Exam Bundle (Graded A)

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...

In general, what is the earliest age at which a person can take a distribution from a qualified plan without a tax penalty? - Answer- 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 enco...

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 licen...

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 - Answer- C) The inability...

Risk - Answer- Chance of loss Loss - Answer- Unplanned reduction of economic value Peril - Answer- cause of loss Hazard - Answer- a condition that increases the chance of peril Risk Transfer - Answer- buying insurance to shift the risk to insurance company Underwriting - Answer- asses...

Agent Thompson received a letter from the Department of Insurance asking her to provide proof of completing the continuing education requirements. Within how many days must Agent Thompson respond to the Department's inquiry? 20 30 10 45 - Answer- 10 days Abby lives in Ohio, where she is li...

Representations and Warranties - Answer- 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 - Answer- Two related in...

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...

What is the underwriter's goal? - Answer- 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 work for a...

Which medical plan covers doctor visits while the insured is in the hospital and physical therapy treatments following release from the hospital? limited medical policy basic hospital expense policy comprehensive major medical insurance supplementary major medical insurance - Answer- comprehen...

Indirect Loss - Answer- 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 - Answer- An i...

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? - Answer- risk avoidance Which of the follow...

What is the Primary Goal of Long Term Care - Answer- To maintain functionality Which of the following most precisely defines the fundamentals of self-care and the basic tasks of life? - Answer- Activities of daily living Long Term Care occurs only in nursing facilities. - Answer- False On w...

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 - Answer- a time element ...