Exam (elaborations)
WEBCE Test Questions And Answers With Latest Updates 2024/2025
- Course
- Institution
WEBCE Test Questions And Answers With Latest Updates 2024/2025 WEBCE Test Questions And Answers With Latest Updates 2024/2025
[Show more]
1 review
By: cedarvalleyrvpark • 1 year ago
not enough info
Content preview
WEBCE Test Questions And Answers With Latest Updates 2022 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 inve sts his life savings in the stock market -ralph takes a second mortgage on his house and uses the p roceeds to gamble -wanting better job security, ron cashes in his life insurance to start his own business correct answer: knowing that his family is depending on him, frank wants to insure his own life Only pure risk is insurable. Pure risk may only result in a loss, unlike speculative risk which may result in a gain. Agent jill received a letter from the department of insurance asking her to submit verification of having completed the continued education requirements for the previous licensing period. Three weeks later, the department sent another letter. Which penalty may the department impose if jill has still not responded to their request a month later? Correct answer: a fine up to $100 per day per violation A producer has 30 days to respond to a written i nquiry from the department Jim's policy expired due to nonp ayment of premium. His agent sends him a statement the following month without notice of the lapse. If jim pays the premium and later suffers a loss for which he files a claim, what will prevent the insurer from denying the claim? -estoppel -utmost good faith -reasonable expectations -waiver correct answer: estoppel Bbc insurers filed premium rates for its new line of variable products on january 15. Within how many days must the commissioner approve or disapprove the rates? Correct answer: 30 days All rate filings are subject to a 30 -day waiting period before they become effective. The commissioner of insurance can examine the business accounts, transactions, and records of insurers and producers as often as necessary, but must do so at least once in h ow many years? Correct answer: 5 ye ars Acme insurance and apogee insurance agree to offer different premium rates for persons of equal risk within a particular class. They also agree to limit benefits paid to insureds within this class if the insureds live within certain counties of pa. What are acme and apogee engaging in? -acceptable marketing and underwriting practices -unfair and prohibited business practices -insurance fraud -false advertising correct answer: they are engaging in unfair and prohibite d business practices They are agreeing to unreasonable restraint of trade in insurance business, and they are engaging in unfair discrimination Which of the following is not a remedy available to the pa commissioner of insurance for committing an unfair method of competition? -imprisonment -cease and desist order -suspension of license -revocation of license correct answer: imprisonment is not a punishment for committing an unfair method of competition You cannot be arrested for committing an unfair method of competition Which of the follow ing is not an unfair claims settlement practice if committed by an insurance company in pa? -failing to pr omptly acknowledge communications about claims -failing to promptly settle a claim for which liability is uncertain -appealing from an arbitration award in favor of an insured to compel the insured to accept a lower settlement -failing to affirm or deny c overage within a reasonable time after completing a claim investigation correct answer: ailing to promptly settle a claim for which liability is uncertain is not an unfair claims settlement practice Jeff is a licensed insurance producer in both pa and ny. He is charged with embezzlement in ny, and his first pretrial hearing is set for march 1. He must notify the pa commissioner of insurance within how many days of this hearing? Correct answer: jeff has 30 days to notify the pa commissioner of insurance of the disciplinary action being taken against him Which of the following is not an unfair claims settlement practice if committed by an insurance company in pa? -failing to promptly acknowledge communications about claims -failing to promptly settle a clai m for which liability is uncertain -offering to settle claims for less than due to encourage litigation -raising policy defenses to reduce a claim correct answer : failing to promptly settle a claim for which liability is uncertain is not an unfair claims s ettlement practice Stacy is a captive agent for best rates insurance company. Her agency contract gives her permission to print and use business cards with the company's logo and submit applications for its policy. What type of authority does stacy have t o take these actions? Correct answer: stacy has express authority due to the contract between her and the insurance company specifically allowing her act in such a way To boost her sales at the end of the year, agent trudy started offering potential clients a $250 cash gift card in exchange for purchasing a life insurance policy. Which ethical sales practice has she violated? -twisting -churning -rebating -false information correct answer: rebat ing Its illegal to offer gifts in exchange for the purchase of an insurance policy Which of the following is not a power granted to the pa commissioner of insurance? -licensing producers and companies -enforcing insurance laws -issuing regulations to adminis ter insurance laws -prosecuting individuals for violating insurance laws correct answer: the pa commissioner of insurance cannot prosecute individuals for violating insurance laws Which is not necessary to create a legal contract? -consideration -offer -warranty -acceptance correct answer: warranty is not necessary to create a legal contract The federal risk retention act of 1986 applies to which bus iness? -self-insuring business -re-insurers -credit life insurance companies -high-risk business insurers correct answer: the federal risk retention act of 1986 applies to self -insuring businesses Jeremy has had an individual health insurance policy for many years because of his family's history of cancer. The tendency of someone like jeremy to buy and r etain insurance is known as: -implied selection -adverse selection -exposure reduction -risk avoidance correct answer: his tendency to buy and retain insurance is known as adverse selection With respect to social security benefits, what is a worker's primary insurance amount (pia)? -the amount of retirement benefit the worker will receive at their full retirement age -the total amount of money a person earned during their lifetime -the amou nt payable to the surviving spouse after the worker's death -the amount of retirement and disability benefit payable t o the worker and their spouse correct answer: a worker's primary insurance amount is the amount of retirement benefit the worker will receive at their full retirement age A type of life insurance that covers two people and only pays the death benefit upon the second insured's death is cal led:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Nipsey. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78140 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now