WEBCE EXAM SCRIPT 2026 FULL QUESTIONS
AND CORRECT ANSWERS
◉ 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 licensed in Pennsylvania.
She must show her Ohio license is in good standing. Answer: She must
show her Ohio license is in good standing
◉ The requirement that an insurable interest must exist when life
insurance is purchased is intended to prevent people from doing which
of the following?
using life insurance to fund future cash needs
using life insurance as a speculative investment on another person's
life
overusing life insurance
, designating an ineligible person as the policy beneficiary. Answer: using
life insurance as a speculative interest on another person's life
◉ Which one of the following best describes a policy that has a
relatively low face amount and has premiums that are paid to an
insurance agent who generally calls on the policyowner at home to
collect them?
group life insurance
industrial life insurance
ordinary term insurance
ordinary whole life insurance. Answer: industrial life insurance
◉ Sylvia's insurer guarantees a fixed death benefit for the policy she
owns. Based on this, which one of the following benefits is also most
likely guaranteed with this policy?
the policy's cash value
her ability to borrow an interest-free loan from the cash value
policy dividends
payment of premiums on Sylvia's behalf in the event of emergencies.
Answer: the policy's cash value
,◉ Carl is a policyowner who prefers to pay premiums monthly rather
than annually. How will Carl's insurance company adjust his premium to
accommodate this request?
The insurer divides the annual premium by 12 and then adds a modest
charge.
The insurer simply divides the annual premium by 12.
The insurer divides the annual premium by 12 and then reduces the
premium amount to reflect the fact that premiums will be paid
throughout the year.
The insurer divides the annual premium by 12 and then adds a modest
charge in the first policy year after which premiums equal the annual
premium divided by 12. Answer: The insurer divides the annual
premium by 12 and then adds a modest charge
◉ All of the following statements about key person life insurance are
correct, EXCEPT:
The business applies for, owns, and is the beneficiary of the policy
covering the life of a key employee.
Upon the insured employee's death, the employee's surviving family
receives the policy's death benefit.
Key person, or key employee, life insurance is an example of third-
party ownership.
, Life insurance used as key person life is normally owned by the
business rather than the insured. Answer: XXX Upon the insured
employee's death, the employee's surviving family receives the policy
benefit XXX
◉ The activities a producer performs to support the insurance company
in learning all it can about the applicant when seeking applications for
insurance are generally called:
field underwriting
fiduciary process
agency development
due diligence. Answer: field underwriting
◉ How is increasing term life insurance normally sold?
as an endorsement
as a permanent insurance policy
as a stand-alone term life insurance policy
as a rider attached to a permanent life insurance policy. Answer: as a
rider attached to a permanent insurance policy
◉ Andrea bought a $300,000 term-to-age-55 policy. All the following
statements about her policy are correct EXCEPT:
AND CORRECT ANSWERS
◉ 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 licensed in Pennsylvania.
She must show her Ohio license is in good standing. Answer: She must
show her Ohio license is in good standing
◉ The requirement that an insurable interest must exist when life
insurance is purchased is intended to prevent people from doing which
of the following?
using life insurance to fund future cash needs
using life insurance as a speculative investment on another person's
life
overusing life insurance
, designating an ineligible person as the policy beneficiary. Answer: using
life insurance as a speculative interest on another person's life
◉ Which one of the following best describes a policy that has a
relatively low face amount and has premiums that are paid to an
insurance agent who generally calls on the policyowner at home to
collect them?
group life insurance
industrial life insurance
ordinary term insurance
ordinary whole life insurance. Answer: industrial life insurance
◉ Sylvia's insurer guarantees a fixed death benefit for the policy she
owns. Based on this, which one of the following benefits is also most
likely guaranteed with this policy?
the policy's cash value
her ability to borrow an interest-free loan from the cash value
policy dividends
payment of premiums on Sylvia's behalf in the event of emergencies.
Answer: the policy's cash value
,◉ Carl is a policyowner who prefers to pay premiums monthly rather
than annually. How will Carl's insurance company adjust his premium to
accommodate this request?
The insurer divides the annual premium by 12 and then adds a modest
charge.
The insurer simply divides the annual premium by 12.
The insurer divides the annual premium by 12 and then reduces the
premium amount to reflect the fact that premiums will be paid
throughout the year.
The insurer divides the annual premium by 12 and then adds a modest
charge in the first policy year after which premiums equal the annual
premium divided by 12. Answer: The insurer divides the annual
premium by 12 and then adds a modest charge
◉ All of the following statements about key person life insurance are
correct, EXCEPT:
The business applies for, owns, and is the beneficiary of the policy
covering the life of a key employee.
Upon the insured employee's death, the employee's surviving family
receives the policy's death benefit.
Key person, or key employee, life insurance is an example of third-
party ownership.
, Life insurance used as key person life is normally owned by the
business rather than the insured. Answer: XXX Upon the insured
employee's death, the employee's surviving family receives the policy
benefit XXX
◉ The activities a producer performs to support the insurance company
in learning all it can about the applicant when seeking applications for
insurance are generally called:
field underwriting
fiduciary process
agency development
due diligence. Answer: field underwriting
◉ How is increasing term life insurance normally sold?
as an endorsement
as a permanent insurance policy
as a stand-alone term life insurance policy
as a rider attached to a permanent life insurance policy. Answer: as a
rider attached to a permanent insurance policy
◉ Andrea bought a $300,000 term-to-age-55 policy. All the following
statements about her policy are correct EXCEPT:
