WebCE Insurance Exam with All Correct & 100% Verified
Answers |Actual Complete Update |Already Graded A+
1. Which of the following exempted insurance companies from federal antitrust legislation?
✔Correct Answer-the McCarran-Ferguson Act
2. Which of the following has primary responsibility for regulating the insurance industry?
a. the states ✔Correct Answer-
Which statement about the NAIC is correct? ✔Correct Answer-The NAIC prepares model laws,
regulations, and guidelines for adoption by the states.
4. The NAIC issued a model law on long-term care insurance. Which statement about the model
law's effectiveness is correct? ✔Correct Answer-The model law becomes effective in a state if
approved by the state legislature.
Which statement about life insurance illustrations is correct? ✔Correct Answer-Illustrations
must include the company's name, the date the illustration was prepared, initial death benefit,
and the name, age, and gender of the proposed insured.
2. Which of the following provides general information about life insurance policies to potential
buyers? ✔Correct Answer-the Buyer's Guide
3. Which of the following is the Gramm-Leach-Bliley Act primarily aimed at regulating?
✔Correct Answer-the disclosure of personal financial information to third parties
4. What is the purpose of the Producer Database? ✔Correct Answer-streamline producer
licensing procedures
5. For how long must an organization maintain a record of a person's request to be placed on a
do-not-call list? ✔Correct Answer-5 years
1. Which of the following must be considered in making a suitable fixed annuity
recommendation to a customer? ✔Correct Answer-a. the customer's financial status
b. the customer's tax status
c. the customer's investment objectives
d. all of the above
Which of the following is not a prohibited practice? ✔Correct Answer-giving a gift of nominal
value to an insurance applicant
, Which of the following terms refers to the unethical and illegal practice of making a misleading
statement about an insurance policy to induce a person to buy a policy with another insurer?
✔Correct Answer-twisting
When meeting with a prospect to discuss disability income insurance, Agent Tyler makes
disparaging comments about the financial stability and reputation of a competitor to dissuade
the prospect from purchasing its policies. Which unfair trade practice has Agent Tyler
committed? ✔Correct Answer-defamation
What type of authority exists when a reasonable consumer would infer from the circumstances
that the agent has authority to act on behalf of the principal? ✔Correct Answer-implied
authority
Which of the following is the most severe step a state insurance department can take in
disciplining an insurer? ✔Correct Answer-liquidation
Which of the following is not an example of an unfair claims practice? ✔Correct Answer-
setting a time limit for submitting proof of loss
Sam was involved in a car accident. The other driver told Sam that the two of them should
agree on a settlement now because the longer Sam waited, the more it was going to cost him.
What should Sam do? ✔Correct Answer-decline because of his policy's cooperation provisions
Norman is involved in filing a claim for a loss that is large and very complex. He feels that if he
handles it himself, there is a good chance he will end up with considerably less than the loss
warrants. Which of the following should Norman hire to help him with the claim? ✔Correct
Answer-public adjuster
Jamie has a liability policy with ABC insurance. He is being sued for damages by Margie, who is
also an ABC policyholder. Which statement best describes ABC's duties? ✔Correct Answer-It
has a higher duty to Jamie.
A minitrial is similar to arbitration in that the findings of the third party are always binding.
✔Correct Answer-False
Which of the following statements regarding class actions is not true? ✔Correct Answer-An
injured party cannot become a member of the class without making a formal request to the
court.
Which statement is true about arbitration? ✔Correct Answer-The submission agreement is a
binding contract.
How will a court interpret an ambiguous provision in an insurance policy? ✔Correct Answer-A
court will always interpret ambiguous provisions in favor of the insured.
Answers |Actual Complete Update |Already Graded A+
1. Which of the following exempted insurance companies from federal antitrust legislation?
✔Correct Answer-the McCarran-Ferguson Act
2. Which of the following has primary responsibility for regulating the insurance industry?
a. the states ✔Correct Answer-
Which statement about the NAIC is correct? ✔Correct Answer-The NAIC prepares model laws,
regulations, and guidelines for adoption by the states.
4. The NAIC issued a model law on long-term care insurance. Which statement about the model
law's effectiveness is correct? ✔Correct Answer-The model law becomes effective in a state if
approved by the state legislature.
Which statement about life insurance illustrations is correct? ✔Correct Answer-Illustrations
must include the company's name, the date the illustration was prepared, initial death benefit,
and the name, age, and gender of the proposed insured.
2. Which of the following provides general information about life insurance policies to potential
buyers? ✔Correct Answer-the Buyer's Guide
3. Which of the following is the Gramm-Leach-Bliley Act primarily aimed at regulating?
✔Correct Answer-the disclosure of personal financial information to third parties
4. What is the purpose of the Producer Database? ✔Correct Answer-streamline producer
licensing procedures
5. For how long must an organization maintain a record of a person's request to be placed on a
do-not-call list? ✔Correct Answer-5 years
1. Which of the following must be considered in making a suitable fixed annuity
recommendation to a customer? ✔Correct Answer-a. the customer's financial status
b. the customer's tax status
c. the customer's investment objectives
d. all of the above
Which of the following is not a prohibited practice? ✔Correct Answer-giving a gift of nominal
value to an insurance applicant
, Which of the following terms refers to the unethical and illegal practice of making a misleading
statement about an insurance policy to induce a person to buy a policy with another insurer?
✔Correct Answer-twisting
When meeting with a prospect to discuss disability income insurance, Agent Tyler makes
disparaging comments about the financial stability and reputation of a competitor to dissuade
the prospect from purchasing its policies. Which unfair trade practice has Agent Tyler
committed? ✔Correct Answer-defamation
What type of authority exists when a reasonable consumer would infer from the circumstances
that the agent has authority to act on behalf of the principal? ✔Correct Answer-implied
authority
Which of the following is the most severe step a state insurance department can take in
disciplining an insurer? ✔Correct Answer-liquidation
Which of the following is not an example of an unfair claims practice? ✔Correct Answer-
setting a time limit for submitting proof of loss
Sam was involved in a car accident. The other driver told Sam that the two of them should
agree on a settlement now because the longer Sam waited, the more it was going to cost him.
What should Sam do? ✔Correct Answer-decline because of his policy's cooperation provisions
Norman is involved in filing a claim for a loss that is large and very complex. He feels that if he
handles it himself, there is a good chance he will end up with considerably less than the loss
warrants. Which of the following should Norman hire to help him with the claim? ✔Correct
Answer-public adjuster
Jamie has a liability policy with ABC insurance. He is being sued for damages by Margie, who is
also an ABC policyholder. Which statement best describes ABC's duties? ✔Correct Answer-It
has a higher duty to Jamie.
A minitrial is similar to arbitration in that the findings of the third party are always binding.
✔Correct Answer-False
Which of the following statements regarding class actions is not true? ✔Correct Answer-An
injured party cannot become a member of the class without making a formal request to the
court.
Which statement is true about arbitration? ✔Correct Answer-The submission agreement is a
binding contract.
How will a court interpret an ambiguous provision in an insurance policy? ✔Correct Answer-A
court will always interpret ambiguous provisions in favor of the insured.
