WEBCE Life And Health (281 Questions) With 100% Correct Verified Answers 2023

WEBCE Life And Health (281 Questions) With 100% Correct Verified Answers 2023 Representations and Warranties - Correct 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 - Correct Answer Two related insurance company functions. Through the process of _________, applications are assessed for insurability and to assign premium rates. The ________ department analyzes data to help estimate future losses and to produce rate tables. Managerial System vs. General Agency System - Correct Answer Two variations of the career agency system in which producers represent a single company. One is headed by a company employee called a general manager (GM), the other by an independent contractor called a general agent (GA). Fraternal Insurance Company - Correct Answer A non-profit form of insurance provider sponsored by an organization of people who share a common ethnic, religious, or vocational affiliation. Peril and Hazard - Correct Answer Two related general insurance terms: Peril is the immediate cause of a loss (and the event that is insured against). Hazard is any condition that increases the risk of incurring a loss. Contract of adhesion - Correct Answer A type of contract in which one party (the offeror) drafts the terms that must be accepted as-is by the offeree. Insurance policies are this type. Mutual Insurance Company - Correct Answer A form of insurance company that is owned by policyowners. May distribute policy dividends (non-taxable) through participating policies. Independent Agency System - Correct Answer An insurance distribution system in which the manager and producers are fully independent and not affiliated with any single insurer. Buyer's Guide and Policy Summary - Correct Answer Two related disclosure documents that are required by most states to be presented to life and health insurance applicants at some point during the buying process. Risk - Correct Answer A basic insurance term referring to the possibility of incurring a loss. Law of Large Numbers - Correct Answer A mathematical principle that is the basis for predicting the odds of a loss occurring in a certain population in any given year