WEBCE FINAL EXAM LATEST 2023 REAL EXAM 100 QUESTIONS
AND ANSWERS
A policyowner can access the cash value of many life insurance policies through
withdrawals, loans or policy surrender. Which of the following terms describes the
ability to easily convert life insurance into cash? - ANSWER: Liquidity.
Life insurance policy proceeds are protected from the claims of creditors due to the
policy's: - ANSWER: Spendthrift clause.
Which of the following is an insurable risk? - ANSWER: The possibility of becoming
disabled and unable to earn an income.
When pricing health insurance policies, the morbidity rates indicate: - ANSWER: The
average number of persons in a large group who are expected to become disables
because of accident or sickness.
Those eligible for family coverage under a group medical expense plan would
typically be which of the following? - ANSWER: Primary insured, spouse, their son,
and the spouse's children from a previous marriage.
Which of the following statements is correct about the HMO claims process? -
ANSWER: Members do not need to submit claim forms for services provided within
the network.
Which statement correctly describes the tax treatment of unreimbursed medical
expenses? - ANSWER: They may be deducted from taxable income if they exceed a
certain percentage of AGI.
All of the following statements about multiple employer trusts are correct EXCEPT: -
ANSWER: The individual employers each own separate group life policies.
The use of permanent life insurance policy as security for obtaining a bank loan is
done through a(n): - ANSWER: Collateral assignment.
Which of the following statements about variable life insurance is correct? -
ANSWER: The cash value is not guaranteed with variable life.
Which of the federal law group health plans and protects their enrollees? - ANSWER:
ERISA.
Which statement is correct about the tax treatment of distributions from
endowment policies? - ANSWER: They are subject to federal income taxation.
, When choosing a health care provider from a PPO and managing out-of-pocket
expenses, the insured can: - ANSWER: Use a network provider for the lowest cost, or
use a non-network provider for more flexibility.
Which disability would most likely qualify for a full benefit under the presumption of
disability provision? - ANSWER: Loss of eyesight.
Besides being an admitted insurer, an insurer that wants to offer a small group
health insurance in Texas must be certified by the Texas Department of Insurance as
an: - ANSWER: Small employer carrier.
All of the following reasons that a business might buy life insurance represent a valid
insurable interest, EXCEPT: - ANSWER: To provide insurance coverage for a large-
volume customers.
Which provision in a health insurance policy imposes a waiting period on every claim
before benefits begin? - ANSWER: Elimination period.
Juan just purchased an individual long-term care insurance policy from Acme
Insurers. The first page of the policy states that it is guaranteed renewable, which
means that - ANSWER: Acme must allow Juan to renew the policy every year, but it
may increase premiums under certain conditions.
What purpose does a mandatory minimum group size serve in underwriting group
health insurance? - ANSWER: It spreads the risk and the administrative costs among
numerous participants.
Which payment arrangement do medical expense indemnity policies typically use? -
ANSWER: Fee-for-service.
A person who refuses to engage in risky activities like rock climbing for fear of injury
or death is demonstrating which risk management technique? - ANSWER: Risk
avoidance.
All of the following are standard types of term life insurance EXCEPT: - ANSWER:
Variable term insurance.
An insured is injured and files a claim under his disability income insurance policy.
When does the elimination period begin? - ANSWER: On the date of injury.
What is the main appeal of joint life insurance? - ANSWER: Lower cost than two
separate policies.
Janson Automotive is a small family-owned business with 20 employees. If it offers a
small employer health benefit plan, which of the following employees will be eligible
for coverage? - ANSWER: Dora, who works 35 hours a week as a full-time office
manager.
AND ANSWERS
A policyowner can access the cash value of many life insurance policies through
withdrawals, loans or policy surrender. Which of the following terms describes the
ability to easily convert life insurance into cash? - ANSWER: Liquidity.
Life insurance policy proceeds are protected from the claims of creditors due to the
policy's: - ANSWER: Spendthrift clause.
Which of the following is an insurable risk? - ANSWER: The possibility of becoming
disabled and unable to earn an income.
When pricing health insurance policies, the morbidity rates indicate: - ANSWER: The
average number of persons in a large group who are expected to become disables
because of accident or sickness.
Those eligible for family coverage under a group medical expense plan would
typically be which of the following? - ANSWER: Primary insured, spouse, their son,
and the spouse's children from a previous marriage.
Which of the following statements is correct about the HMO claims process? -
ANSWER: Members do not need to submit claim forms for services provided within
the network.
Which statement correctly describes the tax treatment of unreimbursed medical
expenses? - ANSWER: They may be deducted from taxable income if they exceed a
certain percentage of AGI.
All of the following statements about multiple employer trusts are correct EXCEPT: -
ANSWER: The individual employers each own separate group life policies.
The use of permanent life insurance policy as security for obtaining a bank loan is
done through a(n): - ANSWER: Collateral assignment.
Which of the following statements about variable life insurance is correct? -
ANSWER: The cash value is not guaranteed with variable life.
Which of the federal law group health plans and protects their enrollees? - ANSWER:
ERISA.
Which statement is correct about the tax treatment of distributions from
endowment policies? - ANSWER: They are subject to federal income taxation.
, When choosing a health care provider from a PPO and managing out-of-pocket
expenses, the insured can: - ANSWER: Use a network provider for the lowest cost, or
use a non-network provider for more flexibility.
Which disability would most likely qualify for a full benefit under the presumption of
disability provision? - ANSWER: Loss of eyesight.
Besides being an admitted insurer, an insurer that wants to offer a small group
health insurance in Texas must be certified by the Texas Department of Insurance as
an: - ANSWER: Small employer carrier.
All of the following reasons that a business might buy life insurance represent a valid
insurable interest, EXCEPT: - ANSWER: To provide insurance coverage for a large-
volume customers.
Which provision in a health insurance policy imposes a waiting period on every claim
before benefits begin? - ANSWER: Elimination period.
Juan just purchased an individual long-term care insurance policy from Acme
Insurers. The first page of the policy states that it is guaranteed renewable, which
means that - ANSWER: Acme must allow Juan to renew the policy every year, but it
may increase premiums under certain conditions.
What purpose does a mandatory minimum group size serve in underwriting group
health insurance? - ANSWER: It spreads the risk and the administrative costs among
numerous participants.
Which payment arrangement do medical expense indemnity policies typically use? -
ANSWER: Fee-for-service.
A person who refuses to engage in risky activities like rock climbing for fear of injury
or death is demonstrating which risk management technique? - ANSWER: Risk
avoidance.
All of the following are standard types of term life insurance EXCEPT: - ANSWER:
Variable term insurance.
An insured is injured and files a claim under his disability income insurance policy.
When does the elimination period begin? - ANSWER: On the date of injury.
What is the main appeal of joint life insurance? - ANSWER: Lower cost than two
separate policies.
Janson Automotive is a small family-owned business with 20 employees. If it offers a
small employer health benefit plan, which of the following employees will be eligible
for coverage? - ANSWER: Dora, who works 35 hours a week as a full-time office
manager.
