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webce test questions Questions and
Correct Answers/ Latest Update /
Already Graded
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 invests his life savings
in the stock market
-Ralph takes a second mortgage on his house and uses the
proceeds to gamble
-wanting better job security, Ron cashes in his life insurance to start
his own business
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Ans: 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?
Ans: a fine up to $100 per day per violation
A producer has 30 days to respond to a written inquiry from the
Department
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Jim's policy expired due to nonpayment 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
Ans: 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?
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Ans: 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 how many years?
Ans: 5 years
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
webce test questions Questions and
Correct Answers/ Latest Update /
Already Graded
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 invests his life savings
in the stock market
-Ralph takes a second mortgage on his house and uses the
proceeds to gamble
-wanting better job security, Ron cashes in his life insurance to start
his own business
,2 | Page
Ans: 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?
Ans: a fine up to $100 per day per violation
A producer has 30 days to respond to a written inquiry from the
Department
,3 | Page
Jim's policy expired due to nonpayment 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
Ans: 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?
, 4 | Page
Ans: 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 how many years?
Ans: 5 years
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
