WEBCE PRACTICE EXAM WITH QUESTIONS AND ANSWERS WITH
WEBCE Practice Exam
RATIONALES (VERIFIED ANSWERS) LATEST 2024/2025
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1. A policyowner can access the cash value of many life Liquidity.
insurance policies through withdrawals, loans or pol-
icy surrender. Which of the following terms describes
the ability to easily convert life insurance into cash?
2. Life insurance policy proceeds are protected from the Spendthrift clause.
claims of creditors due to the policy's:
3. Which of the following is an insurable risk? The possibility of becom-
ing disabled and unable
to earn an income.
4. When pricing health insurance policies, the morbidity The average number of
rates indicate: persons in a large group
who are expected to be-
come disables because of
accident or sickness.
5. Those eligible for family coverage under a group med- Primary insured, spouse,
ical expense plan would typically be which of the fol- their son, and the
lowing? spouse's children from a
previous marriage.
6. Which of the following statements is correct about the Members do not need
HMO claims process? to submit claim forms for
services provided within
the network.
7. Which statement correctly describes the tax treat- They may be deducted
ment of unreimbursed medical expenses? from taxable income if
they exceed a certain per-
centage of AGI.
, WEBCE Practice Exam
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8. All of the following statements about multiple employ- The individual employers
er trusts are correct EXCEPT: each own separate group
life policies.
9. The use of permanent life insurance policy as security Collateral assignment.
for obtaining a bank loan is done through a(n):
10. Which of the following statements about variable life The cash value is not guar-
insurance is correct? anteed with variable life.
11. Which of the federal law group health plans and pro- ERISA.
tects their enrollees?
12. Which statement is correct about the tax treatment of They are subject to federal
distributions from endowment policies? income taxation.
13. When choosing a health care provider from a PPO and Use a network provider for
managing out-of-pocket expenses, the insured can: the lowest cost, or use a
non-network provider for
more flexibility.
14. Which disability would most likely qualify for a full Loss of eyesight.
benefit under the presumption of disability provision?
15. Besides being an admitted insurer, an insurer that Small employer carrier.
wants to offer a small group health insurance in Texas
must be certified by the Texas Department of Insur-
ance as an:
16. All of the following reasons that a business might To provide insurance cov-
buy life insurance represent a valid insurable interest, erage for a large-volume
EXCEPT: customers.
17. Elimination period.
, WEBCE Practice Exam
Study online at https://quizlet.com/_djsbtr
Which provision in a health insurance policy imposes
a waiting period on every claim before benefits begin?
18. Juan just purchased an individual long-term care in- Acme must allow Juan to
surance policy from Acme Insurers. The first page renew the policy every
of the policy states that it is guaranteed renewable, year, but it may increase
which means that premiums under certain
conditions.
19. What purpose does a mandatory minimum group size It spreads the risk and
serve in underwriting group health insurance? the administrative costs
among numerous partici-
pants.
20. Which payment arrangement do medical expense in- Fee-for-service.
demnity policies typically use?
21. A person who refuses to engage in risky activities like Risk avoidance.
rock climbing for fear of injury or death is demonstrat-
ing which risk management technique?
22. All of the following are standard types of term life Variable term insurance.
insurance EXCEPT:
23. An insured is injured and files a claim under his dis- On the date of injury.
ability income insurance policy. When does the elimi-
nation period begin?
24. What is the main appeal of joint life insurance? Lower cost than two sepa-
rate policies.
25. Janson Automotive is a small family-owned business Dora, who works 35 hours
with 20 employees. If it offers a small employer health a week as a full-time office
manager.
WEBCE Practice Exam
RATIONALES (VERIFIED ANSWERS) LATEST 2024/2025
Study online at https://quizlet.com/_djsbtr
1. A policyowner can access the cash value of many life Liquidity.
insurance policies through withdrawals, loans or pol-
icy surrender. Which of the following terms describes
the ability to easily convert life insurance into cash?
2. Life insurance policy proceeds are protected from the Spendthrift clause.
claims of creditors due to the policy's:
3. Which of the following is an insurable risk? The possibility of becom-
ing disabled and unable
to earn an income.
4. When pricing health insurance policies, the morbidity The average number of
rates indicate: persons in a large group
who are expected to be-
come disables because of
accident or sickness.
5. Those eligible for family coverage under a group med- Primary insured, spouse,
ical expense plan would typically be which of the fol- their son, and the
lowing? spouse's children from a
previous marriage.
6. Which of the following statements is correct about the Members do not need
HMO claims process? to submit claim forms for
services provided within
the network.
7. Which statement correctly describes the tax treat- They may be deducted
ment of unreimbursed medical expenses? from taxable income if
they exceed a certain per-
centage of AGI.
, WEBCE Practice Exam
Study online at https://quizlet.com/_djsbtr
8. All of the following statements about multiple employ- The individual employers
er trusts are correct EXCEPT: each own separate group
life policies.
9. The use of permanent life insurance policy as security Collateral assignment.
for obtaining a bank loan is done through a(n):
10. Which of the following statements about variable life The cash value is not guar-
insurance is correct? anteed with variable life.
11. Which of the federal law group health plans and pro- ERISA.
tects their enrollees?
12. Which statement is correct about the tax treatment of They are subject to federal
distributions from endowment policies? income taxation.
13. When choosing a health care provider from a PPO and Use a network provider for
managing out-of-pocket expenses, the insured can: the lowest cost, or use a
non-network provider for
more flexibility.
14. Which disability would most likely qualify for a full Loss of eyesight.
benefit under the presumption of disability provision?
15. Besides being an admitted insurer, an insurer that Small employer carrier.
wants to offer a small group health insurance in Texas
must be certified by the Texas Department of Insur-
ance as an:
16. All of the following reasons that a business might To provide insurance cov-
buy life insurance represent a valid insurable interest, erage for a large-volume
EXCEPT: customers.
17. Elimination period.
, WEBCE Practice Exam
Study online at https://quizlet.com/_djsbtr
Which provision in a health insurance policy imposes
a waiting period on every claim before benefits begin?
18. Juan just purchased an individual long-term care in- Acme must allow Juan to
surance policy from Acme Insurers. The first page renew the policy every
of the policy states that it is guaranteed renewable, year, but it may increase
which means that premiums under certain
conditions.
19. What purpose does a mandatory minimum group size It spreads the risk and
serve in underwriting group health insurance? the administrative costs
among numerous partici-
pants.
20. Which payment arrangement do medical expense in- Fee-for-service.
demnity policies typically use?
21. A person who refuses to engage in risky activities like Risk avoidance.
rock climbing for fear of injury or death is demonstrat-
ing which risk management technique?
22. All of the following are standard types of term life Variable term insurance.
insurance EXCEPT:
23. An insured is injured and files a claim under his dis- On the date of injury.
ability income insurance policy. When does the elimi-
nation period begin?
24. What is the main appeal of joint life insurance? Lower cost than two sepa-
rate policies.
25. Janson Automotive is a small family-owned business Dora, who works 35 hours
with 20 employees. If it offers a small employer health a week as a full-time office
manager.
