WebCE Exam |397 questions with accurate answers
A client's answers on an application for insurance are considered to be:
warranties
representations
assurances
guarantees Ans✓✓✓ representations
A life insurance application asks Steven whether he has had heart
problems. He does not answer the question even though he had heart
surgery three years ago because he is afraid his application will be
denied. Steven's failure to give his entire medical history is:
an estoppel
a concealment
a waiver
a breach of contract Ans✓✓✓ concealment
A life insurance policy matures or endows when its guaranteed cash
value equals its face amount. With an endowment contract, when does
the policy endow?
when the insured dies
at age 120
,after age 120
well before age 120, usually at age 65 Ans✓✓✓ well before age 120,
usually at age 65
A life insurance policy that offers coverage for a specified, limited
period with no cash value building up is called a:
term life insurance policy
whole life insurance policy
graded premium whole life policy
limited pay life insurance policy Ans✓✓✓ term life insurance policy
A life insurance underwriter may request an attending physician's
statement (APS):
for general information about any medical conditions not reported on the
health section of the application
to obtain the name of a doctor who knows how the medical condition in
question is treated complete the APS
for a sworn statement from the applicant about why the condition was
left off the application
for specific details from the applicant's physician about any medical
conditions found in the health section of the application Ans✓✓✓ for
specific details from the applicant's physician about any medical
conditions found in the health section of the application
,A married couple is insured under a joint life policy. The first spouse
dies. What can the surviving spouse do with the policy?
The surviving spouse can renew the policy.
The surviving spouse can convert the policy if he or she proves
insurability.
The surviving spouse may convert the policy without proving
insurability.
The surviving spouse cannot convert the policy. Ans✓✓✓ the surviving
spouse can convert the policy if he or she proves insurability
A person who smokes heavily and drinks alcohol to excess exhibits what
kind of an insurance risk?
physical hazard
moral hazard
legal hazard
planned hazard Ans✓✓✓ physical hazard
A plan whereby a group of two or more employers from the same trade
or industry join to sponsor a group insurance plan is called a(n):
union plan
multiple employer welfare arrangement
, insured group plan
trade association arrangement Ans✓✓✓ multiple employer welfare
arrangement
A policyowner intentionally misstates material information on an
insurance application to get coverage for a lower premium. This kind of
deception is:
fraud
churning
libel
nondisclosure Ans✓✓✓ fraud
A policyowner repeatedly declines the opportunity to increase her
disability income policy benefits through its benefit increase rider. She
suffers a loss that would have been covered under the rider. May she sue
the insurance company to increase the policy benefit?
No, because the policyowner waived her right to exercise the rider
benefit when the opportunity to do so was available to her.
No, because more than 30 days have passed.
Yes; the insurer is at fault for not forcing the insured to exercise the
right.
Yes; the loss must be covered under the policy. Ans✓✓✓ No, because
the policyowner waived her right to exercise the rider benefit when the
opportunity to do so was available to her
A client's answers on an application for insurance are considered to be:
warranties
representations
assurances
guarantees Ans✓✓✓ representations
A life insurance application asks Steven whether he has had heart
problems. He does not answer the question even though he had heart
surgery three years ago because he is afraid his application will be
denied. Steven's failure to give his entire medical history is:
an estoppel
a concealment
a waiver
a breach of contract Ans✓✓✓ concealment
A life insurance policy matures or endows when its guaranteed cash
value equals its face amount. With an endowment contract, when does
the policy endow?
when the insured dies
at age 120
,after age 120
well before age 120, usually at age 65 Ans✓✓✓ well before age 120,
usually at age 65
A life insurance policy that offers coverage for a specified, limited
period with no cash value building up is called a:
term life insurance policy
whole life insurance policy
graded premium whole life policy
limited pay life insurance policy Ans✓✓✓ term life insurance policy
A life insurance underwriter may request an attending physician's
statement (APS):
for general information about any medical conditions not reported on the
health section of the application
to obtain the name of a doctor who knows how the medical condition in
question is treated complete the APS
for a sworn statement from the applicant about why the condition was
left off the application
for specific details from the applicant's physician about any medical
conditions found in the health section of the application Ans✓✓✓ for
specific details from the applicant's physician about any medical
conditions found in the health section of the application
,A married couple is insured under a joint life policy. The first spouse
dies. What can the surviving spouse do with the policy?
The surviving spouse can renew the policy.
The surviving spouse can convert the policy if he or she proves
insurability.
The surviving spouse may convert the policy without proving
insurability.
The surviving spouse cannot convert the policy. Ans✓✓✓ the surviving
spouse can convert the policy if he or she proves insurability
A person who smokes heavily and drinks alcohol to excess exhibits what
kind of an insurance risk?
physical hazard
moral hazard
legal hazard
planned hazard Ans✓✓✓ physical hazard
A plan whereby a group of two or more employers from the same trade
or industry join to sponsor a group insurance plan is called a(n):
union plan
multiple employer welfare arrangement
, insured group plan
trade association arrangement Ans✓✓✓ multiple employer welfare
arrangement
A policyowner intentionally misstates material information on an
insurance application to get coverage for a lower premium. This kind of
deception is:
fraud
churning
libel
nondisclosure Ans✓✓✓ fraud
A policyowner repeatedly declines the opportunity to increase her
disability income policy benefits through its benefit increase rider. She
suffers a loss that would have been covered under the rider. May she sue
the insurance company to increase the policy benefit?
No, because the policyowner waived her right to exercise the rider
benefit when the opportunity to do so was available to her.
No, because more than 30 days have passed.
Yes; the insurer is at fault for not forcing the insured to exercise the
right.
Yes; the loss must be covered under the policy. Ans✓✓✓ No, because
the policyowner waived her right to exercise the rider benefit when the
opportunity to do so was available to her
