WEBCE - COMMERCIAL LINES 101 ACTUAL
QUESTIONS & VERIFIED ANSWERS
WhatAisAtheAunderwriter'sAgoal?A-ACORRECTAANSWER-
ToAwriteAaAbookAofAbusinessAinAwhichAtheAactualAlossesAapproximateAtheAexpectedAlosses.
GertrudeAisAgoingAtoAbecomeAanAinsuranceAagent.ASheAwouldAlikeAtoAworkAinAanAagencyAthatArepre
sentsAmanyAdifferentAinsuranceAcompanies.AGertrudeAwillAgoAtoAworkAforAa(n)A-
ACORRECTAANSWER-IndependentAagency
WhenAaAclientAsuffersAaAloss,AMegaInsurersAisAexpectedAtoArespondApromptlyAtoAsettleAtheAresulti
ngAclaim.ADependingAonAtheAlineAofAinsurance,AclaimAcostsAgenerallyAconsumeAbetweenA50AandA9
0ApercentAof:A-ACORRECTAANSWER-TheApremiumAdollar.
AndersonAAutoAInsuranceACompanyAhasAestablishedAitsArates,AandAtheAratesAareAdeemedAtoAbeAfai
rAbyAtheAinsuranceAregulatorsAinAtheAstatesAwhereAAndersonAdoesAbusiness.AAndersonAisAveryAcon
cernedAaboutAsettingAadequateAratesAbecauseAinadequateAratesAcanAleadAto:A-
ACORRECTAANSWER-Anderson'sAinsolvency.
WhatAroleAdoesAaAstateAinsuranceAdepartmentAplayAinAtheAregulationAofApolicyAforms?A-
ACORRECTAANSWER-TheAstateAinsuranceAdepartmentAapprovesAtheAforms.
GrandAInsuranceAhasAaAnumberAofAclaimsAthatAareAbeingAprocessed,AwithAanAestimatedAvalueAofA$
4Amillion.AThisAestimateAisAknownAasAthe:A-ACORRECTAANSWER-LossAreserves.
Kevin,AtheAownerAofAABCAContractors,AisAissuedAaAcommercialAgeneralAliabilityApolicyAbyASpeedyAIn
surance.ATheApolicyAstatesAthatASpeedyAInsuranceAagreesAtoApayAforAallAliabilityAarisingAfromAbodil
yAinjuryAorApropertyAdamageAthatAoccursAduringAtheApolicyAperiod.AThisAisAfoundAinAtheA________
_________AofAtheApolicy:A-ACORRECTAANSWER-InsuringAagreement.
Frank,AaAsmallAbusinessAowner,AisAupsetAbecauseAhisAcommercialAliabilityApolicyAisAfilledAwithAexclu
sions.AHisAagentAshouldApointAoutAallAtheAreasonsAforAtheAexclusions.AWhichAofAtheAfollowingAisANO
TAaAreasonAforAtheAexclusions?A-ACORRECTAANSWER-
TheAexclusionsAhelpAkeepAinsurerAprofitsAhigh.
AndyAAgentAtellsACarrieABusinessownerAthatAherAbusinessAautoApolicyAwillAbeAwrittenAonAaAstanda
rdAform,AendorsedAwithAaAstate-
specificAendorsementAtoAtailorAcoverageAforAherAspecificAneeds.AAndyAtellsACarrieAthatAtheAstandar
dAformAisAadvantageousAbecause:A-ACORRECTAANSWER-
QUESTIONS & VERIFIED ANSWERS
WhatAisAtheAunderwriter'sAgoal?A-ACORRECTAANSWER-
ToAwriteAaAbookAofAbusinessAinAwhichAtheAactualAlossesAapproximateAtheAexpectedAlosses.
GertrudeAisAgoingAtoAbecomeAanAinsuranceAagent.ASheAwouldAlikeAtoAworkAinAanAagencyAthatArepre
sentsAmanyAdifferentAinsuranceAcompanies.AGertrudeAwillAgoAtoAworkAforAa(n)A-
ACORRECTAANSWER-IndependentAagency
WhenAaAclientAsuffersAaAloss,AMegaInsurersAisAexpectedAtoArespondApromptlyAtoAsettleAtheAresulti
ngAclaim.ADependingAonAtheAlineAofAinsurance,AclaimAcostsAgenerallyAconsumeAbetweenA50AandA9
0ApercentAof:A-ACORRECTAANSWER-TheApremiumAdollar.
AndersonAAutoAInsuranceACompanyAhasAestablishedAitsArates,AandAtheAratesAareAdeemedAtoAbeAfai
rAbyAtheAinsuranceAregulatorsAinAtheAstatesAwhereAAndersonAdoesAbusiness.AAndersonAisAveryAcon
cernedAaboutAsettingAadequateAratesAbecauseAinadequateAratesAcanAleadAto:A-
ACORRECTAANSWER-Anderson'sAinsolvency.
WhatAroleAdoesAaAstateAinsuranceAdepartmentAplayAinAtheAregulationAofApolicyAforms?A-
ACORRECTAANSWER-TheAstateAinsuranceAdepartmentAapprovesAtheAforms.
GrandAInsuranceAhasAaAnumberAofAclaimsAthatAareAbeingAprocessed,AwithAanAestimatedAvalueAofA$
4Amillion.AThisAestimateAisAknownAasAthe:A-ACORRECTAANSWER-LossAreserves.
Kevin,AtheAownerAofAABCAContractors,AisAissuedAaAcommercialAgeneralAliabilityApolicyAbyASpeedyAIn
surance.ATheApolicyAstatesAthatASpeedyAInsuranceAagreesAtoApayAforAallAliabilityAarisingAfromAbodil
yAinjuryAorApropertyAdamageAthatAoccursAduringAtheApolicyAperiod.AThisAisAfoundAinAtheA________
_________AofAtheApolicy:A-ACORRECTAANSWER-InsuringAagreement.
Frank,AaAsmallAbusinessAowner,AisAupsetAbecauseAhisAcommercialAliabilityApolicyAisAfilledAwithAexclu
sions.AHisAagentAshouldApointAoutAallAtheAreasonsAforAtheAexclusions.AWhichAofAtheAfollowingAisANO
TAaAreasonAforAtheAexclusions?A-ACORRECTAANSWER-
TheAexclusionsAhelpAkeepAinsurerAprofitsAhigh.
AndyAAgentAtellsACarrieABusinessownerAthatAherAbusinessAautoApolicyAwillAbeAwrittenAonAaAstanda
rdAform,AendorsedAwithAaAstate-
specificAendorsementAtoAtailorAcoverageAforAherAspecificAneeds.AAndyAtellsACarrieAthatAtheAstandar
dAformAisAadvantageousAbecause:A-ACORRECTAANSWER-