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WEBCE TEST QUESTIONS WITH
CORRECT ANSWERS 2026
which of the following is NOT an unfair claims settlement practice if committed by
an insurance company in PA?
-failing to promptly acknowledge communications about claims
-failing to promptly settle a claim for which liability is uncertain
-offering to settle claims for less than due to encourage litigation
-raising policy defenses to reduce a claim - correct-answer -failing to promptly
settle a claim for which liability is uncertain is not an unfair claims settlement
practice
Stacy is a captive agent for best rates insurance company. Her agency contract
gives her permission to print and use business cards with the company's logo and
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submit applications for its policy. What type of authority does stacy have to take
these actions? - correct-answer -Stacy has express authority due to the contract
between her and the insurance company specifically allowing her act in such a
way
to boost her sales at the end of the year, agent Trudy started offering potential
clients a $250 cash gift card in exchange for purchasing a life insurance policy.
which ethical sales practice has she violated?
-twisting
-churning
-rebating
-false information - correct-answer -rebating
its illegal to offer gifts in exchange for the purchase of an insurance policy
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which of the following is not a power granted to the PA commissioner of
insurance?
-licensing producers and companies
-enforcing insurance laws
-issuing regulations to administer insurance laws
-prosecuting individuals for violating insurance laws - correct-answer -the PA
commissioner of insurance CANNOT prosecute individuals for violating insurance
laws
which is not necessary to create a legal contract?
-consideration
-offer
-warranty
-acceptance - correct-answer -warranty is not necessary to create a legal contract
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the federal risk retention act of 1986 applies to which business?
-self-insuring business
-re-insurers
-credit life insurance companies
-high-risk business insurers - correct-answer -the federal risk retention act of
1986 applies to self-insuring businesses
Jeremy has had an individual health insurance policy for many years because of
his family's history of cancer. the tendency of someone like jeremy to buy and
retain insurance is known as:
-implied selection
-adverse selection
-exposure reduction
-risk avoidance - correct-answer -his tendency to buy and retain insurance is
known as adverse selection
WEBCE TEST QUESTIONS WITH
CORRECT ANSWERS 2026
which of the following is NOT an unfair claims settlement practice if committed by
an insurance company in PA?
-failing to promptly acknowledge communications about claims
-failing to promptly settle a claim for which liability is uncertain
-offering to settle claims for less than due to encourage litigation
-raising policy defenses to reduce a claim - correct-answer -failing to promptly
settle a claim for which liability is uncertain is not an unfair claims settlement
practice
Stacy is a captive agent for best rates insurance company. Her agency contract
gives her permission to print and use business cards with the company's logo and
,2|Page
submit applications for its policy. What type of authority does stacy have to take
these actions? - correct-answer -Stacy has express authority due to the contract
between her and the insurance company specifically allowing her act in such a
way
to boost her sales at the end of the year, agent Trudy started offering potential
clients a $250 cash gift card in exchange for purchasing a life insurance policy.
which ethical sales practice has she violated?
-twisting
-churning
-rebating
-false information - correct-answer -rebating
its illegal to offer gifts in exchange for the purchase of an insurance policy
,3|Page
which of the following is not a power granted to the PA commissioner of
insurance?
-licensing producers and companies
-enforcing insurance laws
-issuing regulations to administer insurance laws
-prosecuting individuals for violating insurance laws - correct-answer -the PA
commissioner of insurance CANNOT prosecute individuals for violating insurance
laws
which is not necessary to create a legal contract?
-consideration
-offer
-warranty
-acceptance - correct-answer -warranty is not necessary to create a legal contract
, 4|Page
the federal risk retention act of 1986 applies to which business?
-self-insuring business
-re-insurers
-credit life insurance companies
-high-risk business insurers - correct-answer -the federal risk retention act of
1986 applies to self-insuring businesses
Jeremy has had an individual health insurance policy for many years because of
his family's history of cancer. the tendency of someone like jeremy to buy and
retain insurance is known as:
-implied selection
-adverse selection
-exposure reduction
-risk avoidance - correct-answer -his tendency to buy and retain insurance is
known as adverse selection
