WFG License (Life, Insurance, Accident) Exam Questions with 100%
Correct Answers Latest Graded A+
Question:
Insurance
Answer:
contract whereby one undertakes to idemnify [restore before loss] another against loss, damage,
liability from contingency [unknown/ unplanned events]
Indemnify
Question:
Give example.
Answer:
restore person to some financial position before loss has occurred
To make someone whole
Ex: if someone passes, that lost of income is covered by life insurance (percentage of what is
covered depends on plan of insurance purchased before incident)
Question:
Contingency
Answer:
unknown/ unplanned events
Question:
What does insurance protect against before loss is done?
Answer:
loss
Damage
liability from unplanned/ unknown events
Question:
,insurable interest
Answer:
necessary for insurance to be LEGAL, insurance is voided without
policy owner must have insurable INTEREST at time of application
can NOT be FORCED or insurance will be voided
Question:
representation
Answer:
statements made by a person on an application for life insurance that are believed to be true to the
best of one's knowledge
Question:
the only time it can be withdrawn is before the insurance is in effect (usually 5-8 weeks AFTER
signing) NOT warranty How long does policy owner have to withdraw any representation made on
application of life insurance?
Answer:
5-8 weeks AFTER signing
Question:
utmost good faith
Answer:
principle
mutual agreement
each party is entitled to rely on each other's representation with expectation that each is acting in
good faith without attempts to deceive or conceal
fiduciary
Question:
Give Examples.
Answer:
person in position of trust
, relationship between trustee and beneficiary
if a licensed agent is a fiduciary, must have higher standard of conduct (more responsibility)
EX: The company has fiduciary duty to shareholders
EX: Agent/ producer has a fiduciary obligation to act in the best interest of the insured
EX: Policy holder entrusts form of payment for insurance's premium to agent to submit
immediately to insurer
Question:
aleatory
Answer:
uncertainty, by chance, unpredictable
Question:
what type of contract is insurance? Why?
Answer:
aleatory
...because performance of this contract is based on an uncertain future event that may or may not
happen and parties involved don't have to perform until that specific event take place.
EX. of event: death
Question:
contract of adhesion
Answer:
a contract between two parties where the terms and conditions are set by one party and the other
has little or no ability to negotiate more favorable terms
placed as a "take it or leave it" type of contract
Question:
a) Who are the two parties involved in the contract of adhesion for insurance? b) Who is the only
one capable of composing and drafting an insurance contract? c) Who can not negotiate?
Answer:
Correct Answers Latest Graded A+
Question:
Insurance
Answer:
contract whereby one undertakes to idemnify [restore before loss] another against loss, damage,
liability from contingency [unknown/ unplanned events]
Indemnify
Question:
Give example.
Answer:
restore person to some financial position before loss has occurred
To make someone whole
Ex: if someone passes, that lost of income is covered by life insurance (percentage of what is
covered depends on plan of insurance purchased before incident)
Question:
Contingency
Answer:
unknown/ unplanned events
Question:
What does insurance protect against before loss is done?
Answer:
loss
Damage
liability from unplanned/ unknown events
Question:
,insurable interest
Answer:
necessary for insurance to be LEGAL, insurance is voided without
policy owner must have insurable INTEREST at time of application
can NOT be FORCED or insurance will be voided
Question:
representation
Answer:
statements made by a person on an application for life insurance that are believed to be true to the
best of one's knowledge
Question:
the only time it can be withdrawn is before the insurance is in effect (usually 5-8 weeks AFTER
signing) NOT warranty How long does policy owner have to withdraw any representation made on
application of life insurance?
Answer:
5-8 weeks AFTER signing
Question:
utmost good faith
Answer:
principle
mutual agreement
each party is entitled to rely on each other's representation with expectation that each is acting in
good faith without attempts to deceive or conceal
fiduciary
Question:
Give Examples.
Answer:
person in position of trust
, relationship between trustee and beneficiary
if a licensed agent is a fiduciary, must have higher standard of conduct (more responsibility)
EX: The company has fiduciary duty to shareholders
EX: Agent/ producer has a fiduciary obligation to act in the best interest of the insured
EX: Policy holder entrusts form of payment for insurance's premium to agent to submit
immediately to insurer
Question:
aleatory
Answer:
uncertainty, by chance, unpredictable
Question:
what type of contract is insurance? Why?
Answer:
aleatory
...because performance of this contract is based on an uncertain future event that may or may not
happen and parties involved don't have to perform until that specific event take place.
EX. of event: death
Question:
contract of adhesion
Answer:
a contract between two parties where the terms and conditions are set by one party and the other
has little or no ability to negotiate more favorable terms
placed as a "take it or leave it" type of contract
Question:
a) Who are the two parties involved in the contract of adhesion for insurance? b) Who is the only
one capable of composing and drafting an insurance contract? c) Who can not negotiate?
Answer:
