Webce Life and Health Exam Questions
With Correct Answers
Representations are statements the applicant makes on an application
| | | | | | | | |
that are deemed to be true to the applicant's best knowledge.
| | | | | | | | | | |
Warranties are statements the insurer makes in the contract. - CORRECT
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ANSWER✔✔-Representations and Warranties
| | |
Two related insurance company functions. Through the process of
| | | | | | | | |
_________, applications are assessed for insurability and to assign
| | | | | | | | |
premium rates. The ________ department analyzes data to help
| | | | | | | | |
estimate future losses and to produce rate tables. - CORRECT
| | | | | | | | | |
ANSWER✔✔-Underwriting vs. Actuarial Departments | | |
Two variations of the career agency system in which producers
| | | | | | | | | |
represent a single company. One is headed by a company employee
| | | | | | | | | | |
called a general manager (GM), the other by an independent contractor
| | | | | | | | | | |
called a general agent (GA). - CORRECT ANSWER✔✔-Managerial System
| | | | | | | |
vs. General Agency System
| | | |
A non-profit form of insurance provider sponsored by an organization of
| | | | | | | | | |
people who share a common ethnic, religious, or vocational affiliation. -
| | | | | | | | | | |
CORRECT ANSWER✔✔-Fraternal Insurance Company
| | | |
,Two related general insurance terms:
| | | |
Peril is the immediate cause of a loss (and the event that is insured
| | | | | | | | | | | | | |
against).
Hazard is any condition that increases the risk of incurring a loss. -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Peril and Hazard | | |
A type of contract in which one party (the offeror) drafts the terms that
| | | | | | | | | | | | | |
must be accepted as-is by the offeree. Insurance policies are this type. -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Contract of adhesion | | |
A form of insurance company that is owned by policyowners. May
| | | | | | | | | | |
distribute policy dividends (non-taxable) through participating policies. -
| | | | | | |
CORRECT ANSWER✔✔-Mutual Insurance Company
| | | |
An insurance distribution system in which the manager and producers
| | | | | | | | | |
are fully independent and not affiliated with any single insurer. -
| | | | | | | | | | |
CORRECT ANSWER✔✔-Independent Agency System
| | |
Two related disclosure documents that are required by most states to
| | | | | | | | | | |
be presented to life and health insurance applicants at some point
| | | | | | | | | | |
during the buying process. - CORRECT ANSWER✔✔-Buyer's Guide and
| | | | | | | | |
Policy Summary |
,A basic insurance term referring to the possibility of incurring a loss. -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Risk |
A mathematical principle that is the basis for predicting the odds of a
| | | | | | | | | | | | |
loss occurring in a certain population in any given year. - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-Law of Large Numbers | | |
A federal insurance program that provides disability, death, and
| | | | | | | | |
retirement benefits to covered workers and their qualifying
| | | | | | | |
beneficiaries. - CORRECT ANSWER✔✔-Social Security (OASDI)
| | | | |
Two basic types of insurance producer: an ______ represents a single
| | | | | | | | | | |
insurer and a _____ sells policies from multiple insurers. - CORRECT
| | | | | | | | | | |
ANSWER✔✔-Agents vs. Brokers | |
The process through which insurance companies spread large risks
| | | | | | | | |
among other insurers. - CORRECT ANSWER✔✔-Reinsurance
| | | | |
Insurers can be categorized by their state of domicile. There are three
| | | | | | | | | | | |
categories, known as _____, _____, and _____. - CORRECT
| | | | | | | | |
ANSWER✔✔-Domestic, Foreign, and Alien Insurers | | | |
, A form of insurance company that is owned by stockholders who may or
| | | | | | | | | | | |
may not also be policyowners. May distribute stock dividends (taxable).
| | | | | | | | | |
- CORRECT ANSWER✔✔-Stock Insurance Company
| | | | |
An insurer that has a certificate of authority in a given state is said to be
| | | | | | | | | | | | | | | |
an___________ insurer in that state. - CORRECT ANSWER✔✔-Admitted | | | | | | | |
Insurer
Express authority—The right to sign an application as an agent for the
| | | | | | | | | | | |
insurer.
Implied authority—Using a computer program to identify insurance
| | | | | | | |
needs and to recommend solutions.
| | | |
Apparent authority—Advising the applicant to not disclose on the
| | | | | | | | |
application any important health facts that might reduce his or her
| | | | | | | | | | |
insurability. - CORRECT ANSWER✔✔-Express, Implied, and Apparent
| | | | | | |
Authority
Two forms of insurance contract. An indemnity contract bases policy
| | | | | | | | | |
benefits on reimbursement of actual losses. A valued contract bases
| | | | | | | | | |
benefits on a stated amount without regard for the value of the loss. -
| | | | | | | | | | | | | |
CORRECT ANSWER✔✔-Indemnity vs. Valued Contract
| | | |
An unplanned reduction in economic value resulting from the
| | | | | | | | |
occurrence of a covered peril. - CORRECT ANSWER✔✔-Loss
| | | | | | |
With Correct Answers
Representations are statements the applicant makes on an application
| | | | | | | | |
that are deemed to be true to the applicant's best knowledge.
| | | | | | | | | | |
Warranties are statements the insurer makes in the contract. - CORRECT
| | | | | | | | | |
ANSWER✔✔-Representations and Warranties
| | |
Two related insurance company functions. Through the process of
| | | | | | | | |
_________, applications are assessed for insurability and to assign
| | | | | | | | |
premium rates. The ________ department analyzes data to help
| | | | | | | | |
estimate future losses and to produce rate tables. - CORRECT
| | | | | | | | | |
ANSWER✔✔-Underwriting vs. Actuarial Departments | | |
Two variations of the career agency system in which producers
| | | | | | | | | |
represent a single company. One is headed by a company employee
| | | | | | | | | | |
called a general manager (GM), the other by an independent contractor
| | | | | | | | | | |
called a general agent (GA). - CORRECT ANSWER✔✔-Managerial System
| | | | | | | |
vs. General Agency System
| | | |
A non-profit form of insurance provider sponsored by an organization of
| | | | | | | | | |
people who share a common ethnic, religious, or vocational affiliation. -
| | | | | | | | | | |
CORRECT ANSWER✔✔-Fraternal Insurance Company
| | | |
,Two related general insurance terms:
| | | |
Peril is the immediate cause of a loss (and the event that is insured
| | | | | | | | | | | | | |
against).
Hazard is any condition that increases the risk of incurring a loss. -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Peril and Hazard | | |
A type of contract in which one party (the offeror) drafts the terms that
| | | | | | | | | | | | | |
must be accepted as-is by the offeree. Insurance policies are this type. -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Contract of adhesion | | |
A form of insurance company that is owned by policyowners. May
| | | | | | | | | | |
distribute policy dividends (non-taxable) through participating policies. -
| | | | | | |
CORRECT ANSWER✔✔-Mutual Insurance Company
| | | |
An insurance distribution system in which the manager and producers
| | | | | | | | | |
are fully independent and not affiliated with any single insurer. -
| | | | | | | | | | |
CORRECT ANSWER✔✔-Independent Agency System
| | |
Two related disclosure documents that are required by most states to
| | | | | | | | | | |
be presented to life and health insurance applicants at some point
| | | | | | | | | | |
during the buying process. - CORRECT ANSWER✔✔-Buyer's Guide and
| | | | | | | | |
Policy Summary |
,A basic insurance term referring to the possibility of incurring a loss. -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Risk |
A mathematical principle that is the basis for predicting the odds of a
| | | | | | | | | | | | |
loss occurring in a certain population in any given year. - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-Law of Large Numbers | | |
A federal insurance program that provides disability, death, and
| | | | | | | | |
retirement benefits to covered workers and their qualifying
| | | | | | | |
beneficiaries. - CORRECT ANSWER✔✔-Social Security (OASDI)
| | | | |
Two basic types of insurance producer: an ______ represents a single
| | | | | | | | | | |
insurer and a _____ sells policies from multiple insurers. - CORRECT
| | | | | | | | | | |
ANSWER✔✔-Agents vs. Brokers | |
The process through which insurance companies spread large risks
| | | | | | | | |
among other insurers. - CORRECT ANSWER✔✔-Reinsurance
| | | | |
Insurers can be categorized by their state of domicile. There are three
| | | | | | | | | | | |
categories, known as _____, _____, and _____. - CORRECT
| | | | | | | | |
ANSWER✔✔-Domestic, Foreign, and Alien Insurers | | | |
, A form of insurance company that is owned by stockholders who may or
| | | | | | | | | | | |
may not also be policyowners. May distribute stock dividends (taxable).
| | | | | | | | | |
- CORRECT ANSWER✔✔-Stock Insurance Company
| | | | |
An insurer that has a certificate of authority in a given state is said to be
| | | | | | | | | | | | | | | |
an___________ insurer in that state. - CORRECT ANSWER✔✔-Admitted | | | | | | | |
Insurer
Express authority—The right to sign an application as an agent for the
| | | | | | | | | | | |
insurer.
Implied authority—Using a computer program to identify insurance
| | | | | | | |
needs and to recommend solutions.
| | | |
Apparent authority—Advising the applicant to not disclose on the
| | | | | | | | |
application any important health facts that might reduce his or her
| | | | | | | | | | |
insurability. - CORRECT ANSWER✔✔-Express, Implied, and Apparent
| | | | | | |
Authority
Two forms of insurance contract. An indemnity contract bases policy
| | | | | | | | | |
benefits on reimbursement of actual losses. A valued contract bases
| | | | | | | | | |
benefits on a stated amount without regard for the value of the loss. -
| | | | | | | | | | | | | |
CORRECT ANSWER✔✔-Indemnity vs. Valued Contract
| | | |
An unplanned reduction in economic value resulting from the
| | | | | | | | |
occurrence of a covered peril. - CORRECT ANSWER✔✔-Loss
| | | | | | |
