webce test questions with
correct answers
which of the following situations presents a situation of pure risk?
| | | | | | | | | |
-knowing that his family is depending on him, Frank wants to insure his
| | | | | | | | | | | | |
life
-wanting to increase his retirement savings, Saul invests his life savings
| | | | | | | | | | |
in the stock market
| | |
-Ralph takes a second mortgage on his house and uses the proceeds to
| | | | | | | | | | | | |
gamble
-wanting better job security, Ron cashes in his life insurance to start his
| | | | | | | | | | | | |
own business - CORRECT ANSWER✔✔-knowing that his family is
| | | | | | | | |
depending on him, Frank wants to insure his own life
| | | | | | | | |
only pure risk is insurable. Pure risk may only result in a loss, unlike
| | | | | | | | | | | | | |
speculative risk which may result in a gain.
| | | | | | |
Agent Jill received a letter from the Department of insurance asking her
| | | | | | | | | | | |
to submit verification of having completed the continued education
| | | | | | | | |
requirements for the previous licensing period. Three weeks later, the
| | | | | | | | | |
,department sent another letter. Which penalty may the Department
| | | | | | | | |
impose if Jill has still not responded to their request a month later? -
| | | | | | | | | | | | | |
CORRECT ANSWER✔✔-a fine up to $100 per day per violation
| | | | | | | | |
A producer has 30 days to respond to a written inquiry from the
| | | | | | | | | | | | |
Department
Jim's policy expired due to nonpayment of premium. His agent sends
| | | | | | | | | | |
him a statement the following month without notice of the lapse. If Jim
| | | | | | | | | | | | |
pays the premium and later suffers a loss for which he files a claim, what
| | | | | | | | | | | | | |
will prevent the insurer from denying the claim?
| | | | | | | |
-estoppel |
-utmost good faith | |
-reasonable expectations |
-waiver - CORRECT ANSWER✔✔-estoppel
| | |
BBC insurers filed premium rates for its new line of variable products on
| | | | | | | | | | | | |
January 15. Within how many days must the commissioner approve or
| | | | | | | | | | |
disapprove the rates? - CORRECT ANSWER✔✔-30 days
| | | | | |
all rate filings are subject to a 30-day waiting period before they become
| | | | | | | | | | | |
effective.
|
,The commissioner of insurance can examine the business accounts,
| | | | | | | | |
transactions, and records of insurers and producers as often as
| | | | | | | | | |
necessary, but must do so at least once in how many years? - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-5 years |
Acme Insurance and Apogee insurance agree to offer different premium
| | | | | | | | | |
rates for persons of equal risk within a particular class. They also agree
| | | | | | | | | | | | |
to limit benefits paid to insureds within this class if the insureds live
| | | | | | | | | | | | |
within certain counties of PA. What are Acme and Apogee engaging in?
| | | | | | | | | | |
-acceptable marketing and underwriting practices | | | |
-unfair and prohibited business practices
| | | |
-insurance fraud |
-false advertising - CORRECT ANSWER✔✔-they are engaging in unfair
| | | | | | | | |
and prohibited business practices
| | |
they are agreeing to unreasonable restraint of trade in insurance
| | | | | | | | | |
business, and they are engaging in unfair discrimination
| | | | | | |
which of the following is NOT a remedy available to the PA
| | | | | | | | | | | |
commissioner of insurance for committing an unfair method of | | | | | | | | |
competition?
-imprisonment
, -cease and desist order
| | |
-suspension of license | |
-revocation of license - CORRECT ANSWER✔✔-imprisonment is not a
| | | | | | | | |
punishment for committing an unfair method of competition
| | | | | | |
you cannot be arrested for committing an unfair method of competition
| | | | | | | | | |
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
| | | | | | | | | |
-appealing from an arbitration award in favor of an insured to compel
| | | | | | | | | | | |
the insured to accept a lower settlement
| | | | | |
-failing to affirm or deny coverage within a reasonable time after
| | | | | | | | | | |
completing a claim investigation - CORRECT ANSWER✔✔-ailing to
| | | | | | | |
promptly settle a claim for which liability is uncertain is NOT an unfair
| | | | | | | | | | | | |
claims settlement practice
| |
Jeff is a licensed insurance producer in both PA and NY. he is charged
| | | | | | | | | | | | | |
with embezzlement in NY, and his first pretrial hearing is set for March
| | | | | | | | | | | | |
1. He must notify the PA commissioner of insurance within how many
| | | | | | | | | | | |
days of this hearing? - CORRECT ANSWER✔✔-Jeff has 30 days to notify
| | | | | | | | | | | |
correct answers
which of the following situations presents a situation of pure risk?
| | | | | | | | | |
-knowing that his family is depending on him, Frank wants to insure his
| | | | | | | | | | | | |
life
-wanting to increase his retirement savings, Saul invests his life savings
| | | | | | | | | | |
in the stock market
| | |
-Ralph takes a second mortgage on his house and uses the proceeds to
| | | | | | | | | | | | |
gamble
-wanting better job security, Ron cashes in his life insurance to start his
| | | | | | | | | | | | |
own business - CORRECT ANSWER✔✔-knowing that his family is
| | | | | | | | |
depending on him, Frank wants to insure his own life
| | | | | | | | |
only pure risk is insurable. Pure risk may only result in a loss, unlike
| | | | | | | | | | | | | |
speculative risk which may result in a gain.
| | | | | | |
Agent Jill received a letter from the Department of insurance asking her
| | | | | | | | | | | |
to submit verification of having completed the continued education
| | | | | | | | |
requirements for the previous licensing period. Three weeks later, the
| | | | | | | | | |
,department sent another letter. Which penalty may the Department
| | | | | | | | |
impose if Jill has still not responded to their request a month later? -
| | | | | | | | | | | | | |
CORRECT ANSWER✔✔-a fine up to $100 per day per violation
| | | | | | | | |
A producer has 30 days to respond to a written inquiry from the
| | | | | | | | | | | | |
Department
Jim's policy expired due to nonpayment of premium. His agent sends
| | | | | | | | | | |
him a statement the following month without notice of the lapse. If Jim
| | | | | | | | | | | | |
pays the premium and later suffers a loss for which he files a claim, what
| | | | | | | | | | | | | |
will prevent the insurer from denying the claim?
| | | | | | | |
-estoppel |
-utmost good faith | |
-reasonable expectations |
-waiver - CORRECT ANSWER✔✔-estoppel
| | |
BBC insurers filed premium rates for its new line of variable products on
| | | | | | | | | | | | |
January 15. Within how many days must the commissioner approve or
| | | | | | | | | | |
disapprove the rates? - CORRECT ANSWER✔✔-30 days
| | | | | |
all rate filings are subject to a 30-day waiting period before they become
| | | | | | | | | | | |
effective.
|
,The commissioner of insurance can examine the business accounts,
| | | | | | | | |
transactions, and records of insurers and producers as often as
| | | | | | | | | |
necessary, but must do so at least once in how many years? - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-5 years |
Acme Insurance and Apogee insurance agree to offer different premium
| | | | | | | | | |
rates for persons of equal risk within a particular class. They also agree
| | | | | | | | | | | | |
to limit benefits paid to insureds within this class if the insureds live
| | | | | | | | | | | | |
within certain counties of PA. What are Acme and Apogee engaging in?
| | | | | | | | | | |
-acceptable marketing and underwriting practices | | | |
-unfair and prohibited business practices
| | | |
-insurance fraud |
-false advertising - CORRECT ANSWER✔✔-they are engaging in unfair
| | | | | | | | |
and prohibited business practices
| | |
they are agreeing to unreasonable restraint of trade in insurance
| | | | | | | | | |
business, and they are engaging in unfair discrimination
| | | | | | |
which of the following is NOT a remedy available to the PA
| | | | | | | | | | | |
commissioner of insurance for committing an unfair method of | | | | | | | | |
competition?
-imprisonment
, -cease and desist order
| | |
-suspension of license | |
-revocation of license - CORRECT ANSWER✔✔-imprisonment is not a
| | | | | | | | |
punishment for committing an unfair method of competition
| | | | | | |
you cannot be arrested for committing an unfair method of competition
| | | | | | | | | |
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
| | | | | | | | | |
-appealing from an arbitration award in favor of an insured to compel
| | | | | | | | | | | |
the insured to accept a lower settlement
| | | | | |
-failing to affirm or deny coverage within a reasonable time after
| | | | | | | | | | |
completing a claim investigation - CORRECT ANSWER✔✔-ailing to
| | | | | | | |
promptly settle a claim for which liability is uncertain is NOT an unfair
| | | | | | | | | | | | |
claims settlement practice
| |
Jeff is a licensed insurance producer in both PA and NY. he is charged
| | | | | | | | | | | | | |
with embezzlement in NY, and his first pretrial hearing is set for March
| | | | | | | | | | | | |
1. He must notify the PA commissioner of insurance within how many
| | | | | | | | | | | |
days of this hearing? - CORRECT ANSWER✔✔-Jeff has 30 days to notify
| | | | | | | | | | | |
