Webce Life and Health Exam Questions and
Answers with Verified Solutions | Latest
Updated 2026
Representations and Warranties 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.
Underwriting vs. Actuarial Two related insurance company functions.
Departments 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.
,Managerial System vs. General Two variations of the career agency
Agency System 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).
Fraternal Insurance Company A non-profit form of insurance provider
sponsored by an organization of people
who
share a common ethnic, religious, or
vocational
affiliation.
Peril and Hazard 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.
Contract of adhesion 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.
,Mutual Insurance Company A form of insurance company that is
owned by
policyowners. May distribute policy
dividends
(non-taxable) through participating
policies.
Independent Agency System An insurance distribution system in which
the
manager and producers are fully
independent
and not affiliated with any single insurer.
Buyer's Guide and Policy Two related disclosure documents that are
Summary required by most states to be presented to
life
and health insurance applicants at some
point
during the buying process.
Risk A basic insurance term referring to the
possibility of incurring a loss.
Law of Large Numbers A mathematical principle that is the basis
for
predicting the odds of a loss occurring in a
certain population in any given year.
Social Security (OASDI) A federal insurance program that provides
disability, death, and retirement benefits to
covered workers and their qualifying
beneficiaries.
, Agents vs. Brokers Two basic types of insurance producer: an
______
represents a single insurer and a _____
sells
policies from multiple insurers.
Reinsurance The process through which insurance
companies spread large risks among other
insurers.
Domestic, Foreign, and Alien Insurers can be categorized by their state
Insurers of
domicile. There are three categories,
known as
_____, _____, and _____.
Stock Insurance Company A form of insurance company that is
owned by
stockholders who may or may not also be
policyowners. May distribute stock
dividends
(taxable).
Admitted Insurer An insurer that has a certificate of authority
in a
given state is said to be an___________
insurer in
that state.
Answers with Verified Solutions | Latest
Updated 2026
Representations and Warranties 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.
Underwriting vs. Actuarial Two related insurance company functions.
Departments 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.
,Managerial System vs. General Two variations of the career agency
Agency System 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).
Fraternal Insurance Company A non-profit form of insurance provider
sponsored by an organization of people
who
share a common ethnic, religious, or
vocational
affiliation.
Peril and Hazard 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.
Contract of adhesion 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.
,Mutual Insurance Company A form of insurance company that is
owned by
policyowners. May distribute policy
dividends
(non-taxable) through participating
policies.
Independent Agency System An insurance distribution system in which
the
manager and producers are fully
independent
and not affiliated with any single insurer.
Buyer's Guide and Policy Two related disclosure documents that are
Summary required by most states to be presented to
life
and health insurance applicants at some
point
during the buying process.
Risk A basic insurance term referring to the
possibility of incurring a loss.
Law of Large Numbers A mathematical principle that is the basis
for
predicting the odds of a loss occurring in a
certain population in any given year.
Social Security (OASDI) A federal insurance program that provides
disability, death, and retirement benefits to
covered workers and their qualifying
beneficiaries.
, Agents vs. Brokers Two basic types of insurance producer: an
______
represents a single insurer and a _____
sells
policies from multiple insurers.
Reinsurance The process through which insurance
companies spread large risks among other
insurers.
Domestic, Foreign, and Alien Insurers can be categorized by their state
Insurers of
domicile. There are three categories,
known as
_____, _____, and _____.
Stock Insurance Company A form of insurance company that is
owned by
stockholders who may or may not also be
policyowners. May distribute stock
dividends
(taxable).
Admitted Insurer An insurer that has a certificate of authority
in a
given state is said to be an___________
insurer in
that state.
