Webce Insurance exam questions and answers
(verified and well detailed answers) latest 2025/2026
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
the PA commissioner of insurance of the disciplinary action being taken
against him
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
(verified and well detailed answers) latest 2025/2026
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
the PA commissioner of insurance of the disciplinary action being taken
against him
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
