WEBCE INSURANCE EXAM 2025 NEWEST
QUESTIONS AND CORRECT ANSWERS | ALREADY
PASSED GRADE A+
Which of the following exempted insurance companies from federal antitrust
legislation? - ans -the McCarran-Ferguson Act
Which of the following has primary responsibility for regulating the insurance
industry?
ans. the states
Which of the following is not an example of an unfair claims practice? - ans -
setting a time limit for submitting proof of loss
Sam was involved in a car accident. The other driver told Sam that the two of
them should agree on a settlement now because the longer Sam waited, the
more it was going to cost him. What should Sam do? - ans -decline because of his
policy's cooperation provisions
Norman is involved in filing a claim for a loss that is large and very complex. He
feels that if he handles it himself, there is a good chance he will end up with
considerably less than the loss warrants. Which of the following should Norman
hire to help him with the claim? - ans -public adjuster
Jamie has a liability policy with ABC insurance. He is being sued for damages by
Margie, who is also an ABC policyholder. Which statement best describes ABC's
duties? - ans -It has a higher duty to Jamie.
A minitrial is similar to arbitration in that the findings of the third party are always
binding. - ans -False
Which of the following statements regarding class actions is not true? - ans -An
injured party cannot become a member of the class without making a formal
request to the court.
, Which statement is true about arbitration? - ans -The submission agreement is a
binding contract.
How will a court interpret an ambiguous provision in an insurance policy? - ans -A
court will always interpret ambiguous provisions in favor of the insured.
In addition to a damage award of $50,000, the court also awarded Fran an
additional $300,000 because of the insurer's unreasonable behavior in refusing to
settle the claim. What type of additional damages did the court most likely
award? - ans -punitive damages
Which of the following is applied to all expenses in a health insurance policy
during a specified period? - ans -b. all-cause deductible
Under third-party indemnity insurance, insurers pay providers directly. - ans -a.
True
Which of the following is true of the Blues? - ans -c. . They provide benefits on a
service basis.
Which statement about the NAIC is correct? - ans -The NAIC prepares model laws,
regulations, and guidelines for adoption by the states.
The NAIC issued a model law on long-term care insurance. Which statement
about the model law's effectiveness is correct? - ans -The model law becomes
effective in a state if approved by the state legislature.
Which statement about life insurance illustrations is correct? - ans -Illustrations
must include the company's name, the date the illustration was prepared, initial
death benefit, and the name, age, and gender of the proposed insured.
Which of the following provides general information about life insurance policies
to potential buyers? - ans -the Buyer's Guide
Which of the following is the Gramm-Leach-Bliley Act primarily aimed at
regulating? - ans -the disclosure of personal financial information to third parties
QUESTIONS AND CORRECT ANSWERS | ALREADY
PASSED GRADE A+
Which of the following exempted insurance companies from federal antitrust
legislation? - ans -the McCarran-Ferguson Act
Which of the following has primary responsibility for regulating the insurance
industry?
ans. the states
Which of the following is not an example of an unfair claims practice? - ans -
setting a time limit for submitting proof of loss
Sam was involved in a car accident. The other driver told Sam that the two of
them should agree on a settlement now because the longer Sam waited, the
more it was going to cost him. What should Sam do? - ans -decline because of his
policy's cooperation provisions
Norman is involved in filing a claim for a loss that is large and very complex. He
feels that if he handles it himself, there is a good chance he will end up with
considerably less than the loss warrants. Which of the following should Norman
hire to help him with the claim? - ans -public adjuster
Jamie has a liability policy with ABC insurance. He is being sued for damages by
Margie, who is also an ABC policyholder. Which statement best describes ABC's
duties? - ans -It has a higher duty to Jamie.
A minitrial is similar to arbitration in that the findings of the third party are always
binding. - ans -False
Which of the following statements regarding class actions is not true? - ans -An
injured party cannot become a member of the class without making a formal
request to the court.
, Which statement is true about arbitration? - ans -The submission agreement is a
binding contract.
How will a court interpret an ambiguous provision in an insurance policy? - ans -A
court will always interpret ambiguous provisions in favor of the insured.
In addition to a damage award of $50,000, the court also awarded Fran an
additional $300,000 because of the insurer's unreasonable behavior in refusing to
settle the claim. What type of additional damages did the court most likely
award? - ans -punitive damages
Which of the following is applied to all expenses in a health insurance policy
during a specified period? - ans -b. all-cause deductible
Under third-party indemnity insurance, insurers pay providers directly. - ans -a.
True
Which of the following is true of the Blues? - ans -c. . They provide benefits on a
service basis.
Which statement about the NAIC is correct? - ans -The NAIC prepares model laws,
regulations, and guidelines for adoption by the states.
The NAIC issued a model law on long-term care insurance. Which statement
about the model law's effectiveness is correct? - ans -The model law becomes
effective in a state if approved by the state legislature.
Which statement about life insurance illustrations is correct? - ans -Illustrations
must include the company's name, the date the illustration was prepared, initial
death benefit, and the name, age, and gender of the proposed insured.
Which of the following provides general information about life insurance policies
to potential buyers? - ans -the Buyer's Guide
Which of the following is the Gramm-Leach-Bliley Act primarily aimed at
regulating? - ans -the disclosure of personal financial information to third parties
