webce test questions
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1. 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 th
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: 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 ris
which may result in a gain.
2. Agent Jill received a letter from the Department of insurance asking her
to submit verification of having completed the continued education require-
ments 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?: a fine up to $100 per day
per violation
A producer has 30 days to respond to a written inquiry from the Department
3. 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: estoppel
4. 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?: 30 days
all rate filings are subject to a 30-day waiting period before they become effective.
5. The commissioner of insurance can examine the business accounts,
trans- actions, and records of insurers and producers as often as
necessary, but must do so at least once in how many years?: 5 years
, webce test questions
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https://quizlet.com/_gw49rd
6. 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: they are engaging in unfair and prohibited business practices
they are agreeing to unreasonable restraint of trade in insurance business, and the
are engaging in unfair discrimination
7. 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: imprisonment is not a punishment for committing an unfair
method of competition
you cannot be arrested for committing an unfair method of competition
8. which of the following is NOT an unfair claims settlement practice if
com- mitted 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: ailing to promptly settle a claim for which liability is
uncertain is NOT an unfair claims settlement practice
9. 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?: Jeff has 30 days to notify the PA commissioner of insurance of the
disciplinary action being taken against him
10. which of the following is NOT an unfair claims settlement practice if
com- mitted by an insurance company in PA?
, webce test questions
Study online at
https://quizlet.com/_gw49rd
-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
-raising policy defenses to reduce a claim: failing to promptly settle a claim for
which liability is uncertain is not an unfair claims settlement practice
11. Stacy is a captive agent for best rates insurance company. Her agency
contract gives her permission to print and use business cards with the com-
pany's logo and submit applications for its policy. What type of authority
does stacy have to take these actions?: Stacy has express authority due to the
contract between her and the insurance company specifically allowing her act in
such a way
12. to boost her sales at the end of the year, agent Trudy started offering po-
tential clients a $250 cash gift card in exchange for purchasing a life
insurance policy. which ethical sales practice has she violated?
-twisting
-churning
-rebating
-false information: rebating
its illegal to offer gifts in exchange for the purchase of an insurance policy
13. which of the following is not a power granted to the PA commissioner
of insurance?
-licensing producers and companies
-enforcing insurance laws
-issuing regulations to administer insurance laws
-prosecuting individuals for violating insurance laws: the PA commissioner of
insurance CANNOT prosecute individuals for violating insurance laws
14. which is not necessary to create a legal contract?
-consideration
-offer
-warranty
-acceptance: warranty is not necessary to create a legal contract
15. the federal risk retention act of 1986 applies to which business?
-self-insuring business
-re-insurers
Study online at
https://quizlet.com/_gw49rd
1. 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 th
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: 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 ris
which may result in a gain.
2. Agent Jill received a letter from the Department of insurance asking her
to submit verification of having completed the continued education require-
ments 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?: a fine up to $100 per day
per violation
A producer has 30 days to respond to a written inquiry from the Department
3. 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: estoppel
4. 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?: 30 days
all rate filings are subject to a 30-day waiting period before they become effective.
5. The commissioner of insurance can examine the business accounts,
trans- actions, and records of insurers and producers as often as
necessary, but must do so at least once in how many years?: 5 years
, webce test questions
Study online at
https://quizlet.com/_gw49rd
6. 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: they are engaging in unfair and prohibited business practices
they are agreeing to unreasonable restraint of trade in insurance business, and the
are engaging in unfair discrimination
7. 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: imprisonment is not a punishment for committing an unfair
method of competition
you cannot be arrested for committing an unfair method of competition
8. which of the following is NOT an unfair claims settlement practice if
com- mitted 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: ailing to promptly settle a claim for which liability is
uncertain is NOT an unfair claims settlement practice
9. 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?: Jeff has 30 days to notify the PA commissioner of insurance of the
disciplinary action being taken against him
10. which of the following is NOT an unfair claims settlement practice if
com- mitted by an insurance company in PA?
, webce test questions
Study online at
https://quizlet.com/_gw49rd
-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
-raising policy defenses to reduce a claim: failing to promptly settle a claim for
which liability is uncertain is not an unfair claims settlement practice
11. Stacy is a captive agent for best rates insurance company. Her agency
contract gives her permission to print and use business cards with the com-
pany's logo and submit applications for its policy. What type of authority
does stacy have to take these actions?: Stacy has express authority due to the
contract between her and the insurance company specifically allowing her act in
such a way
12. to boost her sales at the end of the year, agent Trudy started offering po-
tential clients a $250 cash gift card in exchange for purchasing a life
insurance policy. which ethical sales practice has she violated?
-twisting
-churning
-rebating
-false information: rebating
its illegal to offer gifts in exchange for the purchase of an insurance policy
13. which of the following is not a power granted to the PA commissioner
of insurance?
-licensing producers and companies
-enforcing insurance laws
-issuing regulations to administer insurance laws
-prosecuting individuals for violating insurance laws: the PA commissioner of
insurance CANNOT prosecute individuals for violating insurance laws
14. which is not necessary to create a legal contract?
-consideration
-offer
-warranty
-acceptance: warranty is not necessary to create a legal contract
15. the federal risk retention act of 1986 applies to which business?
-self-insuring business
-re-insurers
