ANNUITY – WEBCE EXAM 2023 QUESTIONS WITH VERIFIED
ANSWERS
1.Shirley gis gfinancially gresponsible gfor gher gminor gchildren gbut ghas gnever
gowned glife ginsurance. gShe gwants gto gpurchase glife ginsurance gafter gbeing
gdiangosed gwith ga gpossibly gterminal gdisease. gWhich gof gthe gfollowing
gcharacterizes gher gdesire gto gpurchase glife ginsurance?
a. clean gsheeting
b. warehousing
c. material gmisrepresentation
d. adverse gselection:
g g gAns>>d. gadverse gselection
2.Arthur gis gconcerned gthat gflying gon ga gcommercial gairliner gexposes ghim gto
gthe grisk gthat ghe gwill gbe ginjured gor gkilled gin gan gaircraft gaccident. gHe
gmanages gthat grisk gby gchoosing gother gmodes gof gtransportation. gWhat gis
gthis gmethod gof grisk gmanagement?
a. risk gtransfer
b. risk greduction
c. risk gavoidance
d. risk gassumption:
g g g gAns>> gc. grisk gavoidance
3.Insurance gpolicies gare goffered gto gproposed ginsured gon ga g"take git gor
gleave git" gbasis, ggiving gthem gno gability gto gnegotiate gterms gor gprice gwhich
gterm gdescribes gthis gfeature gof ginsurance gcontracts.
A. Adhesion
B. Aleatory
C. Unilateral
D. Commutative: g
g gAns>>A. gAdhesion
4.Corby gapplied gfor g$100,000 gof glife ginsurance, gpaid g$100 gfirst gpremium
gon gFebruary g1, gand gwas ggiven ga gconditional greceipt. gHe gthen gdied gin ga
gskiing gaccident g10 gdays glater gwhile gthe grisk gwas gbeing gunderwritten.
gWhat gamount gwould gbe gpaid gto gCorby's gbeneficiary, gassuming gthe grisk
gwas gaccepted gas gapplied gfor gon gMarch g1.
A. $0
B. $100
1 g/
g5
,ANNUITY – WEBCE EXAM 2023 QUESTIONS WITH VERIFIED
ANSWERS
C. $100,000
D. $100,100:
g g gAns>> gC. g$100,000
5.Stacy gis ga gcaptive gagent gfor gBest gRates ginsurance gcompany.
gAccording gto gher gagency gcontract gshe gcan guse gbusiness gcards
gcontaining gbest grates
company glogo, gand gcan galso gsubmit gapplications gfor gtheir gpolicies. gWhich
gtype gof gauthority gdoes gStacy ghave gthat gauthorizes gher gto gtake gthese
gactions?
A. Apparent gauthority
B. Express gauthority
2 g/
g5
ANSWERS
1.Shirley gis gfinancially gresponsible gfor gher gminor gchildren gbut ghas gnever
gowned glife ginsurance. gShe gwants gto gpurchase glife ginsurance gafter gbeing
gdiangosed gwith ga gpossibly gterminal gdisease. gWhich gof gthe gfollowing
gcharacterizes gher gdesire gto gpurchase glife ginsurance?
a. clean gsheeting
b. warehousing
c. material gmisrepresentation
d. adverse gselection:
g g gAns>>d. gadverse gselection
2.Arthur gis gconcerned gthat gflying gon ga gcommercial gairliner gexposes ghim gto
gthe grisk gthat ghe gwill gbe ginjured gor gkilled gin gan gaircraft gaccident. gHe
gmanages gthat grisk gby gchoosing gother gmodes gof gtransportation. gWhat gis
gthis gmethod gof grisk gmanagement?
a. risk gtransfer
b. risk greduction
c. risk gavoidance
d. risk gassumption:
g g g gAns>> gc. grisk gavoidance
3.Insurance gpolicies gare goffered gto gproposed ginsured gon ga g"take git gor
gleave git" gbasis, ggiving gthem gno gability gto gnegotiate gterms gor gprice gwhich
gterm gdescribes gthis gfeature gof ginsurance gcontracts.
A. Adhesion
B. Aleatory
C. Unilateral
D. Commutative: g
g gAns>>A. gAdhesion
4.Corby gapplied gfor g$100,000 gof glife ginsurance, gpaid g$100 gfirst gpremium
gon gFebruary g1, gand gwas ggiven ga gconditional greceipt. gHe gthen gdied gin ga
gskiing gaccident g10 gdays glater gwhile gthe grisk gwas gbeing gunderwritten.
gWhat gamount gwould gbe gpaid gto gCorby's gbeneficiary, gassuming gthe grisk
gwas gaccepted gas gapplied gfor gon gMarch g1.
A. $0
B. $100
1 g/
g5
,ANNUITY – WEBCE EXAM 2023 QUESTIONS WITH VERIFIED
ANSWERS
C. $100,000
D. $100,100:
g g gAns>> gC. g$100,000
5.Stacy gis ga gcaptive gagent gfor gBest gRates ginsurance gcompany.
gAccording gto gher gagency gcontract gshe gcan guse gbusiness gcards
gcontaining gbest grates
company glogo, gand gcan galso gsubmit gapplications gfor gtheir gpolicies. gWhich
gtype gof gauthority gdoes gStacy ghave gthat gauthorizes gher gto gtake gthese
gactions?
A. Apparent gauthority
B. Express gauthority
2 g/
g5
