webce test questions with answers

webce test questions with answers |\ |\ |\ |\




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 ANSWERS ✔✔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 ANSWERS ✔✔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 ANSWERS ✔✔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 |\ |\ |\ |\ |\ |\ |\ |\



ANSWERS ✔✔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 ANSWERS ✔✔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 ANSWERS ✔✔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 ANSWERS ✔✔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 ANSWERS ✔✔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
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\