ANNUITY – WEBCE EXAM 2023 QUESTIONS WITH VERIFIED
ANSWERS
1.Shirley is financially responsible for her minor children but has never
owned life insurance. She wants to purchase life insurance after being
diangosed with a possibly terminal disease. Which of the following
characterizes her desire to purchase life insurance?
a. clean sheeting
b. warehousing
c. material misrepresentation
d. adverse selection:
Ans>> d. adverse selection
2.Arthur is concerned that flying on a commercial airliner exposes him to
the risk that he will be injured or killed in an aircraft accident. He manages
that risk by choosing other modes of transportation. What is this method of
risk management?
a. risk transfer
b. risk reduction
c. risk avoidance
d. risk assumption:
Ans>> c. risk avoidance
3.Insurance policies are offered to proposed insured on a "take it or leave
it" basis, giving them no ability to negotiate terms or price which term
describes this feature of insurance contracts.
A. Adhesion
B. Aleatory
C. Unilateral
D. Commutative:
Ans>> A. Adhesion
4.Corby applied for $100,000 of life insurance, paid $100 first premium on
February 1, and was given a conditional receipt. He then died in a skiing
accident 10 days later while the risk was being underwritten. What
amount would be paid to Corby's beneficiary, assuming the risk was
accepted as applied for on March 1.
A. $0
B. $100
1/
5
,ANNUITY – WEBCE EXAM 2023 QUESTIONS WITH VERIFIED
ANSWERS
C. $100,000
D. $100,100:
Ans>> C. $100,000
5.Stacy is a captive agent for Best Rates insurance company. According
to her agency contract she can use business cards containing best
rates
company logo, and can also submit applications for their policies. Which typ
of authority does Stacy have that authorizes her to take these actions?
A. Apparent authority
B. Express authority
2/
5
ANSWERS
1.Shirley is financially responsible for her minor children but has never
owned life insurance. She wants to purchase life insurance after being
diangosed with a possibly terminal disease. Which of the following
characterizes her desire to purchase life insurance?
a. clean sheeting
b. warehousing
c. material misrepresentation
d. adverse selection:
Ans>> d. adverse selection
2.Arthur is concerned that flying on a commercial airliner exposes him to
the risk that he will be injured or killed in an aircraft accident. He manages
that risk by choosing other modes of transportation. What is this method of
risk management?
a. risk transfer
b. risk reduction
c. risk avoidance
d. risk assumption:
Ans>> c. risk avoidance
3.Insurance policies are offered to proposed insured on a "take it or leave
it" basis, giving them no ability to negotiate terms or price which term
describes this feature of insurance contracts.
A. Adhesion
B. Aleatory
C. Unilateral
D. Commutative:
Ans>> A. Adhesion
4.Corby applied for $100,000 of life insurance, paid $100 first premium on
February 1, and was given a conditional receipt. He then died in a skiing
accident 10 days later while the risk was being underwritten. What
amount would be paid to Corby's beneficiary, assuming the risk was
accepted as applied for on March 1.
A. $0
B. $100
1/
5
,ANNUITY – WEBCE EXAM 2023 QUESTIONS WITH VERIFIED
ANSWERS
C. $100,000
D. $100,100:
Ans>> C. $100,000
5.Stacy is a captive agent for Best Rates insurance company. According
to her agency contract she can use business cards containing best
rates
company logo, and can also submit applications for their policies. Which typ
of authority does Stacy have that authorizes her to take these actions?
A. Apparent authority
B. Express authority
2/
5
