Webce Test Questions With Complete
Solutions Latest Update 2024-2025
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 set for March 1. He must
notify the PA commissioner of insurance within how many days of this hearing? -
correct answers Jeff has 30 days to notify the PA commissioner of insurance of the
disciplinary action being taken against him
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
-offering to settle claims for less than due to encourage litigation
-raising policy defenses to reduce a claim - correct answers failing to promptly
settle a claim for which liability is uncertain is not an unfair claims settlement
practice
Stacy is a captive agent for best rates insurance company. Her agency contract
gives her permission to print and use business cards with the company's logo and
submit applications for its policy. What type of authority does stacy have to take
these actions? - correct answers Stacy has express authority due to the contract
between her and the insurance company specifically allowing her act in such a
way
to boost her sales at the end of the year, agent Trudy started offering potential
clients a $250 cash gift card in exchange for purchasing a life insurance policy.
which ethical sales practice has she violated?
-twisting
Solutions Latest Update 2024-2025
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 set for March 1. He must
notify the PA commissioner of insurance within how many days of this hearing? -
correct answers Jeff has 30 days to notify the PA commissioner of insurance of the
disciplinary action being taken against him
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
-offering to settle claims for less than due to encourage litigation
-raising policy defenses to reduce a claim - correct answers failing to promptly
settle a claim for which liability is uncertain is not an unfair claims settlement
practice
Stacy is a captive agent for best rates insurance company. Her agency contract
gives her permission to print and use business cards with the company's logo and
submit applications for its policy. What type of authority does stacy have to take
these actions? - correct answers Stacy has express authority due to the contract
between her and the insurance company specifically allowing her act in such a
way
to boost her sales at the end of the year, agent Trudy started offering potential
clients a $250 cash gift card in exchange for purchasing a life insurance policy.
which ethical sales practice has she violated?
-twisting
