WEBCE TEST QUESTIONS WITH COMPLETE ANSWERS GRADED A+

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 ANS 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 ANS 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?