WebCE Test 1 Comprehensive
Questions (Frequently Tested) with
Verified Answers
Abby lives in Ohio, where she is licensed as an insurance producer. She wants to apply for a
nonresident license in Pennsylvania. Which of the following conditions must she satisfy?
She must move to Pennsylvania.
She must surrender her Ohio license.
She must be sponsored by a producer licensed in Pennsylvania.
She must show her Ohio license is in good standing. - Answer: she must show her Ohio license
is in good standing
An annuity settlement option with a life contingency is one that:
pays annuity benefits for a specified period of time whether the annuitant lives or dies during
that period.
terminates annuity benefit payments if the annuitant is alive upon reaching his or her life
expectancy
continues annuity benefit payments for as long as the annuitant lives, even if it surpasses the
annuitant's life expectancy
requires there to be two or more annuitants who will receive annuity benefit payments before
annuitization is permitted - Answer: continues annuity benefit payments for as long as the
annuitant lives, even if it surpasses the annuitants life expectancy
Which group health plan gives employers the most flexibility in designing and arranging the
plan's benefits?
,experience-rated plans
community-rated plans
government issue plans
participating plans - Answer: experience-rated plans
An insurer typically considers all of the following during the underwriting process EXCEPT:
medical history
educational background
medical exams
lab tests - Answer: educational background
Before delivering a health insurance policy to a client, the producer alters the insuring clause in
a way that he believes will benefit the insurance company. Which of the following statements is
correct regarding this alteration?
It is required of a diligent producer.
It is prohibited by the entire contract provision.
It is permitted only when it is in the insurer's best interests.
It is prohibited unless the insured agrees to it in writing. - Answer: it is prohibited by the entire
contract provision
Terry, Bella, Raul, and Paulina each own a whole life insurance policy. Which person would not
be able to accelerate the benefits under their policy?
Terry, who has cancer and a six-month life expectancy
Bella, who has multiple sclerosis
,Raul, who became permanently disabled following a work accident
Paulina, who was injured in a car accident but is expected to return to work in a month -
Answer: Paulina, who was injured in a car accident but is expected to return to work in a month
Horace buys a Medicare supplement insurance policy but decides not to keep it. How many
days does he have to return it for a full refund of the premium?
10
14
21
30 - Answer: 30
Medicare has a free-look period of 30 days
All of the following statements about annuities are generally correct, EXCEPT:
Annuities are not life insurance.
Annuities are sold by life insurance agents and are issued by life insurance companies.
The historic purpose of annuities is to create estates over a certain period.
An annuity converts a sum of money into a series of income payments. - Answer: the historic
purpose of annuities is to create estates over a certain period
If a retired worker's total combined income, including one-half of his or her Social Security
benefit, exceeds a threshold amount, then up to what percentage of benefits exceeding the
threshold are taxable?
0 percent
50 percent
, 85 percent
100 percent - Answer: 85%
Gene is injured while on vacation. His employer's group disability plan pays benefits for over
two years but reduces the amount paid by the benefits he receives under an individual disability
policy. What kind of group coverage does Gene have?
group short-term disability plan
group occupational plan
group long-term disability plan
group partial disability plan - Answer: group long-term disability plan
these are occupational or non-occupational
Nick's policy has been canceled and Nick has paid a premium that was not due. Under the
cancellation provision, what must the insurer do?
The insurer can apply the premium to other coverage owned by the insured.
The insurer must return it to Nick.
The insurer can keep it.
Nothing unless the insured files a claim for the amount owed. - Answer: the insurer must return
it to Nick
All of the following are prohibited insurer practices EXCEPT:
accessing the MIB records on an applicant without the applicant's approval
declining an application for life insurance based on genetic testing information obtained on the
proposed insured.
Questions (Frequently Tested) with
Verified Answers
Abby lives in Ohio, where she is licensed as an insurance producer. She wants to apply for a
nonresident license in Pennsylvania. Which of the following conditions must she satisfy?
She must move to Pennsylvania.
She must surrender her Ohio license.
She must be sponsored by a producer licensed in Pennsylvania.
She must show her Ohio license is in good standing. - Answer: she must show her Ohio license
is in good standing
An annuity settlement option with a life contingency is one that:
pays annuity benefits for a specified period of time whether the annuitant lives or dies during
that period.
terminates annuity benefit payments if the annuitant is alive upon reaching his or her life
expectancy
continues annuity benefit payments for as long as the annuitant lives, even if it surpasses the
annuitant's life expectancy
requires there to be two or more annuitants who will receive annuity benefit payments before
annuitization is permitted - Answer: continues annuity benefit payments for as long as the
annuitant lives, even if it surpasses the annuitants life expectancy
Which group health plan gives employers the most flexibility in designing and arranging the
plan's benefits?
,experience-rated plans
community-rated plans
government issue plans
participating plans - Answer: experience-rated plans
An insurer typically considers all of the following during the underwriting process EXCEPT:
medical history
educational background
medical exams
lab tests - Answer: educational background
Before delivering a health insurance policy to a client, the producer alters the insuring clause in
a way that he believes will benefit the insurance company. Which of the following statements is
correct regarding this alteration?
It is required of a diligent producer.
It is prohibited by the entire contract provision.
It is permitted only when it is in the insurer's best interests.
It is prohibited unless the insured agrees to it in writing. - Answer: it is prohibited by the entire
contract provision
Terry, Bella, Raul, and Paulina each own a whole life insurance policy. Which person would not
be able to accelerate the benefits under their policy?
Terry, who has cancer and a six-month life expectancy
Bella, who has multiple sclerosis
,Raul, who became permanently disabled following a work accident
Paulina, who was injured in a car accident but is expected to return to work in a month -
Answer: Paulina, who was injured in a car accident but is expected to return to work in a month
Horace buys a Medicare supplement insurance policy but decides not to keep it. How many
days does he have to return it for a full refund of the premium?
10
14
21
30 - Answer: 30
Medicare has a free-look period of 30 days
All of the following statements about annuities are generally correct, EXCEPT:
Annuities are not life insurance.
Annuities are sold by life insurance agents and are issued by life insurance companies.
The historic purpose of annuities is to create estates over a certain period.
An annuity converts a sum of money into a series of income payments. - Answer: the historic
purpose of annuities is to create estates over a certain period
If a retired worker's total combined income, including one-half of his or her Social Security
benefit, exceeds a threshold amount, then up to what percentage of benefits exceeding the
threshold are taxable?
0 percent
50 percent
, 85 percent
100 percent - Answer: 85%
Gene is injured while on vacation. His employer's group disability plan pays benefits for over
two years but reduces the amount paid by the benefits he receives under an individual disability
policy. What kind of group coverage does Gene have?
group short-term disability plan
group occupational plan
group long-term disability plan
group partial disability plan - Answer: group long-term disability plan
these are occupational or non-occupational
Nick's policy has been canceled and Nick has paid a premium that was not due. Under the
cancellation provision, what must the insurer do?
The insurer can apply the premium to other coverage owned by the insured.
The insurer must return it to Nick.
The insurer can keep it.
Nothing unless the insured files a claim for the amount owed. - Answer: the insurer must return
it to Nick
All of the following are prohibited insurer practices EXCEPT:
accessing the MIB records on an applicant without the applicant's approval
declining an application for life insurance based on genetic testing information obtained on the
proposed insured.
