WebCe

Representations and Warranties CORRECT ANSWERS: Representations are statements the applicant makes on an application that are deemed to be true to the applicant's best knowledge. Warranties are statements the insurer makes in the contract. Underwriting vs. Actuarial Departments CORRECT ANSWERS: Two related insurance company functions. Through the process of _________, applications are assessed for insurability and to assign premium rates. The ________ department analyzes data to help estim...

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39 pages

Written in 2022/2023

Grade A+

Classroom

Risk CORRECT ANSWERS: Chance of loss Loss CORRECT ANSWERS: Unplanned reduction of economic value Peril CORRECT ANSWERS: cause of loss Hazard CORRECT ANSWERS: a condition that increases the chance of peril Risk Transfer CORRECT ANSWERS: buying insurance to shift the risk to insurance company Underwriting CORRECT ANSWERS: assessing applicant to determine insurability Adverse Selection CORRECT ANSWERS: people with greater risk of loss trying to buy insurance Mutual Compa...

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12 pages

Written in 2022/2023

Grade A+

Classroom

In general, what is the earliest age at which a person can take a distribution from a qualified plan without a tax penalty? - CORRECT ANS 59 1/2 Carol was 35 when she bought her deferred annuity. Now, at age 38, she wants to withdraw funds from the contract to take a vacation. Carol is likely to encounter all of the following consequences in making the withdrawal EXCEPT: - CORRECT ANS statutory minimum withholding requirements What kind of misrepresentation on an insurance application give...

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14 pages

Written in 2023/2024

Grade A+

claytondoc

Risk - CORRECT ANS Chance of loss 5 Risk or Loss Factors - CORRECT ANS 1. Risk 2. Loss 3. Exposure 4. Peril 5. Hazard Insurance allows: - CORRECT ANS Individual or group to transfer over to insurance company the risk of financial loss from a destructive event Fundamental purpose of insurance is: - CORRECT ANS To indemnify policyholder against covered losses or restore policyholder back to same financial position they were in before Insurance companies may used term risks to refer to insu...

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4 pages

Written in 2023/2024

Grade A+

claytondoc

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 ow...

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36 pages

Written in 2023/2024

Grade A+

claytondoc

1. 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: knowing that his family is depending on him, Frank wants to insure his own life o...

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24 pages

Written in 2022/2023

Grade A+

wlucy2851

webce ACTUAL QUESTIONS AND ANSWERS 2023webce ACTUAL QUESTIONS AND ANSWERS 2023 1. 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: kno...

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23 pages

Written in 2022/2023

Grade A+

lectdenis

Risk CORRECT ANSWERS: chance of loss Loss CORRECT ANSWERS: an unplanned reduction in economic value What risk is insurable? CORRECT ANSWERS: pure risk What are the two types of risk? CORRECT ANSWERS: pure risk and speculative risk Involves the possibility of a loss? CORRECT ANSWERS: pure risk Can result in either loss or gain? CORRECT ANSWERS: speculative risk Loss CORRECT ANSWERS: an unplanned reduction in economic value Direct loss CORRECT ANSWERS: immediate result...

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5 pages

Written in 2022/2023

Grade A+

Classroom

Risk CORRECT ANSWERS: Chance of loss 5 Risk or Loss Factors CORRECT ANSWERS: 1. Risk 2. Loss 3. Exposure 4. Peril 5. Hazard Insurance allows: CORRECT ANSWERS: Individual or group to transfer over to insurance company the risk of financial loss from a destructive event Fundamental purpose of insurance is: CORRECT ANSWERS: To indemnify policyholder against covered losses or restore policyholder back to same financial position they were in before Insurance companies may used term ri...

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3 pages

Written in 2022/2023

Grade A+

Classroom

Annuitization is CORRECT ANSWERS: Accumulated values are converted into a stream of periodic income payments. How often can payments of annuities be paid out? CORRECT ANSWERS: A specified term of years, for life, or a combination of the two. What is the reason (how has a consumer's priorities and needs shifted) that annuities are well suited for late-life retirement planning? CORRECT ANSWERS: When a consumer priorities and needs typically shift from asset accumulation to income distrib...

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4 pages

Written in 2022/2023

Grade A+

Classroom

Indirect Loss CORRECT ANSWERS: A secondary loss that follows from a direct loss to insured property from a covered peril. Ex. Hotel expenses incurred by the insured while a fire-damaged home is repaired is an indirect loss that follows the direct loss of the home. Exclusive Agency System CORRECT ANSWERS: An insurance distribution system in which producers (agents) represent a single company. Ex. In the exclusive agency system, insurers use independent contractors (exclusive agents) that r...

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6 pages

Written in 2022/2023

Grade A+

Classroom

You have been invited to your niece's wedding reception, and the invitation requests an RSVP. You really don't want to go, and you could simply decline the invitation. But you respond that you will be in attendance, and you check her bridal registry to select an appropriate gift to bring. Your decision is based on CORRECT ANSWERS: an area of manners; it would have been impolite to decline. Stefan's friends would agree that he has many vices. In describing Stefan's character, they would p...

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7 pages

Written in 2022/2023

Grade A+

Classroom

All of the following are eligible to purchase a group life insurance policy EXCEPT: the Wonderful Widget Company, which employs more than 200 people the State Electrical Workers Union the Retailers Multiple Employer Trust, formed by two retailers to purchase insurance for their employees Stan and his neighbors, who form their own group to buy group coverage at a lower cost than their individual coverages CORRECT ANSWERS: Stan and his neighbors are not eligible to purchase group life insur...

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76 pages

Written in 2022/2023

Grade A+

Classroom

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. CORRECT ANSWERS: she must show her Ohio license is in good standing An annuity settlement option with a life contingency i...

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29 pages

Written in 2022/2023

Grade A+

Classroom

Buying life or health insurance is an example of which risk management technique? risk avoidance risk reduction risk retention risk transfer CORRECT ANSWERS: risk transfer What is the mathematical concept of probability that helps insurers estimate the statistical likelihood of mortality or morbidity losses at any given age? law of large numbers underwriting principle law of probability actuarial principle CORRECT ANSWERS: law of large numbers A person who refuses to engage i...

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90 pages

Written in 2022/2023

Grade A+

Classroom

In general, what is the earliest age at which a person can take a distribution from a qualified plan without a tax penalty? CORRECT ANSWERS: 59 1/2 Carol was 35 when she bought her deferred annuity. Now, at age 38, she wants to withdraw funds from the contract to take a vacation. Carol is likely to encounter all of the following consequences in making the withdrawal EXCEPT: CORRECT ANSWERS: statutory minimum withholding requirements What kind of misrepresentation on an insurance applicat...

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9 pages

Written in 2022/2023

Grade A+

Classroom

Which of the following is characteristic of Virginia's Long-Term Care Insurance Partnership program? CORRECT ANSWERS: both I and II John's long-term care insurance partnership policy lapsed for nonpayment of premiums while he was confined in a nursing home. His coverage for that nursing home confinement would cease in all of the following circumstances EXCEPT: CORRECT ANSWERS: immediately upon lapse The Virginia Long-Term Care Insurance Partnership program employs a _________ model wit...

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1 pages

Written in 2022/2023

Grade A+

Classroom

What is the underwriter's goal? CORRECT ANSWERS: To write a book of business in which the actual losses approximate the expected losses. Gertrude is going to become an insurance agent. She would like to work in an agency that represents many different insurance companies. Gertrude will go to work for a(n) CORRECT ANSWERS: Independent agency When a client suffers a loss, MegaInsurers is expected to respond promptly to settle the resulting claim. Depending on the line of insurance, claim ...

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2 pages

Written in 2022/2023

Grade A+

Classroom

What is the form of LTC that is non-medical and involving the most private and intimate aspects of a person's life - personal hygiene, dressing, and toileting? CORRECT ANSWERS: Custodial Care Custodial Care provides these "low-tech" services that are designed to minimize, rehabilitate, or compensate for loss of _______________. CORRECT ANSWERS: Loss of Independent physical or mental functioning. What are the less personal long-term custodial care needs that my be involved? CORRECT AN...

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2 pages

Written in 2022/2023

Grade A+

Classroom

Homeowners Coverage Forms: HO-1 Homeowners Coverage Forms: HO - 2 CORRECT ANSWERS: Broad Form. Dwelling, other structures, personal property on named perils basis. Loss of use, personal liability, medical payments. Homeowners insurance policy that provides insurance coverage on the "named-peril" basis. There are 16 covered perils on a broad form policy. Homeowners Coverage Forms: HO - 3 CORRECT ANSWERS: Special Form. Insurance policy that provides insurance coverage for the structure o...

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1 pages

Written in 2022/2023

Grade A+

Classroom