WEBCE INSURANCE TEST | QUESTIONS AND ANSWERS |
VERIFIED ANSWERS GRADED A+ | LATEST EXAM UPDATE
Agent Thompson received a letter from the Department of Insurance asking her
to provide proof of completing the continuing education requirements. Within
how many days must Agent Thompson respond to the Department's inquiry?
20
30
10
45 - CORRECT ANSWER - 10 days
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 ANSWER -
She must show her Ohio license is in good standing
The requirement that an insurable interest must exist when life insurance is
purchased is intended to prevent people from doing which of the following?
using life insurance to fund future cash needs
using life insurance as a speculative investment on another person's
life
,overusing life insurance
designating an ineligible person as the policy beneficiary - CORRECT
ANSWER - using life insurance as a speculative interest on another person's
life
Which one of the following best describes a policy that has a relatively low face
amount and has premiums that are paid to an insurance agent who generally
calls on the policyowner at home to collect them?
group life insurance
industrial life insurance
ordinary term insurance
ordinary whole life insurance - CORRECT ANSWER - industrial life
insurance
Sylvia's insurer guarantees a fixed death benefit for the policy she owns. Based
on this, which one of the following benefits is also most likely guaranteed with
this policy?
the policy's cash value
her ability to borrow an interest-free loan from the cash value
policy dividends
payment of premiums on Sylvia's behalf in the event of emergencies -
CORRECT ANSWER - the policy's cash value
Carl is a policyowner who prefers to pay premiums monthly rather than
annually. How will Carl's insurance company adjust his premium to
accommodate this request?
The insurer divides the annual premium by 12 and then adds a modest charge.
The insurer simply divides the annual premium by 12.
, The insurer divides the annual premium by 12 and then reduces the premium
amount to reflect the fact that premiums will be paid throughout the year.
The insurer divides the annual premium by 12 and then adds a modest charge in
the first policy year after which premiums equal the annual premium divided by
12. - CORRECT ANSWER - The insurer divides the annual premium by 12
and then adds a modest charge
All of the following statements about key person life insurance are correct,
EXCEPT:
The business applies for, owns, and is the beneficiary of the policy covering the
life of a key employee.
Upon the insured employee's death, the employee's surviving family receives
the policy's death benefit.
Key person, or key employee, life insurance is an example of third-party
ownership.
Life insurance used as key person life is normally owned by the business rather
than the insured. - CORRECT ANSWER - XXX Upon the insured employee's
death, the employee's surviving family receives the policy benefit XXX
The activities a producer performs to support the insurance company in learning
all it can about the applicant when seeking applications for insurance are
generally called:
field underwriting
fiduciary process
agency development
due diligence - CORRECT ANSWER - field underwriting
How is increasing term life insurance normally sold?
, as an endorsement
as a permanent insurance policy
as a stand-alone term life insurance policy
as a rider attached to a permanent life insurance policy - CORRECT
ANSWER - as a rider attached to a permanent insurance policy
Andrea bought a $300,000 term-to-age-55 policy. All the following statements
about her policy are correct EXCEPT:
The policy provides $300,000 of coverage until Andrea reaches age 55.
The policy will generate a cash value that is payable at age 55.
It is possible that Andrea could convert the term policy to a life insurance
policy that provides coverage for Andrea's entire life even if she becomes
uninsurable.
The premium for the policy stays the same until the policy expires. -
CORRECT ANSWER - XXX The policy will generate a cash value that is
payable at age 55 XXX
The basic purpose for the re-entry option with a renewable term life insurance
policy is to let the policyowner:
reinstate the policy after it has lapsed for nonpayment of premiums without
having to provide evidence of insurability
convert the term policy to a permanent life insurance policy
renew the policy with a higher face amount without having to provide evidence
of insurability
renew the policy at lower current rates rather than guaranteed renewal rates -
CORRECT ANSWER - renew the policy at lower current rates rather than
guaranteed renewal rates
Term life insurance is well suited for all the following needs EXCEPT:
VERIFIED ANSWERS GRADED A+ | LATEST EXAM UPDATE
Agent Thompson received a letter from the Department of Insurance asking her
to provide proof of completing the continuing education requirements. Within
how many days must Agent Thompson respond to the Department's inquiry?
20
30
10
45 - CORRECT ANSWER - 10 days
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 ANSWER -
She must show her Ohio license is in good standing
The requirement that an insurable interest must exist when life insurance is
purchased is intended to prevent people from doing which of the following?
using life insurance to fund future cash needs
using life insurance as a speculative investment on another person's
life
,overusing life insurance
designating an ineligible person as the policy beneficiary - CORRECT
ANSWER - using life insurance as a speculative interest on another person's
life
Which one of the following best describes a policy that has a relatively low face
amount and has premiums that are paid to an insurance agent who generally
calls on the policyowner at home to collect them?
group life insurance
industrial life insurance
ordinary term insurance
ordinary whole life insurance - CORRECT ANSWER - industrial life
insurance
Sylvia's insurer guarantees a fixed death benefit for the policy she owns. Based
on this, which one of the following benefits is also most likely guaranteed with
this policy?
the policy's cash value
her ability to borrow an interest-free loan from the cash value
policy dividends
payment of premiums on Sylvia's behalf in the event of emergencies -
CORRECT ANSWER - the policy's cash value
Carl is a policyowner who prefers to pay premiums monthly rather than
annually. How will Carl's insurance company adjust his premium to
accommodate this request?
The insurer divides the annual premium by 12 and then adds a modest charge.
The insurer simply divides the annual premium by 12.
, The insurer divides the annual premium by 12 and then reduces the premium
amount to reflect the fact that premiums will be paid throughout the year.
The insurer divides the annual premium by 12 and then adds a modest charge in
the first policy year after which premiums equal the annual premium divided by
12. - CORRECT ANSWER - The insurer divides the annual premium by 12
and then adds a modest charge
All of the following statements about key person life insurance are correct,
EXCEPT:
The business applies for, owns, and is the beneficiary of the policy covering the
life of a key employee.
Upon the insured employee's death, the employee's surviving family receives
the policy's death benefit.
Key person, or key employee, life insurance is an example of third-party
ownership.
Life insurance used as key person life is normally owned by the business rather
than the insured. - CORRECT ANSWER - XXX Upon the insured employee's
death, the employee's surviving family receives the policy benefit XXX
The activities a producer performs to support the insurance company in learning
all it can about the applicant when seeking applications for insurance are
generally called:
field underwriting
fiduciary process
agency development
due diligence - CORRECT ANSWER - field underwriting
How is increasing term life insurance normally sold?
, as an endorsement
as a permanent insurance policy
as a stand-alone term life insurance policy
as a rider attached to a permanent life insurance policy - CORRECT
ANSWER - as a rider attached to a permanent insurance policy
Andrea bought a $300,000 term-to-age-55 policy. All the following statements
about her policy are correct EXCEPT:
The policy provides $300,000 of coverage until Andrea reaches age 55.
The policy will generate a cash value that is payable at age 55.
It is possible that Andrea could convert the term policy to a life insurance
policy that provides coverage for Andrea's entire life even if she becomes
uninsurable.
The premium for the policy stays the same until the policy expires. -
CORRECT ANSWER - XXX The policy will generate a cash value that is
payable at age 55 XXX
The basic purpose for the re-entry option with a renewable term life insurance
policy is to let the policyowner:
reinstate the policy after it has lapsed for nonpayment of premiums without
having to provide evidence of insurability
convert the term policy to a permanent life insurance policy
renew the policy with a higher face amount without having to provide evidence
of insurability
renew the policy at lower current rates rather than guaranteed renewal rates -
CORRECT ANSWER - renew the policy at lower current rates rather than
guaranteed renewal rates
Term life insurance is well suited for all the following needs EXCEPT:
