WEBCE TEST COMPREHENSIVE STUDY
GUIDE 2026 FULL QUESTIONS AND
SOLUTIONS 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.
Answer: knowing that his family is depending on him, Frank wants to insure
his own lifeonly 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?.
Answer: a fine up to $100 per day per violationA 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.
Answer: 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?.
Answer: 30 daysall 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?.
Answer: 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 P
A. What are Acme and Apogee engaging in?-acceptable marketing and
underwriting practices-unfair and prohibited business practices-insurance
fraud-false advertising.
Answer: they are engaging in unfair and prohibited business practicesthey
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.
Answer: imprisonment is not a punishment for committing an unfair method
of competitionyou 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.
, Answer: 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 N
Y. 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?.
Answer: 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.
Answer: 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?.
Answer: 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-churning-rebating-false information.
Answer: rebatingits illegal to offer gifts in exchange for the purchase of an
insurance policy
◍ which of the following is not a power granted to the PA commissioner of
insurance?-licensing producers and companies-enforcing insurance
laws-issuing regulations to administer insurance laws-prosecuting
individuals for violating insurance laws.
GUIDE 2026 FULL QUESTIONS AND
SOLUTIONS 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.
Answer: knowing that his family is depending on him, Frank wants to insure
his own lifeonly 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?.
Answer: a fine up to $100 per day per violationA 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.
Answer: 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?.
Answer: 30 daysall 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?.
Answer: 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 P
A. What are Acme and Apogee engaging in?-acceptable marketing and
underwriting practices-unfair and prohibited business practices-insurance
fraud-false advertising.
Answer: they are engaging in unfair and prohibited business practicesthey
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.
Answer: imprisonment is not a punishment for committing an unfair method
of competitionyou 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.
, Answer: 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 N
Y. 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?.
Answer: 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.
Answer: 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?.
Answer: 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-churning-rebating-false information.
Answer: rebatingits illegal to offer gifts in exchange for the purchase of an
insurance policy
◍ which of the following is not a power granted to the PA commissioner of
insurance?-licensing producers and companies-enforcing insurance
laws-issuing regulations to administer insurance laws-prosecuting
individuals for violating insurance laws.
