WEBCE ACTUAL QUESTIONS AND ANSWERS
2024 (SPRING)
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 inthe stock market
-Ralph takes a second mortgage on his house and uses the
proceeds togamble
-wanting better job security, Ron cashes in his life insurance
to start his ownbusiness: 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 speculativerisk 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 require-ments for the
previous licensing period. Three weeks later, the
department sent another letter. Which penalty may the
Department impose if Jill has stillnot responded to their
request a month later?: 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 hima statement the following month without
,notice of the lapse. If Jim pays thepremium 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: estoppel
• BBC insurers filed premium rates for its new line of
variable products on January 15. Within how many days
must the commissioner approve ordisapprove the
rates?: 30 days
all 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?: 5 years
• Acme Insurance and Apogee insurance agree to offer
different premiumrates for persons of equal risk within a
particular class. They also agree tolimit benefits paid to
insureds within this class if the insureds live within
certain counties of PA. What are Acme and Apogee
engaging in?
-acceptable marketing and underwriting practices
-unfair and prohibited business practices
-insurance fraud
,-false advertising: they are engaging in unfair and prohibited
business practices
they are agreeing to unreasonable restraint of trade in
insurance business, andthey are engaging in unfair
discrimination
• which of the following is NOT a remedy available to the
PA commissionerof insurance for committing an unfair
method of competition?
-imprisonment
-cease and desist order
-suspension of license
-revocation of license: imprisonment is not a punishment for
committing an unfairmethod of competition
you cannot be arrested for committing an unfair method of
competition
• which of the following is NOT an unfair claims
settlement practice ifcommitted 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 theinsured to accept a lower settlement
-failing to affirm or deny coverage within a reasonable time
after completing aclaim investigation: 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
NY. 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?: Jeff has 30 days to notify the
PA commissioner of insurance of thedisciplinary action being
taken against him
• which of the following is NOT an unfair claims
settlement practice ifcommitted 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: failing to promptly
settle a claim forwhich 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?: Stacy has express
authority due to the contract between her and the insurance
company specifically allowing her act in such a way
2024 (SPRING)
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 inthe stock market
-Ralph takes a second mortgage on his house and uses the
proceeds togamble
-wanting better job security, Ron cashes in his life insurance
to start his ownbusiness: 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 speculativerisk 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 require-ments for the
previous licensing period. Three weeks later, the
department sent another letter. Which penalty may the
Department impose if Jill has stillnot responded to their
request a month later?: 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 hima statement the following month without
,notice of the lapse. If Jim pays thepremium 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: estoppel
• BBC insurers filed premium rates for its new line of
variable products on January 15. Within how many days
must the commissioner approve ordisapprove the
rates?: 30 days
all 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?: 5 years
• Acme Insurance and Apogee insurance agree to offer
different premiumrates for persons of equal risk within a
particular class. They also agree tolimit benefits paid to
insureds within this class if the insureds live within
certain counties of PA. What are Acme and Apogee
engaging in?
-acceptable marketing and underwriting practices
-unfair and prohibited business practices
-insurance fraud
,-false advertising: they are engaging in unfair and prohibited
business practices
they are agreeing to unreasonable restraint of trade in
insurance business, andthey are engaging in unfair
discrimination
• which of the following is NOT a remedy available to the
PA commissionerof insurance for committing an unfair
method of competition?
-imprisonment
-cease and desist order
-suspension of license
-revocation of license: imprisonment is not a punishment for
committing an unfairmethod of competition
you cannot be arrested for committing an unfair method of
competition
• which of the following is NOT an unfair claims
settlement practice ifcommitted 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 theinsured to accept a lower settlement
-failing to affirm or deny coverage within a reasonable time
after completing aclaim investigation: 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
NY. 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?: Jeff has 30 days to notify the
PA commissioner of insurance of thedisciplinary action being
taken against him
• which of the following is NOT an unfair claims
settlement practice ifcommitted 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: failing to promptly
settle a claim forwhich 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?: Stacy has express
authority due to the contract between her and the insurance
company specifically allowing her act in such a way
