WEBCE INSURANCE EXAM WITH 110+ QUESTIONS & CORRECT ANSWERS GRADED A

WEBCE INSURANCE EXAM WITH 110+ QUESTIONS & CORRECT ANSWERS 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 take s 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 life only pure ri sk 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 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 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 days all rate filings are subj ect 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? - ANSW ER-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 PA. 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 practices they are agre eing 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? -imprisonme nt -cease and desist order -suspension of license -revocation of license - ANSWER -imprisonment is not a punishment for committing an unfair method of competition you cannot be arrested for committing an unfair method of competition which of the following is NOT an unfair claims settlement practice if co mmitted 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 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? - ANSWER -Jeff has 30 days to not ify 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 c laims -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 un certain 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 ty pe 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 starte d 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 -rebating its illegal to offer gifts in exchange for the purchase of an insurance policy