WEBCE INSURANCE EXAM WITH 250+ QUESTIONS &
CORRECT ANSWERS GRADED A
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 - 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. - 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 - 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 - 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 - 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. - 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. - 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 - 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 - 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. - 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
CORRECT ANSWERS GRADED A
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 - 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. - 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 - 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 - 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 - 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. - 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. - 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 - 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 - 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. - 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
