WEBCE Life And Health (281 Questions)
With 100% Correct Verified Answers
GRADED A
Managerial System vs. General Agency System - ✔✔ANSWER✔✔-Two variations
of the career agency system in which producers represent a single company. One
is headed by a company employee called a general manager (GM), the other by an
independent contractor called a general agent (GA).
Fraternal Insurance Company - ✔✔ANSWER✔✔-A non-profit form of insurance
provider sponsored by an organization of people who share a common ethnic,
religious, or vocational affiliation.
Peril and Hazard - ✔✔ANSWER✔✔-Two related general insurance terms:
Peril is the immediate cause of a loss (and the event that is insured against).
,Hazard is any condition that increases the risk of incurring a loss.
Contract of adhesion - ✔✔ANSWER✔✔-A type of contract in which one party (the
offeror) drafts the terms that must be accepted as-is by the offeree. Insurance
policies are this type.
Mutual Insurance Company - ✔✔ANSWER✔✔-A form of insurance company that
is owned by policyowners. May distribute policy dividends (non-taxable) through
participating policies.
Expense Charge (Load Factor) - ✔✔ANSWER✔✔-The load factor reflects the costs
the insurer expects to incur on the policy. In determining its load factor, an insurer
is generally guided by three objectives:
to cover total operating costs
to provide a safety margin
to contribute to profits or surplus
Term Life Insurance - ✔✔ANSWER✔✔-This basic form of life insurance provides
temporary protection and does not include a cash value while the insured is alive.
Representations and Warranties - ✔✔ANSWER✔✔-Representations are
statements the applicant makes on an application that are deemed to be true to
the applicant's best knowledge. Warranties are statements the insurer makes in
the contract.
Underwriting vs. Actuarial Departments - ✔✔ANSWER✔✔-Two related insurance
company functions. Through the process of _________, applications are assessed
for insurability and to assign premium rates. The ________ department analyzes
data to help estimate future losses and to produce rate tables.
,Insurable Interest - ✔✔ANSWER✔✔-The financial interest a policyowner has in a
person or property being insured, justifying the purchase of insurance.
Annuitization - ✔✔ANSWER✔✔-The process through which a sum of money is
converted into periodic payments through an annuity contract.
Different for every age and annuity income option, annuity purchase rates are
defined in terms of income dollars per $1,000 of accumulation.
Variable Annuity - ✔✔ANSWER✔✔-An investment-focused annuity whose
contract values vary in response to the contract's underlying assets and are
therefore not guaranteed.
Independent Agency System - ✔✔ANSWER✔✔-An insurance distribution system
in which the manager and producers are fully independent and not affiliated with
any single insurer.
Buyer's Guide and Policy Summary - ✔✔ANSWER✔✔-Two related disclosure
documents that are required by most states to be presented to life and health
insurance applicants at some point during the buying process.
Risk - ✔✔ANSWER✔✔-A basic insurance term referring to the possibility of
incurring a loss.
Law of Large Numbers - ✔✔ANSWER✔✔-A mathematical principle that is the
basis for predicting the odds of a loss occurring in a certain population in any
given year.
, Social Security (OASDI) - ✔✔ANSWER✔✔-A federal insurance program that
provides disability, death, and retirement benefits to covered workers and their
qualifying beneficiaries.
Agents vs. Brokers - ✔✔ANSWER✔✔-Two basic types of insurance producer: an
______ represents a single insurer and a _____ sells policies from multiple
insurers.
Reinsurance - ✔✔ANSWER✔✔-The process through which insurance companies
spread large risks among other insurers.
Domestic, Foreign, and Alien Insurers - ✔✔ANSWER✔✔-Insurers can be
categorized by their state of domicile. There are three categories, known as
_____, _____, and _____.
Stock Insurance Company - ✔✔ANSWER✔✔-A form of insurance company that is
owned by stockholders who may or may not also be policyowners. May distribute
stock dividends (taxable).
Admitted Insurer - ✔✔ANSWER✔✔-An insurer that has a certificate of authority
in a given state is said to be an___________ insurer in that state.
Express, Implied, and Apparent Authority - ✔✔ANSWER✔✔-Express authority—
The right to sign an application as an agent for the insurer.
Implied authority—Using a computer program to identify insurance needs and to
recommend solutions.
With 100% Correct Verified Answers
GRADED A
Managerial System vs. General Agency System - ✔✔ANSWER✔✔-Two variations
of the career agency system in which producers represent a single company. One
is headed by a company employee called a general manager (GM), the other by an
independent contractor called a general agent (GA).
Fraternal Insurance Company - ✔✔ANSWER✔✔-A non-profit form of insurance
provider sponsored by an organization of people who share a common ethnic,
religious, or vocational affiliation.
Peril and Hazard - ✔✔ANSWER✔✔-Two related general insurance terms:
Peril is the immediate cause of a loss (and the event that is insured against).
,Hazard is any condition that increases the risk of incurring a loss.
Contract of adhesion - ✔✔ANSWER✔✔-A type of contract in which one party (the
offeror) drafts the terms that must be accepted as-is by the offeree. Insurance
policies are this type.
Mutual Insurance Company - ✔✔ANSWER✔✔-A form of insurance company that
is owned by policyowners. May distribute policy dividends (non-taxable) through
participating policies.
Expense Charge (Load Factor) - ✔✔ANSWER✔✔-The load factor reflects the costs
the insurer expects to incur on the policy. In determining its load factor, an insurer
is generally guided by three objectives:
to cover total operating costs
to provide a safety margin
to contribute to profits or surplus
Term Life Insurance - ✔✔ANSWER✔✔-This basic form of life insurance provides
temporary protection and does not include a cash value while the insured is alive.
Representations and Warranties - ✔✔ANSWER✔✔-Representations are
statements the applicant makes on an application that are deemed to be true to
the applicant's best knowledge. Warranties are statements the insurer makes in
the contract.
Underwriting vs. Actuarial Departments - ✔✔ANSWER✔✔-Two related insurance
company functions. Through the process of _________, applications are assessed
for insurability and to assign premium rates. The ________ department analyzes
data to help estimate future losses and to produce rate tables.
,Insurable Interest - ✔✔ANSWER✔✔-The financial interest a policyowner has in a
person or property being insured, justifying the purchase of insurance.
Annuitization - ✔✔ANSWER✔✔-The process through which a sum of money is
converted into periodic payments through an annuity contract.
Different for every age and annuity income option, annuity purchase rates are
defined in terms of income dollars per $1,000 of accumulation.
Variable Annuity - ✔✔ANSWER✔✔-An investment-focused annuity whose
contract values vary in response to the contract's underlying assets and are
therefore not guaranteed.
Independent Agency System - ✔✔ANSWER✔✔-An insurance distribution system
in which the manager and producers are fully independent and not affiliated with
any single insurer.
Buyer's Guide and Policy Summary - ✔✔ANSWER✔✔-Two related disclosure
documents that are required by most states to be presented to life and health
insurance applicants at some point during the buying process.
Risk - ✔✔ANSWER✔✔-A basic insurance term referring to the possibility of
incurring a loss.
Law of Large Numbers - ✔✔ANSWER✔✔-A mathematical principle that is the
basis for predicting the odds of a loss occurring in a certain population in any
given year.
, Social Security (OASDI) - ✔✔ANSWER✔✔-A federal insurance program that
provides disability, death, and retirement benefits to covered workers and their
qualifying beneficiaries.
Agents vs. Brokers - ✔✔ANSWER✔✔-Two basic types of insurance producer: an
______ represents a single insurer and a _____ sells policies from multiple
insurers.
Reinsurance - ✔✔ANSWER✔✔-The process through which insurance companies
spread large risks among other insurers.
Domestic, Foreign, and Alien Insurers - ✔✔ANSWER✔✔-Insurers can be
categorized by their state of domicile. There are three categories, known as
_____, _____, and _____.
Stock Insurance Company - ✔✔ANSWER✔✔-A form of insurance company that is
owned by stockholders who may or may not also be policyowners. May distribute
stock dividends (taxable).
Admitted Insurer - ✔✔ANSWER✔✔-An insurer that has a certificate of authority
in a given state is said to be an___________ insurer in that state.
Express, Implied, and Apparent Authority - ✔✔ANSWER✔✔-Express authority—
The right to sign an application as an agent for the insurer.
Implied authority—Using a computer program to identify insurance needs and to
recommend solutions.
