Webce Life and Health Exam Questions
And Answers
Representations and Warranties - correct 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 - correct 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.
Managerial System vs. General Agency System - correct 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 - correct 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 - correct answer ✅Two related general insurance
terms:
Peril is the immediate cause of a loss (and the event that is insured
against).
,Webce Life and Health Exam Questions
And Answers
Hazard is any condition that increases the risk of incurring a loss.
Contract of adhesion - correct 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 - correct answer ✅A form of insurance
company that is owned by policyowners. May distribute policy
dividends (non-taxable) through participating policies.
Independent Agency System - correct 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 - correct 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 - correct answer ✅A basic insurance term referring to the
possibility of incurring a loss.
,Webce Life and Health Exam Questions
And Answers
Law of Large Numbers - correct 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) - correct answer ✅A federal insurance program
that provides disability, death, and retirement benefits to covered
workers and their qualifying beneficiaries.
Agents vs. Brokers - correct answer ✅Two basic types of insurance
producer: an ______ represents a single insurer and a _____ sells
policies from multiple insurers.
Reinsurance - correct answer ✅The process through which insurance
companies spread large risks among other insurers.
Domestic, Foreign, and Alien Insurers - correct answer ✅Insurers can
be categorized by their state of domicile. There are three categories,
known as _____, _____, and _____.
Stock Insurance Company - correct answer ✅A form of insurance
company that is owned by stockholders who may or may not also be
policyowners. May distribute stock dividends (taxable).
, Webce Life and Health Exam Questions
And Answers
Admitted Insurer - correct 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 - correct 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.
Apparent authority—Advising the applicant to not disclose on the
application any important health facts that might reduce his or her
insurability.
Indemnity vs. Valued Contract - correct answer ✅Two forms of
insurance contract. An indemnity contract bases policy benefits on
reimbursement of actual losses. A valued contract bases benefits on a
stated amount without regard for the value of the loss.
Loss - correct answer ✅An unplanned reduction in economic value
resulting from the occurrence of a covered peril.
Medicare - correct answer ✅A federal insurance program that provides
medical care benefits to covered workers (retirees).
And Answers
Representations and Warranties - correct 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 - correct 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.
Managerial System vs. General Agency System - correct 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 - correct 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 - correct answer ✅Two related general insurance
terms:
Peril is the immediate cause of a loss (and the event that is insured
against).
,Webce Life and Health Exam Questions
And Answers
Hazard is any condition that increases the risk of incurring a loss.
Contract of adhesion - correct 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 - correct answer ✅A form of insurance
company that is owned by policyowners. May distribute policy
dividends (non-taxable) through participating policies.
Independent Agency System - correct 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 - correct 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 - correct answer ✅A basic insurance term referring to the
possibility of incurring a loss.
,Webce Life and Health Exam Questions
And Answers
Law of Large Numbers - correct 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) - correct answer ✅A federal insurance program
that provides disability, death, and retirement benefits to covered
workers and their qualifying beneficiaries.
Agents vs. Brokers - correct answer ✅Two basic types of insurance
producer: an ______ represents a single insurer and a _____ sells
policies from multiple insurers.
Reinsurance - correct answer ✅The process through which insurance
companies spread large risks among other insurers.
Domestic, Foreign, and Alien Insurers - correct answer ✅Insurers can
be categorized by their state of domicile. There are three categories,
known as _____, _____, and _____.
Stock Insurance Company - correct answer ✅A form of insurance
company that is owned by stockholders who may or may not also be
policyowners. May distribute stock dividends (taxable).
, Webce Life and Health Exam Questions
And Answers
Admitted Insurer - correct 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 - correct 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.
Apparent authority—Advising the applicant to not disclose on the
application any important health facts that might reduce his or her
insurability.
Indemnity vs. Valued Contract - correct answer ✅Two forms of
insurance contract. An indemnity contract bases policy benefits on
reimbursement of actual losses. A valued contract bases benefits on a
stated amount without regard for the value of the loss.
Loss - correct answer ✅An unplanned reduction in economic value
resulting from the occurrence of a covered peril.
Medicare - correct answer ✅A federal insurance program that provides
medical care benefits to covered workers (retirees).
