Webce life and health exam (actual
exam)questions,answers 2024 – 2025
A signed statement of continued good health, which states that no health change
has occurred since the application was signed, becomes part of the application. It
gives the insurer the right to void the contract during the contestability period if
the applicant misrepresented the truth when signing this form.
Short-Term Disability (STD) coverage - ANSWERS-Group disability income
insurance that provides benefits for less than two years.
Coverage for group disability income benefits takes two forms: short-term
disability (STD) and long-term disability (LTD). Group plans with maximum benefit
periods of less than two years are short-term disability plans. Short-term plans
usually only cover nonoccupational-related losses.
,Insurance with Other Insurer Provision - ANSWERS-An optional health insurance
provision that allows the insurer to prorate benefits if another insurer also covers
the loss.
This is one of several related provisions dealing with coverage from multiple
insurers. In all instances the intent is the same—to prevent the insured from
profiting by collecting more benefits than the amount of loss.
Medical Expense Insurance Taxation - ANSWERS-Premiums are tax deductible to
the extent all nonreimbursed medical expenses exceed certain AGI thresholds.
A person is allowed to deduct medical expenses—including medical insurance
premiums—that exceed 10% of adjusted gross income (AGI). (Through 2016, the
threshold for seniors is 7½% of AGI. Beginning in 2017 it is 10% of AGI for all
people.)
Attending Physician's Statement (APS) - ANSWERS-physician's report, requested
by an underwriter, that provides detailed information on a specific condition for
which the physician treated the applicant.
An APS is requested if the applicant has been treated for a medical condition for
which the underwriter needs additional information before approving an
application for insurance.
Dental Insurance - ANSWERS-A type of limited risk health insurance that
reimburses insureds for the cost of noncosmetic dental care.
,Fraternal Insurance Company - ANSWERS-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 - ANSWERS-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 - ANSWERS-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 - ANSWERS-A form of insurance company that is
owned by policyowners. May distribute policy dividends (non-taxable) through
participating policies.
Independent Agency System - ANSWERS-An insurance distribution system in
which the manager and producers are fully independent and not affiliated with
any single insurer.
Representations and Warranties - ANSWERS-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 - ANSWERS-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 - ANSWERS-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).
Buyer's Guide and Policy Summary - ANSWERS-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 - ANSWERS-A basic insurance term referring to the possibility of incurring a
loss.
Law of Large Numbers - ANSWERS-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) - ANSWERS-A federal insurance program that provides
disability, death, and retirement benefits to covered workers and their qualifying
beneficiaries.
exam)questions,answers 2024 – 2025
A signed statement of continued good health, which states that no health change
has occurred since the application was signed, becomes part of the application. It
gives the insurer the right to void the contract during the contestability period if
the applicant misrepresented the truth when signing this form.
Short-Term Disability (STD) coverage - ANSWERS-Group disability income
insurance that provides benefits for less than two years.
Coverage for group disability income benefits takes two forms: short-term
disability (STD) and long-term disability (LTD). Group plans with maximum benefit
periods of less than two years are short-term disability plans. Short-term plans
usually only cover nonoccupational-related losses.
,Insurance with Other Insurer Provision - ANSWERS-An optional health insurance
provision that allows the insurer to prorate benefits if another insurer also covers
the loss.
This is one of several related provisions dealing with coverage from multiple
insurers. In all instances the intent is the same—to prevent the insured from
profiting by collecting more benefits than the amount of loss.
Medical Expense Insurance Taxation - ANSWERS-Premiums are tax deductible to
the extent all nonreimbursed medical expenses exceed certain AGI thresholds.
A person is allowed to deduct medical expenses—including medical insurance
premiums—that exceed 10% of adjusted gross income (AGI). (Through 2016, the
threshold for seniors is 7½% of AGI. Beginning in 2017 it is 10% of AGI for all
people.)
Attending Physician's Statement (APS) - ANSWERS-physician's report, requested
by an underwriter, that provides detailed information on a specific condition for
which the physician treated the applicant.
An APS is requested if the applicant has been treated for a medical condition for
which the underwriter needs additional information before approving an
application for insurance.
Dental Insurance - ANSWERS-A type of limited risk health insurance that
reimburses insureds for the cost of noncosmetic dental care.
,Fraternal Insurance Company - ANSWERS-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 - ANSWERS-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 - ANSWERS-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 - ANSWERS-A form of insurance company that is
owned by policyowners. May distribute policy dividends (non-taxable) through
participating policies.
Independent Agency System - ANSWERS-An insurance distribution system in
which the manager and producers are fully independent and not affiliated with
any single insurer.
Representations and Warranties - ANSWERS-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 - ANSWERS-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 - ANSWERS-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).
Buyer's Guide and Policy Summary - ANSWERS-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 - ANSWERS-A basic insurance term referring to the possibility of incurring a
loss.
Law of Large Numbers - ANSWERS-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) - ANSWERS-A federal insurance program that provides
disability, death, and retirement benefits to covered workers and their qualifying
beneficiaries.
