WEBCE FINAL EXAM LATEST 2023 REAL EXAM 100 QUESTIONS
AND ANSWERS
1. Which of the following exempted insurance companies from federal antitrust
legislation? - ANSWER: the McCarran-Ferguson Act
Which statement about the NAIC is correct? - ANSWER: The NAIC prepares model
laws, regulations, and guidelines for adoption by the states.
4. The NAIC issued a model law on long-term care insurance. Which statement about
the model law's effectiveness is correct? - ANSWER: The model law becomes
effective in a state if approved by the state legislature.
Which statement about life insurance illustrations is correct? - ANSWER: Illustrations
must include the company's name, the date the illustration was prepared, initial
death benefit, and the name, age, and gender of the proposed insured.
2. Which of the following provides general information about life insurance policies
to potential buyers? - ANSWER: the Buyer's Guide
3. Which of the following is the Gramm-Leach-Bliley Act primarily aimed at
regulating? - ANSWER: the disclosure of personal financial information to third
parties
4. What is the purpose of the Producer Database? - ANSWER: streamline producer
licensing procedures
5. For how long must an organization maintain a record of a person's request to be
placed on a do-not-call list? - ANSWER: 5 years
1. Which of the following must be considered in making a suitable fixed annuity
recommendation to a customer? - ANSWER: a. the customer's financial status
b. the customer's tax status
c. the customer's investment objectives
d. all of the above
Which of the following is not a prohibited practice? - ANSWER: giving a gift of
nominal value to an insurance applicant
Which of the following terms refers to the unethical and illegal practice of making a
misleading statement about an insurance policy to induce a person to buy a policy
with another insurer? - ANSWER: twisting
When meeting with a prospect to discuss disability income insurance, Agent Tyler
makes disparaging comments about the financial stability and reputation of a
, competitor to dissuade the prospect from purchasing its policies. Which unfair trade
practice has Agent Tyler committed? - ANSWER: defamation
What type of authority exists when a reasonable consumer would infer from the
circumstances that the agent has authority to act on behalf of the principal? -
ANSWER: implied authority
Which of the following is the most severe step a state insurance department can
take in disciplining an insurer? - ANSWER: liquidation
Which of the following is not an example of an unfair claims practice? - ANSWER:
setting a time limit for submitting proof of loss
Sam was involved in a car accident. The other driver told Sam that the two of them
should agree on a settlement now because the longer Sam waited, the more it was
going to cost him. What should Sam do? - ANSWER: decline because of his policy's
cooperation provisions
Norman is involved in filing a claim for a loss that is large and very complex. He feels
that if he handles it himself, there is a good chance he will end up with considerably
less than the loss warrants. Which of the following should Norman hire to help him
with the claim? - ANSWER: public adjuster
Jamie has a liability policy with ABC insurance. He is being sued for damages by
Margie, who is also an ABC policyholder. Which statement best describes ABC's
duties? - ANSWER: It has a higher duty to Jamie.
A minitrial is similar to arbitration in that the findings of the third party are always
binding. - ANSWER: False
Which of the following statements regarding class actions is not true? - ANSWER: An
injured party cannot become a member of the class without making a formal request
to the court.
Which statement is true about arbitration? - ANSWER: The submission agreement is
a binding contract.
How will a court interpret an ambiguous provision in an insurance policy? - ANSWER:
A court will always interpret ambiguous provisions in favor of the insured.
In addition to a damage award of $50,000, the court also awarded Fran an additional
$300,000 because of the insurer's unreasonable behavior in refusing to settle the
claim. What type of additional damages did the court most likely award? - ANSWER:
punitive damages
1. Which of the following is applied to all expenses in a health insurance policy
during a specified period? - ANSWER: b. all-cause deductible
AND ANSWERS
1. Which of the following exempted insurance companies from federal antitrust
legislation? - ANSWER: the McCarran-Ferguson Act
Which statement about the NAIC is correct? - ANSWER: The NAIC prepares model
laws, regulations, and guidelines for adoption by the states.
4. The NAIC issued a model law on long-term care insurance. Which statement about
the model law's effectiveness is correct? - ANSWER: The model law becomes
effective in a state if approved by the state legislature.
Which statement about life insurance illustrations is correct? - ANSWER: Illustrations
must include the company's name, the date the illustration was prepared, initial
death benefit, and the name, age, and gender of the proposed insured.
2. Which of the following provides general information about life insurance policies
to potential buyers? - ANSWER: the Buyer's Guide
3. Which of the following is the Gramm-Leach-Bliley Act primarily aimed at
regulating? - ANSWER: the disclosure of personal financial information to third
parties
4. What is the purpose of the Producer Database? - ANSWER: streamline producer
licensing procedures
5. For how long must an organization maintain a record of a person's request to be
placed on a do-not-call list? - ANSWER: 5 years
1. Which of the following must be considered in making a suitable fixed annuity
recommendation to a customer? - ANSWER: a. the customer's financial status
b. the customer's tax status
c. the customer's investment objectives
d. all of the above
Which of the following is not a prohibited practice? - ANSWER: giving a gift of
nominal value to an insurance applicant
Which of the following terms refers to the unethical and illegal practice of making a
misleading statement about an insurance policy to induce a person to buy a policy
with another insurer? - ANSWER: twisting
When meeting with a prospect to discuss disability income insurance, Agent Tyler
makes disparaging comments about the financial stability and reputation of a
, competitor to dissuade the prospect from purchasing its policies. Which unfair trade
practice has Agent Tyler committed? - ANSWER: defamation
What type of authority exists when a reasonable consumer would infer from the
circumstances that the agent has authority to act on behalf of the principal? -
ANSWER: implied authority
Which of the following is the most severe step a state insurance department can
take in disciplining an insurer? - ANSWER: liquidation
Which of the following is not an example of an unfair claims practice? - ANSWER:
setting a time limit for submitting proof of loss
Sam was involved in a car accident. The other driver told Sam that the two of them
should agree on a settlement now because the longer Sam waited, the more it was
going to cost him. What should Sam do? - ANSWER: decline because of his policy's
cooperation provisions
Norman is involved in filing a claim for a loss that is large and very complex. He feels
that if he handles it himself, there is a good chance he will end up with considerably
less than the loss warrants. Which of the following should Norman hire to help him
with the claim? - ANSWER: public adjuster
Jamie has a liability policy with ABC insurance. He is being sued for damages by
Margie, who is also an ABC policyholder. Which statement best describes ABC's
duties? - ANSWER: It has a higher duty to Jamie.
A minitrial is similar to arbitration in that the findings of the third party are always
binding. - ANSWER: False
Which of the following statements regarding class actions is not true? - ANSWER: An
injured party cannot become a member of the class without making a formal request
to the court.
Which statement is true about arbitration? - ANSWER: The submission agreement is
a binding contract.
How will a court interpret an ambiguous provision in an insurance policy? - ANSWER:
A court will always interpret ambiguous provisions in favor of the insured.
In addition to a damage award of $50,000, the court also awarded Fran an additional
$300,000 because of the insurer's unreasonable behavior in refusing to settle the
claim. What type of additional damages did the court most likely award? - ANSWER:
punitive damages
1. Which of the following is applied to all expenses in a health insurance policy
during a specified period? - ANSWER: b. all-cause deductible
