WebCE Quizzes: General Insurance & Life
m m m m m
Insurance Exam With 100% Correct Answ
m m m m m m
ers 2023
m
Buyingmlifemormhealth minsurancemisman mexamplemof mwhich mriskmmanagementmtechnique?
riskmavoidance
mriskmreduction
mriskmretention
riskmtransferm-mCorrectmAnswer-riskmtransfer
Whatmismthemmathematical mconceptmofmprobabilitymthatmhelpsminsurersmestimatemthemstatis
tical mlikelihoodmof mmortalitymormmorbiditymlossesmatmanymgiven mage?
lawmofmlargemnumber
smunderwritingmprinci
plemlaw mof mprobability
actuarial mprinciplem-mCorrectmAnswer-law mof mlargemnumbers
Amperson mwhomrefusesmtomengagemismriskymactivitiesmlikemrockmclimbingmformfearmof minjurym
ormdeath mismdemonstratingmwhich mriskmmanagementmtechnique?
riskmavoidance
mriskmreduction
mriskmretention
riskmsharingm-mCorrectmAnswer-riskmavoidance
Which mof mthemfollowingmisman minsurablemrisk?
thempossibilitymofmlosingmmoneyminmstockminvestmentsmt
hempossibilitymofmlosingmmoneymgamblingminmLasmVegas
thempossibilitymof mbecomingmdisabledmandmunablemtomearn man mincome
thempossibilitymof mone'smhomemvaluemdecreasingmduemtomamdropmin mmarketmpricesm-
mCorrectmAnswer-thempossibilitymofmbecomingmdisabled mandmunablemtomearn man mincome
AllmthemfollowingmstatementsmregardingmreinsurancemaremcorrectmEXCEPT:
Reinsurancemismamrisk-sharingmprocessmusedmbyminsurancemcompanies.
Claimsmarempaidmtomthempolicyownermseparatelymbymeachminsurermparticipatingminmthemreinsura
ncemagreement.
Theminsurermacceptingmsomemof mthemriskmbeingmtransferredmfrommanotherminsurermismknow
n masmthemreinsuringmcompany.
,Theminsurermseekingmtomtransfermsomemofmitsmriskmtomanotherminsurermismknown masmthemce
dingmcompany.m-mCorrectmAnswer-
Claimsmarempaidmtomthempolicyownermseparatelymbymeachminsurermparticipatingminmthemrein
surancemagreement.
Allmof mthemfollowingmaremcharacteristicsmof mamstockminsurancemcompanymEXCEPT:
Theymaremgovernedmbymamboardmof mdirectors
.mTheymmaymissuemdividends.
Theymhavemminimummfinancial mcapital mrequirementsmthatmmustmbemmetmbeforemtheymcanmc
onductmbusiness.
Theymaremownedmbympolicyowners.m-mCorrectmAnswer-Theymaremownedmbympolicyowners.
Allmof mthemfollowingmstatementsmregardingmthemcareermagencymdistributionmsystemmaremcor
rectmEXCEPT:
Themmanagerial mformmof mcareermagencymsystemmusesmcompanymemployeesmasmthemagencym
managers.
Theremaremtwomtypes,mthemgeneral magencymsystemmandmthemmanagerial msyste
m.mItmusesmagentsmwhomprimarilymif mnotmexclusivelymrepresentmoneminsurer.
Personal mproducingmgeneral magentsm(PPGAs)maremcommonlymhiredmtommanagemcareermagen
cies.m-mCorrectmAnswer-
Personal mproducingmgeneralmagentsm(PPGAs)maremcommonlymhiredmtommanagemcareermagen
cies.
Themfederal mRiskmRetentionmActmofm1986mcontainsmguidelinesmformwhichmof mthemfollowingmentiti
es?
reinsurancemcompanies
surplusmlinesminsurancemcompaniesmFratern
alminsurancemcompanies
riskmretention mgroupsm-mCorrectmAnswer-riskmretention mgroups
Which mof mthemfollowingmbestmdescribesman magent'smresponsibilities?
An magentmhasmnomfiduciarymdutymtowardminsurers,mapplicants,morminsureds.
An magentmhasmtomactmin mthembestminterestsmof minsureds,mapplicants,mandminsurers.
An magentmonlymhasmtomactminmthembestminterestsmof mtheminsuredmormapplicant,mbutmnotmthe
minsurer.
An magentmonlymhasmtomactmin mthembestminterestsmof mtheminsurermhemormshemrepresents.m-
mCorrectmAnswer-
An magentmhasmtomactmin mthembestminterestsmof minsureds,mapplicants,mandminsurers.
An minsurancemproducermtellsmamlifeminsurancemapplicantmthatmhemhasmthemauthoritymtomwaiv
emthemmedical mexammthatmismnormallymrequiredmbymtheminsurermwith meverymapplication.mTh
eminsurermmaymbemrequiredmtomacceptmthemapplicationmwithoutmammedical mexammduemtomth
emproducer's:
,impliedmauthoritym
expressmauthoritym
apparentmauthority
imputedmauthoritym-mCorrectmAnswer-apparentmauthority
Allmof mthemfollowingmarempartmof mamproducer'smresponsibilitiesmtoman mapplicantmEXCEPT:
avoidingmreplacingmanminsurancempolicymunlessmdoingmsomwill mclearlymbenefitmthemapplican
tmresearch motherminsurancemcompanies'minsurancemproductsmif mrequestedmbymthemapplica
ntmdisclosemallmimportantminformation maboutmamproposedmpolicy
recommendminsurancemproductsmthatmaremsuitablemformthemcustomer'smneedsm-
mCorrectmAnswer-
research motherminsurancemcompanies'minsurancemproductsmif mrequestedmbymthemapplic
ant
ThempurposemformthemPolicymSummary,mwhichmmustmbemgivenmtomeveryminsurancemapplicantmb
eforeman mapplication mismsigned,mismto:
explain mthemstep-by-
stepmprocessminvolvedminmpurchasingmthemrecommendedmproductmexplainmthemgeneral mf
eatures,mbenefits,mandmconditionsmof mthemtypemof minsurancembeingmconsidered
disclosemall mthemhidden mcostsmassociatedmwith mthempolicymbeingmappliedmfor
providembuyersmwithmdetailsmof mthemspecificminsurancemcontractmtheymaremconsideringmform
purchasem-mCorrectmAnswer-
providembuyersmwith mdetailsmofmthemspecificminsurancemcontractmtheymaremconsideringmformp
urchase
If man mapplicantmformanminsurancempolicymsubmitsmanmapplicationmwithoutmthemfirstmpremium
,mwhich mof mthemfollowingmismcorrect?
Theminsurermmaymnotmmakemamcounteroffermtomthemapplicant.
mThemapplicantmhasminvited mtheminsurermtommakeman moffer.
Theminsurermhasmmademan moffermtomthemapplicant.
Themapplicantmhasmmademan moffermtomtheminsurer.m-mCorrectmAnswer-
Themapplicantmhasminvitedmtheminsurermtommakeman moffer.
How mlongmfrommwhenmanminsurancemcontractmismissuedmdoesmanminsurancemcompanymhav
emtomvoidmamlifeminsurancempolicymon mthembasismof mfraud?
12mmonths
24mmonths
18mmonths
6mmonthsm-mCorrectmAnswer-24mmonths
Statementsmmademon mamlifeminsurancemapplication maremconsidered:
conditional mpromisesmrepresentati
ons
, warranties
unconditional mpromisesm-mCorrectmAnswer-representations
An mapplicantmformam$500,000mwholemlifeminsurancempolicympaysmtheminitial mpremiummalong
mwith mhismapplication.mIn mthismcase,mwhatmhasmthemapplicantmdone?
acceptedman moffermfrommtheminsurermaccept
edmamcounteroffermfrommtheminsurermmadema
mcounteroffermtomtheminsurer
mademan moffermtomtheminsurerm-mCorrectmAnswer-mademan moffermtomtheminsurer
AllmthemfollowingmstatementsmregardingmperilsmandmhazardsmaremcorrectmEXCEPT:
Amhazardmismamconditionmthatmraisesmthemchancemof mamperilmoccurring
.mSmokingmcigarettesmisman mexamplemof mamperil.
Amperil mismthemimmediatemcausemof mamlossmandmismthemeventmthatminsurancemprotectsmagain
st.mIndifferencemtomlossmisman mexamplemof mamhazard.m-mCorrectmAnswer-
Smokingmcigarettesmisman mexamplemof mamperil.
Themtendencymof mampersonmdiagnosedmwithmamseriousmillnessmtomtrymtombuymlifemormhealth minsur
ancemismknown mas:
adversemselection
mconcealment
riskmavoidance
exposuremreduction m-mCorrectmAnswer-adversemselection
Allmof mthemfollowingmaremelementsmof man minsurablemriskmEXCEPT:
Anymlossesmresultingmfrommtheminsuredmperilmmustmbemdefinablemasmtomtime,mcause,mandml
ocation.
Themlossmmustmbemmeasurable.
Theminsuredmperil mmustmbemoutsidemof mtheminsured'smcontrol.
Lossesmresultingmfrommtheminsuredmperil mmustmbempotentiallymcatastrophic.m-
mCorrectmAnswer-
Lossesmresultingmfrommtheminsuredmperil mmustmbempotentiallymcatastrophic.
Fromman minsurancemperspective,mthemtermm"lossmexposure" mmeans:
themextentmtomwhich man minsurermdisclosesmitsmmarketingmpractices
themextentmtomwhichminsurersmaremrequiredmtomopenmtheirmfinancial mbooksmformpublicminspe
ction
themextentmtomwhich man minsurermismsubjectmtomampossiblemloss
themextentmtomwhichmanminsurermdisclosesmthemcomponentsmmakingmupmitsmpolicympremiu
mmratesm-mCorrectmAnswer-themextentmtomwhichmanminsurermismsubjectmtomampossiblemloss
m m m m m
Insurance Exam With 100% Correct Answ
m m m m m m
ers 2023
m
Buyingmlifemormhealth minsurancemisman mexamplemof mwhich mriskmmanagementmtechnique?
riskmavoidance
mriskmreduction
mriskmretention
riskmtransferm-mCorrectmAnswer-riskmtransfer
Whatmismthemmathematical mconceptmofmprobabilitymthatmhelpsminsurersmestimatemthemstatis
tical mlikelihoodmof mmortalitymormmorbiditymlossesmatmanymgiven mage?
lawmofmlargemnumber
smunderwritingmprinci
plemlaw mof mprobability
actuarial mprinciplem-mCorrectmAnswer-law mof mlargemnumbers
Amperson mwhomrefusesmtomengagemismriskymactivitiesmlikemrockmclimbingmformfearmof minjurym
ormdeath mismdemonstratingmwhich mriskmmanagementmtechnique?
riskmavoidance
mriskmreduction
mriskmretention
riskmsharingm-mCorrectmAnswer-riskmavoidance
Which mof mthemfollowingmisman minsurablemrisk?
thempossibilitymofmlosingmmoneyminmstockminvestmentsmt
hempossibilitymofmlosingmmoneymgamblingminmLasmVegas
thempossibilitymof mbecomingmdisabledmandmunablemtomearn man mincome
thempossibilitymof mone'smhomemvaluemdecreasingmduemtomamdropmin mmarketmpricesm-
mCorrectmAnswer-thempossibilitymofmbecomingmdisabled mandmunablemtomearn man mincome
AllmthemfollowingmstatementsmregardingmreinsurancemaremcorrectmEXCEPT:
Reinsurancemismamrisk-sharingmprocessmusedmbyminsurancemcompanies.
Claimsmarempaidmtomthempolicyownermseparatelymbymeachminsurermparticipatingminmthemreinsura
ncemagreement.
Theminsurermacceptingmsomemof mthemriskmbeingmtransferredmfrommanotherminsurermismknow
n masmthemreinsuringmcompany.
,Theminsurermseekingmtomtransfermsomemofmitsmriskmtomanotherminsurermismknown masmthemce
dingmcompany.m-mCorrectmAnswer-
Claimsmarempaidmtomthempolicyownermseparatelymbymeachminsurermparticipatingminmthemrein
surancemagreement.
Allmof mthemfollowingmaremcharacteristicsmof mamstockminsurancemcompanymEXCEPT:
Theymaremgovernedmbymamboardmof mdirectors
.mTheymmaymissuemdividends.
Theymhavemminimummfinancial mcapital mrequirementsmthatmmustmbemmetmbeforemtheymcanmc
onductmbusiness.
Theymaremownedmbympolicyowners.m-mCorrectmAnswer-Theymaremownedmbympolicyowners.
Allmof mthemfollowingmstatementsmregardingmthemcareermagencymdistributionmsystemmaremcor
rectmEXCEPT:
Themmanagerial mformmof mcareermagencymsystemmusesmcompanymemployeesmasmthemagencym
managers.
Theremaremtwomtypes,mthemgeneral magencymsystemmandmthemmanagerial msyste
m.mItmusesmagentsmwhomprimarilymif mnotmexclusivelymrepresentmoneminsurer.
Personal mproducingmgeneral magentsm(PPGAs)maremcommonlymhiredmtommanagemcareermagen
cies.m-mCorrectmAnswer-
Personal mproducingmgeneralmagentsm(PPGAs)maremcommonlymhiredmtommanagemcareermagen
cies.
Themfederal mRiskmRetentionmActmofm1986mcontainsmguidelinesmformwhichmof mthemfollowingmentiti
es?
reinsurancemcompanies
surplusmlinesminsurancemcompaniesmFratern
alminsurancemcompanies
riskmretention mgroupsm-mCorrectmAnswer-riskmretention mgroups
Which mof mthemfollowingmbestmdescribesman magent'smresponsibilities?
An magentmhasmnomfiduciarymdutymtowardminsurers,mapplicants,morminsureds.
An magentmhasmtomactmin mthembestminterestsmof minsureds,mapplicants,mandminsurers.
An magentmonlymhasmtomactminmthembestminterestsmof mtheminsuredmormapplicant,mbutmnotmthe
minsurer.
An magentmonlymhasmtomactmin mthembestminterestsmof mtheminsurermhemormshemrepresents.m-
mCorrectmAnswer-
An magentmhasmtomactmin mthembestminterestsmof minsureds,mapplicants,mandminsurers.
An minsurancemproducermtellsmamlifeminsurancemapplicantmthatmhemhasmthemauthoritymtomwaiv
emthemmedical mexammthatmismnormallymrequiredmbymtheminsurermwith meverymapplication.mTh
eminsurermmaymbemrequiredmtomacceptmthemapplicationmwithoutmammedical mexammduemtomth
emproducer's:
,impliedmauthoritym
expressmauthoritym
apparentmauthority
imputedmauthoritym-mCorrectmAnswer-apparentmauthority
Allmof mthemfollowingmarempartmof mamproducer'smresponsibilitiesmtoman mapplicantmEXCEPT:
avoidingmreplacingmanminsurancempolicymunlessmdoingmsomwill mclearlymbenefitmthemapplican
tmresearch motherminsurancemcompanies'minsurancemproductsmif mrequestedmbymthemapplica
ntmdisclosemallmimportantminformation maboutmamproposedmpolicy
recommendminsurancemproductsmthatmaremsuitablemformthemcustomer'smneedsm-
mCorrectmAnswer-
research motherminsurancemcompanies'minsurancemproductsmif mrequestedmbymthemapplic
ant
ThempurposemformthemPolicymSummary,mwhichmmustmbemgivenmtomeveryminsurancemapplicantmb
eforeman mapplication mismsigned,mismto:
explain mthemstep-by-
stepmprocessminvolvedminmpurchasingmthemrecommendedmproductmexplainmthemgeneral mf
eatures,mbenefits,mandmconditionsmof mthemtypemof minsurancembeingmconsidered
disclosemall mthemhidden mcostsmassociatedmwith mthempolicymbeingmappliedmfor
providembuyersmwithmdetailsmof mthemspecificminsurancemcontractmtheymaremconsideringmform
purchasem-mCorrectmAnswer-
providembuyersmwith mdetailsmofmthemspecificminsurancemcontractmtheymaremconsideringmformp
urchase
If man mapplicantmformanminsurancempolicymsubmitsmanmapplicationmwithoutmthemfirstmpremium
,mwhich mof mthemfollowingmismcorrect?
Theminsurermmaymnotmmakemamcounteroffermtomthemapplicant.
mThemapplicantmhasminvited mtheminsurermtommakeman moffer.
Theminsurermhasmmademan moffermtomthemapplicant.
Themapplicantmhasmmademan moffermtomtheminsurer.m-mCorrectmAnswer-
Themapplicantmhasminvitedmtheminsurermtommakeman moffer.
How mlongmfrommwhenmanminsurancemcontractmismissuedmdoesmanminsurancemcompanymhav
emtomvoidmamlifeminsurancempolicymon mthembasismof mfraud?
12mmonths
24mmonths
18mmonths
6mmonthsm-mCorrectmAnswer-24mmonths
Statementsmmademon mamlifeminsurancemapplication maremconsidered:
conditional mpromisesmrepresentati
ons
, warranties
unconditional mpromisesm-mCorrectmAnswer-representations
An mapplicantmformam$500,000mwholemlifeminsurancempolicympaysmtheminitial mpremiummalong
mwith mhismapplication.mIn mthismcase,mwhatmhasmthemapplicantmdone?
acceptedman moffermfrommtheminsurermaccept
edmamcounteroffermfrommtheminsurermmadema
mcounteroffermtomtheminsurer
mademan moffermtomtheminsurerm-mCorrectmAnswer-mademan moffermtomtheminsurer
AllmthemfollowingmstatementsmregardingmperilsmandmhazardsmaremcorrectmEXCEPT:
Amhazardmismamconditionmthatmraisesmthemchancemof mamperilmoccurring
.mSmokingmcigarettesmisman mexamplemof mamperil.
Amperil mismthemimmediatemcausemof mamlossmandmismthemeventmthatminsurancemprotectsmagain
st.mIndifferencemtomlossmisman mexamplemof mamhazard.m-mCorrectmAnswer-
Smokingmcigarettesmisman mexamplemof mamperil.
Themtendencymof mampersonmdiagnosedmwithmamseriousmillnessmtomtrymtombuymlifemormhealth minsur
ancemismknown mas:
adversemselection
mconcealment
riskmavoidance
exposuremreduction m-mCorrectmAnswer-adversemselection
Allmof mthemfollowingmaremelementsmof man minsurablemriskmEXCEPT:
Anymlossesmresultingmfrommtheminsuredmperilmmustmbemdefinablemasmtomtime,mcause,mandml
ocation.
Themlossmmustmbemmeasurable.
Theminsuredmperil mmustmbemoutsidemof mtheminsured'smcontrol.
Lossesmresultingmfrommtheminsuredmperil mmustmbempotentiallymcatastrophic.m-
mCorrectmAnswer-
Lossesmresultingmfrommtheminsuredmperil mmustmbempotentiallymcatastrophic.
Fromman minsurancemperspective,mthemtermm"lossmexposure" mmeans:
themextentmtomwhich man minsurermdisclosesmitsmmarketingmpractices
themextentmtomwhichminsurersmaremrequiredmtomopenmtheirmfinancial mbooksmformpublicminspe
ction
themextentmtomwhich man minsurermismsubjectmtomampossiblemloss
themextentmtomwhichmanminsurermdisclosesmthemcomponentsmmakingmupmitsmpolicympremiu
mmratesm-mCorrectmAnswer-themextentmtomwhichmanminsurermismsubjectmtomampossiblemloss
