4/11/25, 9:16 webce insurance exam Flashcards |
PM
WEBCE INSURANCE EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED
Terms in this set (55)
1. Which of the following exempted the McCarran-Ferguson Act
insurance companies from federal
antitrust legislation?
2. Which of the following has primary
responsibility for regulating the
insurance industry?
a. the states
Which statement about the NAIC is The NAIC prepares model laws, regulations, and guidelines for adoption by the
correct? states.
4. The NAIC issued a model law on long- The model law becomes effective in a state if approved by the state legislature.
term care insurance. Which statement
about the model law's effectiveness is
correct?
Illustrations must include the company's name, the date the illustration was
Which statement about life
prepared, initial death benefit, and the name, age, and gender of the proposed
insurance illustrations is correct?
insured.
2. Which of the following provides the Buyer's Guide
general information about life insurance
policies to potential buyers?
3. Which of the following is the Gramm- the disclosure of personal financial information to third parties
Leach-Bliley Act primarily aimed at
regulating?
4. What is the purpose of the Producer streamline producer licensing procedures
Database?
5. For how long must an organization 5 years
maintain a record of a person's request
to be placed on a do-not-call list?
a.the customer's financial status
1. Which of the following must be
b. the customer's tax status
considered in making a suitable fixed
c. the customer's investment objectives
annuity recommendation to a customer?
d. all of the above
Which of the following is not a prohibited giving a gift of nominal value to an insurance applicant
practice?
Which of the following terms refers to twisting
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?
When meeting with a prospect to discuss defamation
disability income insurance, Agent
1/
5
, 4/11/25, 9:16 webce insurance exam Flashcards |
PM
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?
What type of authority exists when a implied authority
reasonable consumer would infer from
the circumstances that the agent has
authority to act on behalf of the
principal?
Which of the following is the most severe liquidation
step a state insurance department
can take in disciplining an insurer?
Which of the following is not an example setting a time limit for submitting proof of loss
of an unfair claims practice?
Sam was involved in a car accident. The decline because of his policy's cooperation provisions
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?
Norman is involved in filing a claim for a public adjuster
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?
Jamie has a liability policy with ABC It has a higher duty to Jamie.
insurance. He is being sued for damages
by Margie, who is also an ABC
policyholder. Which statement best
describes ABC's duties?
A minitrial is similar to arbitration in that False
the findings of the third party are always
binding.
Which of the following statements An injured party cannot become a member of the class without making a formal
regarding class actions is not true? request to the court.
Which statement is true about arbitration? The submission agreement is a binding contract.
How will a court interpret an ambiguous A court will always interpret ambiguous provisions in favor of the insured.
provision in an insurance policy?
In addition to a damage award of punitive damages
$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?
1. Which of the following is applied to all b. all-cause deductible
expenses in a health insurance policy
during a specified period?
2/
5
PM
WEBCE INSURANCE EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED
Terms in this set (55)
1. Which of the following exempted the McCarran-Ferguson Act
insurance companies from federal
antitrust legislation?
2. Which of the following has primary
responsibility for regulating the
insurance industry?
a. the states
Which statement about the NAIC is The NAIC prepares model laws, regulations, and guidelines for adoption by the
correct? states.
4. The NAIC issued a model law on long- The model law becomes effective in a state if approved by the state legislature.
term care insurance. Which statement
about the model law's effectiveness is
correct?
Illustrations must include the company's name, the date the illustration was
Which statement about life
prepared, initial death benefit, and the name, age, and gender of the proposed
insurance illustrations is correct?
insured.
2. Which of the following provides the Buyer's Guide
general information about life insurance
policies to potential buyers?
3. Which of the following is the Gramm- the disclosure of personal financial information to third parties
Leach-Bliley Act primarily aimed at
regulating?
4. What is the purpose of the Producer streamline producer licensing procedures
Database?
5. For how long must an organization 5 years
maintain a record of a person's request
to be placed on a do-not-call list?
a.the customer's financial status
1. Which of the following must be
b. the customer's tax status
considered in making a suitable fixed
c. the customer's investment objectives
annuity recommendation to a customer?
d. all of the above
Which of the following is not a prohibited giving a gift of nominal value to an insurance applicant
practice?
Which of the following terms refers to twisting
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?
When meeting with a prospect to discuss defamation
disability income insurance, Agent
1/
5
, 4/11/25, 9:16 webce insurance exam Flashcards |
PM
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?
What type of authority exists when a implied authority
reasonable consumer would infer from
the circumstances that the agent has
authority to act on behalf of the
principal?
Which of the following is the most severe liquidation
step a state insurance department
can take in disciplining an insurer?
Which of the following is not an example setting a time limit for submitting proof of loss
of an unfair claims practice?
Sam was involved in a car accident. The decline because of his policy's cooperation provisions
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?
Norman is involved in filing a claim for a public adjuster
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?
Jamie has a liability policy with ABC It has a higher duty to Jamie.
insurance. He is being sued for damages
by Margie, who is also an ABC
policyholder. Which statement best
describes ABC's duties?
A minitrial is similar to arbitration in that False
the findings of the third party are always
binding.
Which of the following statements An injured party cannot become a member of the class without making a formal
regarding class actions is not true? request to the court.
Which statement is true about arbitration? The submission agreement is a binding contract.
How will a court interpret an ambiguous A court will always interpret ambiguous provisions in favor of the insured.
provision in an insurance policy?
In addition to a damage award of punitive damages
$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?
1. Which of the following is applied to all b. all-cause deductible
expenses in a health insurance policy
during a specified period?
2/
5
