4/11/25, 9:23
PM
WEBCE TEST QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED LATEST RELEASE 2025
23 studiers today 4.8 (6 reviews)
Save
Terms in this set (115)
which of the following situations presents knowing that his family is depending on him, Frank wants to insure his own life
a situation of pure risk?
only pure risk is insurable. Pure risk may only result in a loss, unlike speculative risk
-knowing that his family is depending which may result in a gain.
on him, Frank wants to insure his life
-wanting to increase his retirement
savings, Saul invests his life savings in the
stock market
-Ralph takes a second mortgage on his
house and uses the proceeds to gamble
-wanting better job security, Ron cashes
in his life insurance to start his own
business
Agent Jill received a letter from the a fine up to $100 per day per violation
Department of insurance asking her to
submit verification of having completed A producer has 30 days to respond to a written inquiry from the Department
the continued education requirements for
the previous licensing period. Three
weeks later, the department sent another
letter. Which penalty may the Department
impose if Jill has still not responded to
their request a month later?
1/18
,4/11/25, 9:23
PM
Jim's policy expired due to nonpayment estoppel
of premium. His agent sends him a
statement the following month without
notice of the lapse. If Jim pays the
premium and later suffers a loss for
which he files a claim, what will
prevent the
insurer from denying the claim?
-estoppel
-utmost good faith
-reasonable expectations
-waiver
BBC insurers filed premium rates for its 30 days
new line of variable products on January
15. Within how many days must the all rate filings are subject to a 30-day waiting period before they become
commissioner approve or disapprove the effective.
rates?
The commissioner of insurance can 5 years
examine the business accounts,
transactions, and records of insurers and
producers as often as necessary, but must
do so at least once in how many
years?
Acme Insurance and Apogee insurance they are engaging in unfair and prohibited business practices
agree to offer different premium rates for
persons of equal risk within a they are agreeing to unreasonable restraint of trade in insurance business, and
particular they are engaging in unfair discrimination
class. They also agree to limit
benefits paid to insureds within this
class if the
insureds live within certain counties of PA.
What are Acme and Apogee engaging in?
-acceptable marketing and underwriting
practices
-unfair and prohibited business practices
-insurance fraud
-false advertising
which of the following is NOT a remedy imprisonment is not a punishment for committing an unfair method of competition
available to the PA commissioner of
insurance for committing an unfair you cannot be arrested for committing an unfair method of competition
method of competition?
-imprisonment
-cease and desist order
-suspension of license
-revocation of license
2/18
, 4/11/25, 9:23
PM
which of the following is NOT an ailing to promptly settle a claim for which liability is uncertain is NOT an unfair
unfair claims settlement practice if claims settlement practice
committed by an insurance company
in PA?
-failing to promptly acknowledge
communications about claims
-failing to promptly settle a claim for
which liability is uncertain
-appealing from an arbitration award
in favor of an insured to compel the
insured to accept a lower settlement
-failing to affirm or deny coverage within
a reasonable time after completing a
claim investigation
Jeff is a licensed insurance producer Jeff has 30 days to notify the PA commissioner of insurance of the disciplinary
in both PA and NY. he is charged action being taken against him
with embezzlement in NY, and his first
pretrial hearing is set for March 1. He
must notify the PA commissioner of
insurance within how many days of
this hearing?
which of the following is NOT an failing to promptly settle a claim for which liability is uncertain is not an unfair
unfair claims settlement practice if claims settlement practice
committed by an insurance company
in PA?
-failing to promptly acknowledge
communications about claims
-failing to promptly settle a claim for
which liability is uncertain
-offering to settle claims for less than due
to encourage litigation
-raising policy defenses to reduce a claim
Stacy is a captive agent for best rates Stacy has express authority due to the contract between her and the insurance
insurance company. Her agency contract company specifically allowing her act in such a way
gives her permission to print and use
business cards with the company's
logo and submit applications for its
policy.
What type of authority does stacy have
to take these actions?
to boost her sales at the end of the year, rebating
agent Trudy started offering potential
clients a $250 cash gift card in exchange its illegal to offer gifts in exchange for the purchase of an insurance policy
for purchasing a life insurance policy.
which ethical sales practice has she
violated?
-twisting
-churning
-rebating
-false information
3/18
PM
WEBCE TEST QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED LATEST RELEASE 2025
23 studiers today 4.8 (6 reviews)
Save
Terms in this set (115)
which of the following situations presents knowing that his family is depending on him, Frank wants to insure his own life
a situation of pure risk?
only pure risk is insurable. Pure risk may only result in a loss, unlike speculative risk
-knowing that his family is depending which may result in a gain.
on him, Frank wants to insure his life
-wanting to increase his retirement
savings, Saul invests his life savings in the
stock market
-Ralph takes a second mortgage on his
house and uses the proceeds to gamble
-wanting better job security, Ron cashes
in his life insurance to start his own
business
Agent Jill received a letter from the a fine up to $100 per day per violation
Department of insurance asking her to
submit verification of having completed A producer has 30 days to respond to a written inquiry from the Department
the continued education requirements for
the previous licensing period. Three
weeks later, the department sent another
letter. Which penalty may the Department
impose if Jill has still not responded to
their request a month later?
1/18
,4/11/25, 9:23
PM
Jim's policy expired due to nonpayment estoppel
of premium. His agent sends him a
statement the following month without
notice of the lapse. If Jim pays the
premium and later suffers a loss for
which he files a claim, what will
prevent the
insurer from denying the claim?
-estoppel
-utmost good faith
-reasonable expectations
-waiver
BBC insurers filed premium rates for its 30 days
new line of variable products on January
15. Within how many days must the all rate filings are subject to a 30-day waiting period before they become
commissioner approve or disapprove the effective.
rates?
The commissioner of insurance can 5 years
examine the business accounts,
transactions, and records of insurers and
producers as often as necessary, but must
do so at least once in how many
years?
Acme Insurance and Apogee insurance they are engaging in unfair and prohibited business practices
agree to offer different premium rates for
persons of equal risk within a they are agreeing to unreasonable restraint of trade in insurance business, and
particular they are engaging in unfair discrimination
class. They also agree to limit
benefits paid to insureds within this
class if the
insureds live within certain counties of PA.
What are Acme and Apogee engaging in?
-acceptable marketing and underwriting
practices
-unfair and prohibited business practices
-insurance fraud
-false advertising
which of the following is NOT a remedy imprisonment is not a punishment for committing an unfair method of competition
available to the PA commissioner of
insurance for committing an unfair you cannot be arrested for committing an unfair method of competition
method of competition?
-imprisonment
-cease and desist order
-suspension of license
-revocation of license
2/18
, 4/11/25, 9:23
PM
which of the following is NOT an ailing to promptly settle a claim for which liability is uncertain is NOT an unfair
unfair claims settlement practice if claims settlement practice
committed by an insurance company
in PA?
-failing to promptly acknowledge
communications about claims
-failing to promptly settle a claim for
which liability is uncertain
-appealing from an arbitration award
in favor of an insured to compel the
insured to accept a lower settlement
-failing to affirm or deny coverage within
a reasonable time after completing a
claim investigation
Jeff is a licensed insurance producer Jeff has 30 days to notify the PA commissioner of insurance of the disciplinary
in both PA and NY. he is charged action being taken against him
with embezzlement in NY, and his first
pretrial hearing is set for March 1. He
must notify the PA commissioner of
insurance within how many days of
this hearing?
which of the following is NOT an failing to promptly settle a claim for which liability is uncertain is not an unfair
unfair claims settlement practice if claims settlement practice
committed by an insurance company
in PA?
-failing to promptly acknowledge
communications about claims
-failing to promptly settle a claim for
which liability is uncertain
-offering to settle claims for less than due
to encourage litigation
-raising policy defenses to reduce a claim
Stacy is a captive agent for best rates Stacy has express authority due to the contract between her and the insurance
insurance company. Her agency contract company specifically allowing her act in such a way
gives her permission to print and use
business cards with the company's
logo and submit applications for its
policy.
What type of authority does stacy have
to take these actions?
to boost her sales at the end of the year, rebating
agent Trudy started offering potential
clients a $250 cash gift card in exchange its illegal to offer gifts in exchange for the purchase of an insurance policy
for purchasing a life insurance policy.
which ethical sales practice has she
violated?
-twisting
-churning
-rebating
-false information
3/18
