Webce Insurance test questions and answers with complete
Solution GRADED A
Agent Thompson received a letter from the Department of Insurance asking her
... [Show More] to
provide proof of completing the continuing education requirements. Within how many
days must Agent Thompson respond to the Department's inquiry?
20
30
10
45 - Answer- 10 days
Abby lives in Ohio, where she is licensed as an insurance producer. She wants to apply
for a nonresident license in Pennsylvania. Which of the following conditions must she
satisfy?
She must move to Pennsylvania.
She must surrender her Ohio license.
She must be sponsored by a producer licensed in Pennsylvania.
She must show her Ohio license is in good standing. - Answer- She must show her
Ohio license is in good standing
The requirement that an insurable interest must exist when life insurance is purchased
is intended to prevent people from doing which of the following?
using life insurance to fund future cash needs
using life insurance as a speculative investment on another person's
life
overusing life insurance
designating an ineligible person as the policy beneficiary - Answer- using life insurance
as a speculative interest on another person's life
Which one of the following best describes a policy that has a relatively low face amount
and has premiums that are paid to an insurance agent who generally calls on the
policyowner at home to collect them?
group life insurance
industrial life insurance
ordinary term insurance
ordinary whole life insurance - Answer- industrial life insurance
Sylvia's insurer guarantees a fixed death benefit for the policy she owns. Based on this,
which one of the following benefits is also most likely guaranteed with this policy?
the policy's cash value
her ability to borrow an interest-free loan from the cash value
policy dividends
payment of premiums on Sylvia's behalf in the event of emergencies - Answer- the
policy's cash value
Carl is a policyowner who prefers to pay premiums monthly rather than annually. How
will Carl's insurance company adjust his premium to accommodate this request?
The insurer divides the annual premium by 12 and then adds a modest charge.
The insurer simply divides the annual premium by 12.
The insurer divides the annual premium by 12 and then reduces the premium amount
to reflect the fact that premiums will be paid throughout the year.
The insurer divides the annual premium by 12 and then adds a modest charge in the
first policy year after which premiums equal the annual premium divided by 12. -
Answer- The insurer divides the annual premium by 12 and then adds a modest charge
All of the following statements about key person life insurance are correct, EXCEPT:
The business applies for, owns, and is the beneficiary of the policy covering the life of a
key employee.
Upon the insured employee's death, the employee's surviving family receives the
policy's death benefit.
Key person, or key employee, life insurance is an example of third-party ownership.
Life insurance used as key person life is normally owned by the business rather than
the insured. - Answer- XXX Upon the insured employee's death, the employee's
surviving family receives the policy benefit XXX
The activities a producer performs to support the insurance company in learning all it
can about the applicant when seeking applications for insurance are generally called:
field underwriting
fiduciary process
agency development
due diligence - Answer- field underwritin [Show Less]