WEBCE INSURANCE EXAM WITH 250+ QUESTIONS &
CORRECT ANSWERS GRADED A
Agent Thompson received a letter from the Department of Insurance asking her 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 1 / 4
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? 2 / 4
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
- - 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 3 / 4
agency development due diligence - ANSWER-field underwriting
How is increasing term life insurance normally sold?
as an endorsement as a permanent insurance policy as a stand-alone term life insurance policy as a rider attached to a permanent life insurance policy - ANSWER-as a rider attached to a permanent insurance policy
Andrea bought a $300,000 term-to-age-55 policy. All the following statements
about her policy are correct EXCEPT:
The policy provides $300,000 of coverage until Andrea reaches age 55.The policy will generate a cash value that is payable at age 55.It is possible that Andrea could convert the term policy to a life insurance policy that provides coverage for Andrea's entire life even if she becomes uninsurable.The premium for the policy stays the same until the policy expires. - ANSWER- XXX The policy will generate a cash value that is payable at age 55 XXX
The basic purpose for the re-entry option with a renewable term life insurance
policy is to let the policyowner:
reinstate the policy after it has lapsed for nonpayment of premiums without having to provide evidence of insurability convert the term policy to a permanent life insurance policy
- / 4