WEBCE INSURANCE EXAM WITH 50 QUESTIONS

WEBCE INSURANCE EXAM WITH 50+ QUESTIONS &

CORRECT ANSWERS GRADED A

• Which of the following exempted insurance companies from federal antitrust

legislation? - ANSWER-the McCarran-Ferguson Act

• Which of the following has primary responsibility for regulating the insurance

industry?

• the states - ANSWER-

Which statement about the NAIC is correct? - ANSWER-The NAIC prepares model laws, regulations, and guidelines for adoption by the states.

• The NAIC issued a model law on long-term care insurance. Which statement

about the model law's effectiveness is correct? - ANSWER-The model law becomes effective in a state if approved by the state legislature.

Which statement about life insurance illustrations is correct? - ANSWER- Illustrations must include the company's name, the date the illustration was prepared, initial death benefit, and the name, age, and gender of the proposed insured.

• Which of the following provides general information about life insurance

policies to potential buyers? - ANSWER-the Buyer's Guide

• Which of the following is the Gramm-Leach-Bliley Act primarily aimed at

regulating? - ANSWER-the disclosure of personal financial information to third parties 1 / 2

• What is the purpose of the Producer Database? - ANSWER-streamline producer

licensing procedures

• For how long must an organization maintain a record of a person's request to be

placed on a do-not-call list? - ANSWER-5 years

• Which of the following must be considered in making a suitable fixed annuity

recommendation to a customer? - ANSWER-a. the customer's financial status

• the customer's tax status
• the customer's investment objectives
• all of the above

Which of the following is not a prohibited practice? - ANSWER-giving a gift of nominal value to an insurance applicant

Which of the following terms refers to 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? - ANSWER-twisting

When meeting with a prospect to discuss disability income insurance, Agent 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? - ANSWER-defamation

What type of authority exists when a reasonable consumer would infer from the circumstances that the agent has authority to act on behalf of the principal? - ANSWER-implied authority

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