WEBCE TEST QUESTIONS AND VERIFIED
CORRECT ANSWERS 2024 UPDATE
GUARANTEED A+
a group health policy in PA can exclude coverage for preexisting conditions for no
longer than - CORRECT ANSWER: 12 months after the enrollment date
a provision found in some deferred annuities, which allows surrender charge-free withdrawals if the interest rate credited to the accumulated value drops below a
specified level, is called:
-surrender provision -bailout provision -release provision -non-forfeiture provision - CORRECT ANSWER: this is called the bailout provision
a type of life insurance that covers two people and only pays the death benefit upon the
second insured's death is called:
-survivorship life -family life -spousal life
-joint life - CORRECT ANSWER: survivorship life
a variable annuity contract owner can annuitize the account's cash value under which of the following payout options?
fixed payout option only variable payout option only fixed or variable payout option
fixed and variable payout option simultaneously - CORRECT ANSWER: they can
annuitize under a fixed or variable payout option
Acme Insurance and Apogee insurance agree to offer different premium rates for persons of equal risk within a particular 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 - CORRECT ANSWER: they are engaging in unfair and prohibited
business practices
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they are agreeing to unreasonable restraint of trade in insurance business, and they are engaging in unfair discrimination
adam is an independent agent and solicits policies for several different insurers. what kind of relationship does he have with each insurer?
-consultant -dependent -foduciary -presumptive - CORRECT ANSWER: he has a fiduciary relationship with each insurer
after Bob and Ellen's first child is born, the couple wants to add the baby to their policy, while increasing Ellen's coverage. they would probably buy which of the following?
-spouse/other insured term rider -children's term rider -family term rider -living benefits rider - CORRECT ANSWER: they would buy a family term rider because this rider covers multiple family members equally.
Agent Jill received a letter from the Department of insurance asking her to submit verification of having completed 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?
- CORRECT ANSWER: a fine up to $100 per day per violation
A producer has 30 days to respond to a written inquiry from the Department
agent monroe helped her client brian enter into a viatical settlement agreement with best insurers. which of the following parties will get the life insurance proceeds upon brians death?
-brian's beneficiaries under his will -agent monroe -agent monroe and best insurers
-best insurers - CORRECT ANSWER: Best Insurers will get the proceeds
alex sold an insurance policy before his license lapsed and earned a commission on the sale. is he entitled to a commission if the policy is renewed? - CORRECT ANSWER: yes, because he was licensed when the policy was sold
all of the following statements regarding tax benefits of qualified retirement plans are
correct EXCEPT:
Employers can take an income tax deduction, within limits, for contributions they make to the plan. 2 / 3
Employees are not currently taxed on contributions to the plan made on their behalf by the employer.Benefits are taxed to employees only when they are withdrawn or distributed.Upon distribution, employees are required to pay taxes only on the interest earned on plan contributions but not on the contribution amount itself. - CORRECT ANSWER: it is not true that upon distribution, employees are required to pay taxes only on the interest earned on plan contributions but not on plan contributions themselves
benefits are taxed to employees only when distributed or withdrawn
all the following statements on children's term riders on life insurance policies are correct, EXCEPT
A children's term insurance rider provides a modest amount of coverage Children's term riders often are issued for a specified amount A children's term rider can be issued for a specified percentage of the primary insured parent's base policy The modest amount of coverage in a children's term rider reflects the small amount parents are willing to pay for children's insurance. - CORRECT ANSWER: IT IS NOT TRUE that a modest amount of coverage in a children's term rider reflects the amount of parents willing to pay for children's life insurance
all the following statements regarding life insurance term riders are correct EXCEPT:
-if the insured is alive at the end of the term, then the coverage ends without value -term life insurance riders has no cash value or any other living benefits associated with them -a term rider provides additional coverage for as long as the insured maintains the base whole life policy -like term life insurance policies, term riders continue only for a specified amount of time
- CORRECT ANSWER: it is not true that a term rider provides additional coverage for
as long as the insured maintains the base whole life policy.
alpha co pays the premiums for its group medical, dental, disability, and LTC insurance plans. which statement is correct about the income tax consequences?
-The premiums for all of the policies are taxable income to the employees.-The premiums are deductible income to the employees -alpha can take income tax deductions for all the premiums it pays on its policies -Alpha can take an income tax deduction only for the premiums it pays for its medical
plans. - CORRECT ANSWER: alpha can take an income tax deduction for all of the
premiums it pays on its policies
an agent who sells insurance for an insurance company that does not have a certificate of authority to operate in that state represents - CORRECT ANSWER: a non-admitted insurer
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