Webce Test Questions With 100% Correct Answers
Question : which of the following situations presents a
situation of pure risk?-knowing that his family is depending 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
Correct answer: knowing that his family is depending on him,
Frank wants to insure his own life only pure risk is insurable. Pure risk may only result in a loss, unlike speculative risk which may result in a gain.
Question : 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
Question : Jim's policy expired due to nonpayment 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
Correct answer: estoppel
Question : 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 they are agreeing to unreasonable restraint of trade in insurance business, and they are engaging in unfair discrimination
Question : which of the following is NOT a remedy available
to the PA commissioner of insurance for committing an unfair method of competition?-imprisonment -cease and desist order -suspension of license -revocation of license
Correct answer: imprisonment is not a punishment for
committing an unfair method of competition you cannot be arrested for committing an unfair method of competition
Question : which of the following is NOT an unfair claims
settlement practice if 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
Correct answer: failing to promptly settle a claim for which
liability is uncertain is NOT an unfair claims settlement practice