Webce Insurance test questions and answers with complete Solution
Question: Which of the following situations presents a
situation of pure risk?
Correct answer: Knowing that his family is depending on
him, Frank wants to insure his life.
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.
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?
Correct answer: Estoppel.
Question: BBC Insurers filed premium rates for its new line
of variable products on January 15. Within how many days must the commissioner approve or disapprove the rates?
Correct answer: 30 days.
Question: The Commissioner of Insurance can examine the
business accounts, transactions, and records of insurers and producers as often as necessary, but must do so at least once in how many years?
Correct answer: 5 years.
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?
Correct answer: Unfair and prohibited business practices.
Question: Which of the following is NOT a remedy available
to the PA Commissioner of Insurance for committing an unfair method of competition?
Correct answer: Imprisonment.
Question: Which of the following is NOT an unfair claims
settlement practice if committed by an insurance company in PA?
Correct answer: Failing to promptly settle a claim for which
liability is uncertain.
Question: Jeff is a licensed insurance producer in both PA and
NY. He is charged with embezzlement in NY, and his first pretrial hearing is set for March 1. He must notify the PA Commissioner of Insurance within how many days of this hearing?
Correct answer: 30 days.
Question: Which of the following is NOT an unfair claims
settlement practice if committed by an insurance company in PA?
Correct answer: Failing to promptly settle a claim for which
liability is uncertain.
Question: Stacy is a captive agent for Best Rates Insurance
Company. Her agency contract gives her permission to print and use business cards with the company's logo and submit applications for its policy. What type of authority does Stacy have to take these actions?
Correct answer: Express authority.
Question: To boost her sales at the end of the year, Agent
Trudy started offering potential clients a $250 cash gift card in exchange for purchasing a life insurance policy. Which ethical sales practice has she violated?
Correct answer: Rebating.
Question: Which of the following is NOT a power granted to
the PA Commissioner of Insurance?
Correct answer: Prosecuting individuals for violating
insurance laws.