WEBCE TESTS COMPILATION BUNDLE

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 t...

An insured would be prudent to rely upon health insurance to cover injuries sustained in an auto accident because medical payments coverage under a personal auto policy. (PAP CORRECT ANSWERS: has relatively low limits If a group of insureds are rated by class, they will CORRECT ANSWERS: be char...

Homeowners Policy Coverage A CORRECT ANSWERS: Dwelling: Insureds house and attached structures, attached garage and/or toolshed/construction materials on or next to dwelling. Homeowners Policy Coverage B CORRECT ANSWERS: Other structures: Structures not attached to dwelling, detached garage, ga...

What is difference between a Stated Amount and an Agreed Value? CORRECT ANSWERS: Methods lies in the benefit amount that is actually paid out if the insured object is destroyed or stolen. Stated - pays the lesser of the listed dollar amount or the objects cash or replacement value. Agreed - Pays th...

Rory's parents offered to buy him a new car to take to college, but Rory turned them down because he was afraid the car would be stolen or damaged if he parked it on campus. In deciding not to own a car, what risk management technique did Rory employ? CORRECT ANSWERS: risk avoidance Which of th...

A tornado severely damages one of Major Manufacturing's plants. As a result of the damage, Major Manufacturing is forced to curtail its operations during the 6 months needed to complete repairs. The resulting loss of income suffered by Major Manufacturing is referred to as CORRECT ANSWERS: a time ...

1. The ethical principle, "Place the interests of others above your own," is an example of CORRECT ANSWERS: b. positive actions or results-based ethics 2. Your sister escaped from an abusive husband and is hiding in your basement when her husband knocks on your door, brandishes a pistol, and a...

Homeowners Coverage Forms: HO-1 Homeowners Coverage Forms: HO - 2 CORRECT ANSWERS: Broad Form. Dwelling, other structures, personal property on named perils basis. Loss of use, personal liability, medical payments. Homeowners insurance policy that provides insurance coverage on the "named-peril...

What is the form of LTC that is non-medical and involving the most private and intimate aspects of a person's life - personal hygiene, dressing, and toileting? CORRECT ANSWERS: Custodial Care Custodial Care provides these "low-tech" services that are designed to minimize, rehabilitate, or com...

What is the underwriter's goal? CORRECT ANSWERS: To write a book of business in which the actual losses approximate the expected losses. Gertrude is going to become an insurance agent. She would like to work in an agency that represents many different insurance companies. Gertrude will go to wo...

Which of the following is characteristic of Virginia's Long-Term Care Insurance Partnership program? CORRECT ANSWERS: both I and II John's long-term care insurance partnership policy lapsed for nonpayment of premiums while he was confined in a nursing home. His coverage for that nursing home c...

In general, what is the earliest age at which a person can take a distribution from a qualified plan without a tax penalty? CORRECT ANSWERS: 59 1/2 Carol was 35 when she bought her deferred annuity. Now, at age 38, she wants to withdraw funds from the contract to take a vacation. Carol is likely...

Buying life or health insurance is an example of which risk management technique? risk avoidance risk reduction risk retention risk transfer CORRECT ANSWERS: risk transfer What is the mathematical concept of probability that helps insurers estimate the statistical likelihood of mortality o...

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 licens...