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WEBCE EXAM 2025/REAL 115 EXAM Qs&As|LATEST
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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? - ANS>> a fine up to $100 per day per violation A producer has 30 days to respond to a written inquiry from the Department 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 - ANS >> estoppel BBC insurers filed premium rates for its new line of variable products on January
- Within how many days must the commissioner approve or disapprove the
rates? - ANS >> 30 days all rate filings are subject to a 30 - day waiting period before they become effective. 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? - ANS>> 5 years 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 - ANS >> 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 which of the following is NOT a remedy available to the PA commissioner of insurance for committing an unfair method of competition?
ANS>> Jeff has 30 days to notify the PA commissioner of insurance of the disciplinary action being taken against him 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
- offering to settle claims for less than due to encourage litigation
- raising policy defenses to reduce a claim - ANS >> failing to promptly settle a claim for which liability is uncertain is not an unfair claims settlement practice 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? - ANS>> Stacy has express authority due to the contract between her and the insurance company specifically allowing her act in such a way 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?
- twisting
- churning
- rebating
- false information - ANS >> rebating its illegal to offer gifts in exchange for the purchase of an insurance policy which of the following is not a power granted to the PA commissioner of insurance?
- licensing producers and companies
- enforcing insurance laws
- issuing regulations to administer insurance laws
- prosecuting individuals for violating insurance laws - ANS>> the PA commissioner of insurance CANNOT prosecute individuals for violating insurance laws which is not necessary to create a legal contract?
- consideration
- offer
- warranty
age
- the total amount of money a person earned during their lifetime
- the amount payable to the surviving spouse after the worker's death
- the amount of retirement and disability benefit payable to the worker and their spouse - ANS>> a worker's primary insurance amount is the amount of retirement benefit the worker will receive at their full retirement age 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 - ANS>> survivorship life tom bought a $100,000 adjustable life insurance policy. with respect to that policy, all the following statements are correct EXCEPT:
- tom can increase the death benefits under his policy if he can prove insurability
- if tom wants to change the premium, both he and the insurer must agree to the change
- if tom wants to increase the amount of the death benefit by more than $50,000, he will have to buy a new policy
- if tom increases the death benefit but does not increase the premium, the cash value growth slows or stops - ANS>> it is not true that tom will have to buy a new policy if he wants to increase the death benefit by more than $50, if a policyowner partially surrenders an adjustable life policy, which of the following happens?
- the premium stays level
- the premium goes up proportionately
- the premium goes down
- the premium goes down by the amount of the withdrawal - ANS>> when a policyowner partially surrenders an adjustable life policy, the premium goes down. It proportionately reduces the policy's death benefit and future premium sandy and cindy are healthy, 45 years old, and have similar life expectancies. though they are insured by the same company, sandy's life insurance premiums are considerably lower than cindy's. what may this indicate a case of?
- misrepresentation
- unfair discrimination
- twisting
- false advertising - ANS>> unfair discrimination
- surrender provision
- bailout provision
- release provision
- non-forfeiture provision - ANS>> this is called the bailout provision which of the following statements regarding third-party ownership is correct?
- the insured has no rights in the policy
- the insured can access the policy's cash value but cannot designate beneficiaries
- the insured can designate a beneficiary and access the cash value, but cannot assign the policy to another third-party owner - ANS>> it is correct that the insured has no rights in the policy 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 - ANS>> it is not true that a term rider provides additional coverage for
as long as the insured maintains the base whole life policy. james bought a life insurance policy 18 months ago. If he commits suicide today, what, if anything, would the insurer be obligated to pay the beneficiary?
- the full death benefit
- the death benefit minus premiums paid
- refund of the premiums paid
- nothing - ANS>> If you commit suicide within 2 years after purchasing a life insurance policy, the insurer is obligated to only refund the premiums paid to your beneficiary. in some states, employers can buy group life insurance for their employees through a multiple employer trust (MET). All the following statements about METs are correct EXCEPT:
- each individual employer is issued a separate policy
- a MET must have at least 2 employers and 100 employees
- for contributory plans, 75% of the group must enroll
- for noncontributory plans, 100% of the group must enroll - ANS>> it is not true that each individual employer is issued a separate policy which of the following statements is true with all types of life insurance?
terminal illness or injury
- can be used for any purpose as long as the expense is medical- related
- must be used for long-term care expenses
- can be used for any purpose - ANS>> accelerated benefit funds can be used for any purpose, though they are meant for medical and living expenses 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 - ANS>> they would buy a family term rider because this rider covers multiple family members equally. the guaranteed miniumum interest rate in an indexed deferred annuity is typically:
- 1 to 3%
- 4 to 5%
- 6 to 10%
- depends on the participation rate and cap - ANS>> typically 1 - 3% is guaranteed
what type of life insurance policy distributes its surplus after the company accounts for reserves, liabilities, capital, and expenses?
- participating policy
- non participating policy
- industrial insurance policy
- commercial insurance - ANS>> a participating policy because this policy participates in the divisible surplus of the insurer which statement about increasing term insurance is correct?
- premiums are generally lower than level term or decreasing term insurance
- it is normally sold as a rider on a permanent life policy
- the premium increases during the policy term as the death benefit increases
- the cash value increases during the term - ANS>> term insurance is normally sold as a rider on a permanent life policy with respect to roth IRA conversions, all the following statements are correct EXCEPT:
- income taxes must be paid on the tradiaitonal IRA when the account is converted
daughter's college tuition. Which statement is true?
- they can take a tax deductible for the contribution
- chester does not have to pay tax on the distribution
- chester must pay tax on the earnings portion of the withdrawal
- chester can take an income tax deduction for their withdrawal - ANS>> chester does not have to pay tax on the distribution because the interest earned and the funds are not taxable what is the maximum amount of time most states allow insurers to delay paying cash surrender values when a life insurance policy is canceled?
- 1 month
- 1 year - ANS>> they can delay for up to 6 months What does a viatical settlement allow?
- allows a chronically/terminally ill person to leave money to their heirs
- allows an insured to sell a life insurance policy when they no longer need coverage
- allows a chronically/terminally ill insured to gain a sum of money that is needed to pay medical expenses or enhance the quality of life
- 6 months
- 9 months
- allows the insured to assign the policy to a third party, who will use the proceeds to pay the insured - ANS>> it allows a chronically or terminally ill insured to gain a sum of money that is needed to pay medical expenses or enhance the quality of life if an individual employer offers group life insurance on a non- contributory basis, how much of the group must be covered? - ANS>> the plan must cover 100% of employees individual life insurance policies must include a grace period of how many days for paying any premium except the first? - ANS>> 30 day grace period when does the free-look period for a variable life insurance policy end? - ANS>> 10 days after the policy is delivered, or 45 days after the insurance application is completed, whichever is later which one of the following is included in the employee's taxable income?
- the value of any group life insurance exceeding $20,000, less any premiums the employee pays
- the value of any group life insurance exceeding $30,000, less any premiums the employee pays
health underwriters FINRA only regulates agents selling variable life products 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? - ANS>> yes, because he was licensed when the policy was sold
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 - ANS>> he has a fiduciary relationship with each insurer an insurer must notify its current customers of its privacy policy and practices at least once every how often?
- 6 months
- 24 months - ANS>> every 12 months as a general rule, life insurance policy loans become available after a policy has been in force for:
- 6 months
- 1 year
- 3 years
- 5 years - ANS>> policy loans normally become available after the policy has
- 36 months
- 12 months
