FINAL EXAM PA LIFE, HEALTH AND ACCIDENT

PDF Download

FINAL EXAM PA LIFE, HEALTH AND ACCIDENT

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: If the insurance department determines that the issuance of a temporary producer license serves in the publics best interest, the license may be issued to

Answer:

an executor of a deceased producer's estate

Question 2: All of the following are functions of an insuring clause EXCEPT

Answer:

Primarily describes the free-look period

Question 3: Claim Forms

Answer:

• It is the company's responsibility to supply a claim form to an insured within 15 days after receiving

notice of claim

• If the insurance company fails to send out the claim forms within the time period required by the

provision, the insured should submit the claim in any form, which must be accepted by the company as adequate proof of loss Question 4: Which of these describes the result of a modified endowment contract that failed to meet the seven pay test?

Answer:

Pre Death distributions are typically taxable

Question 5: Owner's Rights Provision

Answer:

Defines the person who may name and change beneficiaries, select options available under the policy, and receive any financial benefits from the policy.Question 6: Maria is a Preferred Provider Organization (PPO) subscriber and received care from an out-of-network provider. Which of the following is the likely result?

Answer:

Care is covered

Question 7: Insuring Clause

Answer:

The insurer's basic promise to pay specified benefits to a designated person in the event of a covered loss. The purpose is to specify the scope and limits of the coverage provided.Question 8: Loans obtained by a policy-owner against the cash value of a life insurance policy

Answer:

Would not be treatable as taxable income

Question 9: What is the nonforfeiture value of an annuity before annuitization?

Answer:

All premiums paid, plus interest, minus any withdrawals and surrender charges Question 10: An employee under a group insurance policy has the right to name a beneficiary

Answer:

Convert to an individual policy in the event of employment termination Question 11: Which of these annuities require premium payments that vary from year to year?

Answer:

Flexible Premium Deferred Annuity

Question 12: Premium mode is a term used to describe the?

Answer:

Frequency of the premium payment

Question 13: Karissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000 which of these statements is true?

Answer:

The face amount and premium will remain constant over the 10-year period Question 14: In an accident and heath plans, premiums paid less frequent than monthly require a minimum grace period of at least

Answer:

31 days Question 15: The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as

Answer:

Aleatory Question 16: Which type of plan would be most appropriate for an individual on Medicare and is concerned that Medicare will NOT pay for charges exceeding the approved amount?

Answer:

Medicare Supplement Plan F Question 17: Under a life insurance policy, what does the insuring clause state?

Answer:

The insures obligation to pay a death benefit upon an approved death claim Question 18: Which of these is NOT a characteristic of the Accelerated death benefit option?

Answer:

The benefit can be offered as a rider at a specific extra cost or may be at no cost Question 19: Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits.Which of these benefit options would he choose?

Answer:

Guaranteed lifetime withdrawal benefit

Question 20: Assignment Clause or Provisions

Answer:

The right to transfer policy rights to another person or entity. The new owner is known as the assignee.Question 21: Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true?

Answer:

The policy may be paid up early by using policy dividends Question 22: All of the following are included as a part of a contract in the entire contract provision EXPECT the?

Answer:

Change made by the producer Question 23: Every Pennsylvania insurer, upon receiving notification of a claim, must acknowledge receipt of the notice within

Answer:

10 days

Question 24: Reinstatement Provision

Answer:

Permits the policy owner to reinstate a policy that has lapsed as long as the policy owner can provide of insurability and pays back all the premiums, outstanding loans, and interest. Most states allow reinstatement up to 3 years after the policy has lapsed

Question 25: The waiver of premium does NOT include which provision?

Answer:

All future premiums are waived if the insured recovers from the disability Question 26: A permanent life insurance policy where the policy owner pays premiums for a specified number of years is called an?

Answer:

limited pay policy