PA LIFE, ACCIDENT AND HEALTH EXAM PREP

PDF Download

PA LIFE, ACCIDENT AND HEALTH EXAM PREP

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -53 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: What best describes a policy that has a relatively low face amount and has premiums that are paid to an insurance agent who generally calls on the policyowner at home to collect them?

Answer:

Industrial life insurance Question 2: Jeff is a licensed insurance producer in both New York and Pennsylvania. He is charged with embezzlement in New York, and his first pretrial hearing is set for March

• He must notify the Pennsylvania Commissioner of Insurance of this charge within how many

days of the hearing?

Answer:

30 days Question 3: All of the following part of a producer's responsibilities to an applicant EXCEPT:

• recommend insurance products that are suitable for the customer's needs
• disclose all important information about a proposed policy
• research other insurance companies' insurance products if requested by the applicant
• avoiding replacing an insurance policy unless doing so will clearly benefit the applicant

Answer:

• Research other insurance companies' insurance products if requested by the applicant

Question 4: When comparing her insurance company's policies to those of Zenith Insurance, Melanie makes a misleading statement to convince an insurance prospect to terminate a policy with Zenith and buy one from Melanie's company. What practice has Melanie engaged in?

Answer:

Twisting Question 5: v Steven is filling out an application for life insurance. The application asked whether he had ever had heart problems. Steven intentionally skips this question even though he had heart surgery three years ago because he is afraid his application will be denied. What is the term for Steven's failure to give his entire medical history?

Answer:

Concealment Question 6: Sylvia's insurer guarantees a fixed death benefit for the policy she owns. Based on this, which one of the following benefits is also most likely guaranteed with this policy?

• payment of premiums on Sylvia's behalf in the event of emergencies
• the policy's cash value
• her ability to borrow an interest-free loan from the cash value
• policy dividends

Answer:

The policy's cash value Question 7: Agent Randy learns that his client Brenda will be replacing her existing individual health insurance policy. Which document must he give Brenda at the time of application?

Answer:

Notice Regarding Replacement Question 8: Which of the following statements regarding life insurance policy cost comparison methods is correct?

• There are two types, the traditional net cost method and the interest-adjusted net cost

method, and both types are used equally.

• There are two types, the traditional net cost method and the interest-adjusted net cost

method, and the traditional net cost method is most commonly used today.

• There are two types, the traditional net cost method and the interest-adjusted net cost

method, and the interest-adjusted net cost method is most commonly used today.

• There are two types, the traditional net cost method and the interest-adjusted net cost

method, and most states forbid either type from being used.

Answer:

There are two types, the traditional net cost method and the interest-adjusted net cost method, and the interest- adjusted net cost method is most commonly used today Question 9: With respect to third-party ownership of life insurance in the personal insurance

market, all the following statements are true EXCEPT:

• The insured has the right to name the beneficiary.
• Third-party ownership is common in estate planning.
• Third-party ownership is the basis of stranger-oriented life insurance (STOLI).
• Policy ownership can be transferred to anyone without there having to be an insurable

interest between that person and the insured.

Answer:

The insured has the right to name the beneficiary Question 10: All the following statements regarding life insurance level premiums are correct

EXCEPT:

• The policyowner pays the same premium amount each time it is due for as long as the policy

is in force.

• The owner of a whole life policy may elect to let the insurer raise premiums over time,

resulting in a lower initial premium than would be the case with a level premium policy.

• For most types of permanent life insurance policy, premiums remain level regardless of the

mode of premium selected.

• The premium amount does not change even though the risk to the insurer increases over

time.

Answer:

The owner of a whole life policy may elect to let the insurer raise premiums over time, resulting in a lower initial premium than would be the case with a level premium policy

Question 11: All of the following statements about participating policies are correct EXCEPT:

• They are generally issued only by mutual insurance companies.
• Participating life policies pay the policyowner a policy dividend out of its divisible surplus.
• Though not required to do so, insurers may guarantee their participating policy dividends.
• They may also be called par policies.

Answer:

Though not required to do so, insurers may guarantee their participating policy dividends Question 12: Which of the following statements about agent/producer responsibilities is correct?

• To policyowners, the agent who sold them their insurance coverage is clearly separate from,

and does not represent, the insurer.

• As long as the applicant understands the life insurance product being recommended, it is not

necessary for the agent to be concerned with the product's suitability for the applicant.

• Agents must always act ethically and professionally in all dealings with policyowners and

future policyowners.

• How the agent conducts business has no bearing on the insurance company and directly

impacts the agent's ultimate success.

Answer:

Agents must always act ethically and professionally in all dealings with policyowners and future policyowners Question 13: Agent Jill received a letter from the Department of Insurance asking her to submit verification of having completed the continuing education requirements for the previous licensing period. Three weeks later, the Department sent another letter. Which penalty may the Department impose if Jill still has not responded to its request one month later?

Answer:

A fine of up to $100 per day per violation