PA LIFE INSURANCE EXAM

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PA LIFE INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -65 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: All of these are considered a form of advertising

Answer:

• insurer's billboard
• formal sales presentation
• insurer's direct mailing to a target audience

Question 2: A life insurance policy becomes incontestable after it has been in force for..

Answer:

• years

Question 3: A life insurance producer licensed in PA is authorized to..

Answer:

solicit, receive, & forward applications to the insurer Question 4: Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase an extended term insurance option. When the term insurance expires..

Answer:

the protection ends

Question 5: Maria would like an annuity that provides a guaranteed accumulation or payout. The type of annuity she is seeking is called..

Answer:

annuity certain Question 6: The automatic premium loan provision authorizes an insurer to withdraw from a policys cash value the amount of

Answer:

past due premiums that have not been paid by the end of the grace period Question 7: Under a group life insurance policy, the insurer will issue an induvidual ...... to the policyowner for delivery to each person insured..

Answer:

certificate

Question 8: In what part of the policy are the policy benefits found

Answer:

conditions

Question 9: An example of risk sharing would be..

Answer:

Doctors pooling their money to cover malpractice exposures is an example of risk sharing Question 10: When a producer offers something of value in return for the purchase of an insurance policy, which prohibited sales practice has been committed..

Answer:

inducement Question 11: Which type of annuity stops all payments upon the death of the annuitant..

Answer:

life annuity Question 12: Signatures for an insurance application MUST be obtained by the producer from all of the following sources except..

Answer:

Beneficiary

Question 13: When soliciting insurance, a producer CANNOT..

Answer:

emphasize guaranty association benefits Question 14: Which of these is a method of determining the level of funds required for ongoing support in the event of the breadwinner's death..

Answer:

human life value

Question 15: Risk factors of life insurance underwriting..

Answer:

• health history
• hobbies
• occupation

Question 16: Ken is a producer who has consumer info reports under false pretenses under the fair credit reporting act, what is the max penalty..

Answer:

$5000 & 1 year in jail Question 17: Which annuity payout option allows the policyowner to choose a predetermined number of benefit payments..

Answer:

period certain Question 18: What is the purpose for having an accelerated death benefit on a life insurance policy..

Answer:

It allows for cash advances to be paid against the death if the insured becomes terminally ill Question 19: What policy feature makes a universal life policy different than a whole life policy..

Answer:

a flexible premium special

Question 20: Simon has purchased fixed immediate annuity. His payment amount will be dependent upon principal, interest, and the contracts..

Answer:

income period Question 21: All of the following are considered appropriate uses of life insurance..

Answer:

• attracting quality employees by offering a group life plan
• protecting the business by covering key employees with life insurance
• funding an entity buy sell agreement

Question 22: Andy annuitant dies before the annuity start date..

Answer:

premiums paid plus interest earned is returned to the beneficiary

Question 23: A producer's license CANNOT be revoked without

Answer:

a hearing given to the producer Question 24: Which protects a PA policy owner from a mistake made on an application 2 years ago?

Answer:

incontestability provision Question 25: Mike has inherited his father's traditional IRA. As a beneficiary, he will pay taxes on any money withdrawn

Answer:

income

Question 26: A renewable term life insurance policy can be renewed

Answer:

anytime the policy owners request