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PA LIFE INSURANCE LICENSE EXAM
Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -95 Questions and Answers
-Format: Multiple-choice / Flashcard
Question 1: Insurance represents the process of risk
Answer:
transference Question 2: Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. What kind of policy is this?Modified Endowment Contract Current assumptive whole life Credit life insurance Equity index whole life
Answer:
Equity index whole life
Question 3: The free-look provision gives the policyowner
Answer:
the right to return the policy for a full refund within a specified number of days
Question 4: which of the following is not part of an insurance contract
Answer:
Certificate Authority
Question 5: What is the automatic continuance of insurance coverage referred to act
Answer:
renewal
Question 6: which is a primary feature of a vatical settlement
Answer:
reduced death benefit prepayment Question 7: Andy the annuitant dies before the annuity start date. Which of the following is a TRUE statement?
Answer:
Premiums paid plus interest earned is returned to the beneficiary
Question 8: which of the following is a reinstatement condition
Answer:
Proof of insurabiilty Question 9: what is required before an insurance producer can act as a representative for an insurer
Answer:
producer needs to be appointed by that insurer
Question 10: an insurance company only pay commissions to
Answer:
unlicensed producer Question 11: Which annuity payout option allows the policyowner to choose a pre-determined number of benefit payments?
Answer:
amount certain Question 12: A policy owner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due
Answer:
Reduction of Premium Dividend Option
Question 13: Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy?$400 $800
$2,000
$4,000
Answer:
$4,000
Question 14: Julie has a $100,000 30-year mortgage on her new home. What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period?
Answer:
Decreasing term insurance
Question 15: when collecting insurance premiums from a client, a producer must
Answer:
forward premiums to the insurer on a timely basis Question 16: an insurance producer is often responsible for field underwriting during the application process. all of these are possible field underwriting roles EXCEPT
Answer:
providing commission information to the applicant Question 17: Erica is 35 years old and owns an IRA. At what age can she begin to receive distributions without a tax penalty?
Answer:
59 1/2
Question 18: under a contract of adhesion,
Answer:
the terms must be accepted or replaced in full
Question 19: An annuitant dies during the distribution period. What kind of annuity will return to a beneficiary the difference between the annuity value and the income payments already made?
Answer:
Refund annuity
Question 20: An insurer's claim settlement practices are regulated by the
Answer:
State insurance departments
Question 21: During the accumulation period, who can surrender an annuity?
Answer:
Policyowner Question 22: A partial surrender is allowed in which of the following life policies?
Answer:
Universal Life
Question 23: a limited payment whole life policy provides
Answer:
lifetime protection
Question 24: which if the following is not considered advertising
Answer:
a rating from a rating service company like A.M Best Question 25: An insurer's ability to make unpredictable payouts to policyowners is called
Answer:
liquidity Question 26: An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of rebating coercion fraud twisting
Answer:
fraud
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