Mock exam

Which of these is considered to be a Living Benefit option in a life insurance policy?

Accelerated death benefit

Of the following dividend options, which of these is taxable?

Accumulation at interest

Pennsylvania requires that a licensee complete ____ hours of continuing education on the subject of ethics every reporting period.

1

Tonya has replaced her whole life policy with an annuity without incurring a tax penalty. This transaction is called a(n)

1035 exchange

The commissioner has the right and duty to

Audit insurer financial reports and conduct market studies

An order issued by the commissioner that prohibits a specific practice listed in the order is called a(n)

Cease and desist order

Which of the following would be considered an underwriting duty of an agent?

Completing all applications and collecting initial premiums

International withholding of material facts that would affect an insurance policy's validity is called a(n)

Concealment

A health insurance policy where the insurer has the right to terminate the policy for reasons other than the insured's health is called

Conditionally renewable

What happens to the coverage under a children's term rider when that child reaches a certain specified age?

Coverage is eliminated

Which of the following is not a federal requirement of a qualified plan?

Employee must be able to make unlimited contributions

Which of these riders will pay a death benefit if the insured's spouse dies?

Family term insurance rider

Which do the following of deductibles would apply a single deduction to both medical and dental insurance coverage?

Integrated deductible

Which of these is not considered to be a nonforfeiture option in a whole life insurance policy?

Interest only

Which of the following statements regarding Group Disability Income insurance is TRUE?

It provides benefits for nonoccupational illnesses and injuries

Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them?

Life annuity certain

All of the following are examples of pure risk EXCEPT

Losing money at a casino

What would be an expense factor in an insurance program?

Mortality costs

Chris is an insured bricklayer who severed his left hand in an automobile accident. Although his primary duty cannot be performed, Chris is also a substitute high school teacher. He collects a full disability income check every month. How does his policy define total disability?

Own occupation

The cause of a loss if referred to as a(n)

Peril

During the accumulation period, who can surrender an annuity?

Policyowner

Which of the following is a reinstatement condition?

Proof of insurability

The Commissioner is responsible for all of the following EXCEPT

Recommending insurers

People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. This is called

adverse selection

A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilizing

benefit limits

In Pennsylvania, who is responsible for Continuing Education (CE) course content approval?

commissioner

One role of the commissioner is to

enforce state insurance laws

Insurance premium is determined by each of the following factors EXCEPT

liquidity

The election of COBRA for continuation of health coverage will

maintain the same coverage and increase premium

Mortality is calculated by using a large risk pool of

people and time

The Pennsylvania Insurance Department is responsible for each of the following EXCEPT

shareholders

All of the following actions are considered rebating EXCEPT

sharing commissions with other licensed and appointed procedures