Pennsylvania Life Insurance - PA Laws/Rules

A licensee whose name or address changes must notify the Commissioner within 10 days 15 days 30 days 45 days

30 Days

A life insurance policy becomes incontestable after it has been in force for 30 days 6 months 2 years 3 years

2 Years

After passing the insurance examination, the insurance license application must be submitted to the Pennsylvania Insurance Department within 3 months 6 months 1 year 2 years

1 year

The free look period provided in a life insurance policy is usually 10 days 31 days 45 days 60 days

10 Days

An individual appointed by an insurance company that represents the company and presents policies on it's behalf is An adjuster A producer An auditor An underwriter

A producer

Misrepresenting pertinent policy provisions relating to coverage after a loss is A concealment in insurance application An unfair claims settlement practice An unfair discrimination between individuals A violation of the principle of adhesion

An unfair claims settlement practice

To receive an insurance license an applicant must Apply for the license after passing the appropriate examination Provide three character references Execute an affidavit as to the applicant's integrity Post a $25,000 bond to guarantee faithful performance

Apply for the license after passing the appropriate examination

An insurance company writing business in a state other than the one in which it is domiciled is called A foreign A domestic An Alien A Illegal

Foreign

Viatical settlement brokers are permitted to do all of the following EXCEPT Charge a fee for their services Advertise the availability of viatical settlements Introduce viators to settlement providers Make the first transaction up to 30 days before approved for a license

Make the first transaction up to 30 days before approved for a license

An insurable interest in each other's lives may exist in absence of an economic interest when the individuals are Competitors Business associates Marriage partners Traveling companions

Marriage Partners

False advertising of an insurance policy is considered Defamation Misrepresentation Coercion Boycott

Misrepresentation

A producer's authority to bind an insurer to an insurance contract may be granted in the: Producer's appointment with the insurance company Countersignature authorization agreement Producer's license Legislative code

Producer's appointment with the insurance company

A cease and desist order issued against a producer Suspends the producer's certificate or broker's license Prevents the producer from receiving commissions Prohibits a specific practice listed in the order Terminates the producer's appointment with the insurer

Prohibits a specific practice listed in the order

The Commissioner may suspend a producer's license when the producer Fails to notify the insurance department of change of premium trust account location Rebates a portion of the commission to the insured Shares commissions with similarly licensed producers Fails to report annual commission earnings to the insurance department

Rebates a portion of the commission to the insured

A life insurance producer licensed in the Commonwealth of Pennsylvania is authorized to Approve the payments of a claim Reinstate an insurance contract after the expiration date Solicit, receive and forward applications to the insurer Replace a policy without notifying the insurer

Solicit, receive and forward applications to the insurer

Under the Fair Credit Reporting Act, which statement is true? The consumer who was investigated must be advised that credit, insurance, or employment was denied because of an unfavorable report. Disclosure of the name of the reporting agency is prohibited. The consumer must initiate legal action to remove unfavorable information from the report. A reporting agency must furnish an investigative report to any person who requests the information.

The consumer who was investigated must be advised that credit, insurance, or employment was denied because of an unfavorable report.

Who reports a producer's termination of appointment to the Commisioner? The producer The insurer The Insurance Department The State

The insurer

A life insurance illustration showing future premiums being paid out of nonguaranteed values must disclose that These policy premiums will vanish The policy guarantees payment of these premiums The policyowner forfeits the option of paying these premiums from other sources The policyowner may need to resume premium payments depending on actual results

The policyowner may need to resume premium payments depending on actual results

An insurer operating in the U.S. but headquartered outside the U.S. is a foreign insurer an alien insurer unauthorized authorized

an alien insurer

When the Commissioner believes a producer has broken an insurance law, the Commissioner has the authority to: increase the producer's continuing education requirements terminate the producer's appointment cancel the producer's fiduciary responsibility issue a cease and desist order against the producer at a hearing

ssue a cease and desist order against the producer at a hearing

Which statement is true regarding Pennsylvania's continuing education requirements for licensed producers? There are no continuing education requirements in Pennsylvania A producer must complete one accredited college course each year A producer must meet specified course requirements within a two-year period A producer who has a four-year degree in insurance is exempt from continuing education requirements

A producer must meet specified course requirements within a two-year period

A producer must secure an appointment with an insurer Before taking a licensing examination Within 90 days of receiving a license Before soliciting insurance applications for that insurer Within 90 days of soliciting insurance applications for that insurer

Before soliciting insurance applications for that insurer

A producer who makes an agreement that unreasonably restrains the business of insurance may have violated regulations against Boycott, coercion and intimidation Defamation False advertising Unfair discrimination

Boycott, coercion and intimidation

For policyholders in the same risk classification, it is unlawful to Charge different premiums Set different policy effective dates Issue different amounts of coverage Establish uniform claims payment procedures

Charge different premiums

A producer who attempts to intimidate is engaging in coercion twisting defamation discrimination

Coercion.

When the Pennsylvania Commissioner of insurance examines a producer's insurance records, the purpose will primarily be to determine: The producer's sales volume The number of insurers represented Compliance with state insurance laws and regulations Solvency of the producer's personal accounts

Compliance with state insurance laws and regulations

Which event must a producer report to the Commissioner? Conducting business under an assumed name Earning new insurance designations Sharing commissions with another licensed producer Involvement in an automobile accident

Conducting business under an assumed name

Proceeds of the viatical settlement contract could be subject to the claims of Creditors Children Spouse Beneficiary

Creditors

If a producer misleads or fails to adequately disclose the title and true nature of a policy offered to a potential insured, it may be considered Defamation Unfair discrimination Misrepresentation Rebating

Misrepresentation

During the first two years a life insurance policy is in force, the insurer may contest a policy for all of the following reasons EXCEPT Misstatement of age in the application Material misrepresentation in the application Fraud in the purchase of the policy Material concealment in the purchase of a policy

Misstatement of age in the application

Twisting means Persuading an insured, to the insured's detriment, to switch policies Encouraging a policyholder to replace a surrendered policy Encouraging an applicant to purchase insurance by offering a discount. Making false statements on an application for insurance

Persuading an insured, to the insured's detriment, to switch policies

Agreements made by terminally ill persons to sell their life insurance policies at a discount in order to pay medical expenses are called Repurchase agreements Viatical settlements Nonforfeitures Living wills

Viatical settlements

In which situation could the producer of an insurer be personally liable? When the producer acts with an insurer's oral but unwritten authority When the producer performs an act which is prohibited in the agency contract When the producer uses misleading sales material provided by the insurer Never, under any circumstances

When the producer performs an act which is prohibited in the agency contract

A producer's license may be renewed without Satisfying continuing education requirements Submission of a completed renewal form Payment of the proper fee Appointment by a sponsoring entity

Appointment by a sponsoring entity

Any of the following may be an unfair claims practice EXCEPT Refusing to pay claims without a reasonable investigation Refusing to pay persons bringing false or fraudulent claims Failing to promptly provide reasonable explanation of any claim denials Offering low amounts to force insureds to institute litigation

Refusing to pay persons bringing false or fraudulent claims

A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered is called Nonforfeiture Replacement Reinvestment Rollover

Replacement

Which of the following statements about the contestability of a life insurance policy is true? The policy cannot be contested by the insurer once it is paid for and issued The policy can be contested by the insurer only during the first two years of the contract The policy can never be contested by the insurer The policy can always be contested by the insurer

The policy can be contested by the insurer only during the first two years of the contract

No existing producer's license will be revoked until The producer has been afforded a right to a hearing on the charges At least three violations have been incurred A cease and desist order has been issued A jury has decided upon such action

The producer has been afforded a right to a hearing on the charges

Misrepresenting a policy for the purpose of inducing a policyholder to change or replace an existing policy is known as Binding Rebating Soliciting Twisting

Twisting

A producer's license in Pennsylvania must be renewed every: Year Two years Three years Four years

Two years.

The producer originating an insurance application Usually has underwriting authority May alter the application Usually is the major personal contact with the insured Can alter the terms of the agreement through verbal statements to the applicant

Usually is the major personal contact with the insured