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