PA Life Insurance Exam
Signatures for an insurance application MUST be obtained by the producer from all of the following sources except..
Beneficiary
When a producer offers something of value in return for the purchase of an insurance policy, which prohibited sales practice has been committed..
inducement
Who is responsible for assembling the policy form for insureds..
insurance carriers
How do insurers predict the increase of individual risks..
law of large numbers
Which type of annuity stops all payments upon the death of the annuitant..
life annuity
Which type of annuity guarantees a stated number of income payments whether or not the annuitant is still alive to receive it
life annuity certain
Which settlement option pays a stated amount to an annuitant, but no residual value to the beneficiary..
life income
The do not call list offers exemption from all except
life insurance
What would a be an expense factor in an insurance program
mortality costs
What is the purpose for having an accelerated death benefit on a life insurance policy..
It allows for cash advances to be paid against the death if the insured becomes terminally ill
The automatic premium loan provision authorizes an insurer to withdraw from a policys cash value the amount of
past due premiums that have not been paid by the end of the grace period
Which annuity payout option allows the policyowner to choose a predetermined number of benefit payments..
period certain
Andy annuitant dies before the annuity start date..
premiums paid plus interest earned is returned to the beneficiary
Decreasing term life insurance is often used to..
provide coverage for a home mortgage
A life insurance company has transferred some of its risk to another insurer, the insurer assuming the risk is called..
reinsurer
Who were Keogh plans designed to provide pension benefits for...
self- employed
A life insurance producer licensed in PA is authorized to..
solicit, receive, & forward applications to the insurer
Which of the following statements about the contestability of a life insurance policy is true..
the policy can be contested by the insurer only during the first 2 years of the contract
Pat owns a 20 pay life policy with a paid dividend option. Which of the following statements is true?
the policy may be paid up early by using policy dividends
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..
the protection ends
Legal purpose is a term used in contract law meaning..
there must be legal reasons to enter the contract
In an insurance contract, the insurer is the only party legally obligated to perform. Because of this an insurance contract is considered..
unilateral
A partial surrender is allowed in which policies..
universal life
Under a traditional IRA, interest is earned & taxed..
upon distribution
Agreements made by terminally ill persons to sell their life insurance policies at a discount in order to pay medical expenses is called..
viatical settlements
3 brothers who have a $100 K first to die joint life policy covering all 3 of their lives. If 1 brother dies first, the policy proceeds..
will no longer provide insurance protection
A renewable term life insurance policy allows the policy owner the right to renew the policy..
without producing proof of insurability
Which premium payment frequencies is not typically available to policyholders..
bi-weekly
Under a group life insurance policy, the insurer will issue an induvidual ...... to the policyowner for delivery to each person insured..
certificate
In what part of the policy are the policy benefits found
conditions
We have issued the policy in consideration of the representations in your apps & payment of the first term premium..
consideration clause
When soliciting insurance, a producer CANNOT..
emphasize guaranty association benefits
Which of the following is an annuity that is linked to a market related index..
equity index annuity
Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What is this called?
estate conservation
Which of these is a method of determining the level of funds required for ongoing support in the event of the breadwinner's death..
human life value
Mike has inherited his father's traditional IRA. As a beneficiary, he will pay taxes on any money withdrawn
income
Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies?
guaranteed insurability
Ken is a producer who has consumer info reports under false pretenses under the fair credit reporting act, what is the max penalty..
$5000 & 1 year in jail
Factors considered in underwriting of life insurance..
- age - tobacco use - health
All of the following are considered appropriate uses of life insurance..
- 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
Viatical settlement brokers are permitted to do..
- charge fees - advertise the availability for vatical settlements - introduce viators to settlement providers
All of these are standard exclusions found in a life insurance policy..
- hazardous occupations - aviation - war
Risk factors of life insurance underwriting..
- health history - hobbies - occupation
All of these are considered a form of advertising
- insurer's billboard - formal sales presentation - insurer's direct mailing to a target audience
Commissioner is responsible for all of the following..
- issue cease & desist orders - conduct hearings - regulate premium rates
Common exclusions to a life insurance policy..
- military service - aviation - hazardous occupations
Simon has purchased fixed immediate annuity. His payment amount will be dependent upon principal, interest, and the contracts..
income period
All of the following are unfair claims practices..
- refusing to pay claims without reasonable investigation - failing to promptly provide reasonable explanation of any certain denials - offering low amounts to force insureds to institute litigation
The PA insurance department is responsible for
- regulations - producers - reinsurers
Factors taken into consideration when applying for life insurance..
- social security - savings - pension
An immediate annuity has been purchased with a single premium. When does the annuitant typically begin receiving benefit payments..
1 month
A life insurance policy becomes incontestable after it has been in force for..
2 years
An accelerated death benefit in PA must be at least what percentage of the total death benefit..
25%
An example of risk sharing would be..
Doctors pooling their money to cover malpractice exposures is an example of risk sharing
Variable life insurance & universal life insurance are similar. Which of these are held exclusively by variable universal life insurance..
Policyowner has the right to select the investments which will provide the the greatest return
Which protects a PA policy owner from a mistake made on an application 2 years ago?
incontestability provision
Describe a conditional insurance contract..
a contract that requires certain conditions or acts by the insured individual
What policy feature makes a universal life policy different than a whole life policy..
a flexible premium special
A producer's license CANNOT be revoked without
a hearing given to the producer
Single premium cash value policy can be described as..
a policy that is paid up only after one payment
Which dividend option would an insurer invest the policy owners money & add any interest earnings as the dividends accrue..
accumulation at interest option
A non contributory health insurance plan helps the insurer avoid..
adverse selection
Maria would like an annuity that provides a guaranteed accumulation or payout. The type of annuity she is seeking is called..
annuity certain
A renewable term life insurance policy can be renewed
anytime the policy owners request
A licensee may only sell, solicit, & negotiate insurance contracts on behalf of the...
appointing insurer
