Practice Exam Insurance Company PA

States that have "no loss and no gain," laws require a replacing policy to

pay for ongoing claims under the policy it replaces

A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n)

payor rider

Under the Affordable Care Act, a large employer that does NOT provide health insurance and owes an employer mandate penalty MUST pay an annual penalty, which is calculated by multiplying $2,000 by

the number of full time employees minus 30

Which of these premium payment frequencies is not typically available to a policyowner?

Bi-weekly

In PA, who is responsible for CE course content approval

Commissioner

In PA, Which of the following is NOT something a licensee must do to renew their insurance license?

Confirm previous exam scores

An annuitant is guaranteed to NOT outlive their benefits with a(n)

Guaranteed lifetime withdrawal benefit

A producer that willfully violates any provision of PA Insurance law may be imposed to maximum penalty set by the Commissioner at.

$5,000 per violation

If an employee contributes 50% toward the disability plan premium provided by an employer, what would be considered the taxable income of a $1,000 monthly disability benefit?

$500

If a health policy is reinstated after it had lapsed for nonpayment, there is a waiting period,______ days before claim covering sickness will be covered

10 Days

Kathy pays a monthly premium on her health insurance policy. How long is her grace period?

10 days

Greg recently been terminated from his job that covered him for group life insurance. How long does he have to convert his coverage to an Individual policy

31 days

Which situation would qualify an individual for receiving benefits from a qualified long-term care policy?

Becoming cognitively impaired (mentally ill)

A producer license CANNOT be revoked without

A hearing given to the producer

An invididual most likely will have an insurable interest in insuring a person's life if

An economic interest exists for the continuance of the insured's life

What is required before an insurance producer can act as a representative of an insurer?

Producer needs to be appointed by that insured

The deeds and actions of a producer indicate what kind of authority

Apparent

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits must

Be the same and the premium cannot exceed 102%

Ted has a health insurance plan that requires him to pay a specific sum out of pocket before any benefits are paid in a calendar year. Which of these does his health plan have?

Calendar-year deductible

What is issued to each employee of an employer health plan?

Certificate

When an insured changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates?

Change of occupation provision

Kristi purchased an annuity that will pay her husband an income for 15 years. If he dies, this income will become payable to their children for the remainder of the period. Kristi has what kind of annuity?

Temporary Annuity Certain

Which of the following policies does NOT build cash value

Term

All of the following may be unfair claims practice EXCEPT

Denying an insured's fraudulent claim

All of these are characteristics of an Adjustable Life policy EXCEPT

Elimination Periods

Which of the following is required to maintain a producer's license is PA

Field Underwriter, who solicits insurance and earns a commission

Which of the following is considered to be an event or condition that increases the probability of insured"s loss?

Hazard

Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents?

Human Life value approach

The conversion privilege under a group life plan allows an employee to convert to a(n)

Individual plan upon employment termination

Violating PA insurance law may result in which of the following insurance department actions

Issuance of a cease and desist order after a hearing

In PA, completion of continuing education is required upon license renewal for which of the following?

Licensed individuals qualified in major lines of insurance

Which type of annuity stops all payments upon the death of the annuitant?

Life annuity

Which of these is NOT considered to be a common life insurance nonforfeiture option?

Life income annuity

Which type of plan would be most appropriate for an individual on Medicare and is concerned that Medicare will not pay for charges exceeding the approved amount?

Medicare Supplement Plan F

Richard owns an insurance policy that is renewable only at the option of the insurance company. His policy is considered to be

Optionally renewable

Which clause defines total disability as being unable to perform the major duties of the insured's regular occupation?

Own Occupation clause

An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. The provision that allows this is called

Partial Surrender

According to the Health insurance Portability and Accountability Act HIPPA, When can a group health policy renewal be denied

Participation or contribution rules have been violated

The major two actions required for a policyholder to comply with the Reinstatement Clause are

Provide evidence of insurability, pay past due premium

An insurance producer is often responsible for field underwriting during the application process. All of these are possible field underwriting roles expect

Providing commission information to the applicant

Dana is an employee who deposits a percentage of her income into her individual annuity. Her company also contributes a percentage into a separate company pension plan. What kind of annuity is this considered?

Qualified retirement annuity

Which accident and health policy provision allows the policyowner a stated amount of time to return a newly-delivered policy for a full refund of premiums if not satisified for any reason?

Right to examine

A Life insurance producer licensed in the Commonwealth of PA is authorized to

Solicit, receive and forward applications to the insurer

A long term care policy typically provides all of the following levels of care EXCEPT

acute care

A disability elimination period is best described as a

Time deductible

A partial surrender is allowed in which of the following life policies?

Universal Life

Reggie Purchased a life insurance policy with a face policy of $500,000. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Which type of life insurance policy is this?

Universal Life

Which of these would be considered a Limited-Pay Life policy?

Whole life policy with premiums paid up after 20 year

Field underwriting performed by the producer involves

commissioner

Sharing 50% of a producer's commission with the insured is an example of

illegal inducement

The PA Department on insurance may take each of the following actions EXPECT

incarceration

What happens to interest earned if the annuitant dies before the payout start date?

it is taxable

Producer commissions may NOT be paid to

licensed producers not appointed by an insurer

All _____ policies must be guaranteed renewable.

long-term care

A whole life policy option where extended term insurance is selected is called a(n)

nonforfeiture option