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Exam (elaborations)

Pa Life, Accident, & Health Insurance Exam Questions With Complete Answers

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PA LIFE, ACCIDENT, & HEALTH INSURANCE EXAM QUESTIONS WITH COMPLETE ANSWERS

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Insurable interest may be based on


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economics or family relationships.




A life insurance policy that has been surrendered for cash


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may not be reinstated.




If an outstanding policy loan, plus interest, exceeds the cash value of the policy,

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the policy will lapse.




Life insurance premiums are based on


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mortality (death) plus company expenses minus interest earned on
company investments.




The automatic premium loan rider can


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be added to a whole life policy, but not to a term or credit life policy.




The entire contract includes


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the policy and anything else attached at issue, such as the application.




Universal life offers


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, flexible premiums and a minimum guaranteed rate of return.




Whole life benefits are


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bundled (packaged).




Universal life insurance is also known as


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interest sensitive whole life.




The authority a producer


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has that is written in his or her contract is known as express authority.




Although producers must sign the application,


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, they are not a party to the contract.




A universal life policy that has an investment component is called


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variable universal life.




The type of policy used to provide credit life insurance is decreasing term.


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decreasing term.




The law of large numbers


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allows insurers to predict claims more accurately.




A single premium policy has an immediate


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