Pennsylvania Life Only – Final Exam Questions and Answers
Which contract element is insurable interest a component
Legal purpose
of?
When calculating the amount of life insurance needed for
The family's financial objectives if the income earner were
an income earner, what has to be determined when using
to die or become disabled
the Needs Approach?
Agreements made by terminally ill persons to sell their life
insurance policies at a discount in order to pay medical Viatical settlements
expenses are called
is NOT an element of a valid contract. Countersignature
A licensee can have his/her license denied or revoked by the licensee has committed insurance-related fraud or
the Commissioner if dishonesty
When a producer otters something of value in return for
the purchase of an insurance policy, which prohibited Inducement
sales practice has been committed?
The coverage, conditions, and limitations in the master
policy of a group contract can be found in which docu- Certificate of coverage and benefits
ment?
Period of time after the premium is due but the policy
What is an insurance policy's grace period?
remains in force
Which of these factors help determine an insured's life
avocation (hobby)
insurance premium?
A prorated death benefit based on the amount of insur-
If an insured's age on a life insurance policy has been
ance the insured's premiums would have been if pur-
misstated, what is the insurer's liability if the insured dies?
chased at the correct age
Kathy's annuity is currently experiencing tax-deferred
Accumulation period
growth until she retires. Which phase is this annuity in?
Entire Contract
1/9
, Pennsylvania Life Only – Final Exam Questions and Answers
What is the name of the provision which states that a copy
of the application must be attached to the policy when
issued?
Which type of life insurance is normally associated with a
Juvenile insurance
Payor Benefit rider?
Pre-death distributions from a modified endowment con-
tract (MEC) receive ditterent tax treatment than other life the MEC tends to be an investment vehicle
insurance policies because
Simon has purchased a fixed immediate annuity. His pay-
ment amount will be dependent upon principal, interest, income period
and the contract's
Which of the following policies does NOT build cash value? Term
When collecting insurance premiums from a client, a pro-
forward premiums to the insurer on a timely basis
ducer MUST
the right to return the policy for a full refund within a
The free-look provision gives the policyowner
specified number of days
Which of the following enables a life policy to be replaced
with another life policy and results in the postponement Section 1035 exchange
of the tax consequence?
Which of these is a method of determining the level of
funds required for ongoing support in the event of the Human life value
breadwinner's death?
What does the word "level" in Level Term describe? The face amount
Ambiguities in an insurance policy are always resolved in
insured
favor of the
A life insurance policyowner was injured in an automobile
Disability income rider
accident which results in a total and permanent disability.
2/9
Which contract element is insurable interest a component
Legal purpose
of?
When calculating the amount of life insurance needed for
The family's financial objectives if the income earner were
an income earner, what has to be determined when using
to die or become disabled
the Needs Approach?
Agreements made by terminally ill persons to sell their life
insurance policies at a discount in order to pay medical Viatical settlements
expenses are called
is NOT an element of a valid contract. Countersignature
A licensee can have his/her license denied or revoked by the licensee has committed insurance-related fraud or
the Commissioner if dishonesty
When a producer otters something of value in return for
the purchase of an insurance policy, which prohibited Inducement
sales practice has been committed?
The coverage, conditions, and limitations in the master
policy of a group contract can be found in which docu- Certificate of coverage and benefits
ment?
Period of time after the premium is due but the policy
What is an insurance policy's grace period?
remains in force
Which of these factors help determine an insured's life
avocation (hobby)
insurance premium?
A prorated death benefit based on the amount of insur-
If an insured's age on a life insurance policy has been
ance the insured's premiums would have been if pur-
misstated, what is the insurer's liability if the insured dies?
chased at the correct age
Kathy's annuity is currently experiencing tax-deferred
Accumulation period
growth until she retires. Which phase is this annuity in?
Entire Contract
1/9
, Pennsylvania Life Only – Final Exam Questions and Answers
What is the name of the provision which states that a copy
of the application must be attached to the policy when
issued?
Which type of life insurance is normally associated with a
Juvenile insurance
Payor Benefit rider?
Pre-death distributions from a modified endowment con-
tract (MEC) receive ditterent tax treatment than other life the MEC tends to be an investment vehicle
insurance policies because
Simon has purchased a fixed immediate annuity. His pay-
ment amount will be dependent upon principal, interest, income period
and the contract's
Which of the following policies does NOT build cash value? Term
When collecting insurance premiums from a client, a pro-
forward premiums to the insurer on a timely basis
ducer MUST
the right to return the policy for a full refund within a
The free-look provision gives the policyowner
specified number of days
Which of the following enables a life policy to be replaced
with another life policy and results in the postponement Section 1035 exchange
of the tax consequence?
Which of these is a method of determining the level of
funds required for ongoing support in the event of the Human life value
breadwinner's death?
What does the word "level" in Level Term describe? The face amount
Ambiguities in an insurance policy are always resolved in
insured
favor of the
A life insurance policyowner was injured in an automobile
Disability income rider
accident which results in a total and permanent disability.
2/9
