Pennsylvania State Exam LAH
Which of these would not be considered a presumptive disability? - answerless of a leg
or arm
Group dental plans will frequently place a limit on annual benefits in order to minimize -
answer adverse selection
Sharon is the policyowner of a $50,000 life insurance policy. Her son, Mike, is the
beneficiary. If Sharon MUST obtain Mike's signature in order to change the beneficiary,
what kind of beneficiary designation is this?
Tertiary
Contingent
Revocable
Irrevocable - answer Irrevocable
After an annuity has been in force for __________ years, it becomes incontestable -
answer2
Which of the following is not part of an insurance contract? - answerCertificate of
Authority
What is the name of the provision which states that a copy of the application must be
attached to the policy when issued? - answerentire contract
A rider that assures premiums will be paid on a juvenile policy until the child reaches a
specific age is called a(n)
waiver of premium rider
payor rider
automatic premium loan rider
juvenile waiver rider - answerpayor rider
The act of using misrepresentation to induce an insured person to terminate an existing
policy and purchase a new policy is referred to as - answertwisting
,Under a contract of adhesion, - answerthe terms must be accepted or rejected in full
Which of the following provides Medicare supplement policies? - answerprivate
insurance companies
Medicare Part A does not pay for medical benefits provided for treatment in a skilled
nursing facility beyond - answer100 days
Loans obtained by a policyowner against the cash value of a life insurance policy
are treated as taxable income
would not be treated as taxable income
are limited by the face amount of the policy
would be subject to a Federal estate tax - answerwould not be treated as taxable
income
What does the word "level" in Level Term describe? - answerthe face amount
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 - answerpartial
surrender
What is issued to each employee of an employer health plan? - answerCertificate
In Pennsylvania, what's the requirement for a minor to receive proceeds from a death
benefit? - answera guardian must be appointed
The role of the federal government was expanded when Medicaid was established by
allowing the state to - answerreceive matching funds to expand public assistance
programs
What is the purpose for having an accelerated death benefit on a life insurance policy? -
answerit allows for cash advances to be paid against the death benefit if the insured
becomes terminally ill
Tom has a home health care benefit and is confined to his home. Which of these
benefits is NOT typically covered? - answerfull-time nursing care
An annuitant is guaranteed to NOT outlive their benefits with a(n) - answerguaranteed
lifetime withdrawal benefit
The deeds and actions of a producer indicate what kind of authority? - answerapparent
,In regards to a life insurance contract, which of the following statements is NOT true
regarding the concept of insurable interest? - answerinsurable interest can be
established sufficiently by sentimental attachment alone
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following
statements is true? - answerthe policy may be paid up early by using policy dividends
An insurer has the right to recover payment made to the insured from the negligent
party. These rights are called - answersubrogation
Which of these will have the highest monthly payout upon annuitization? -
answerstraight life
Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which
of these benefit options would he choose? - answerGuaranteed lifetime withdrawal
benefit
Which of these is not considered to be a purpose of an annuity? - answerannuities are
intended to create an estate
An example of endodontic treatment is a - answerroot canal
Which of the following is considered to be an alternative to a life settlement? -
answeraccelerated death benefit rider
The focus of major medical insurance is providing coverage for - answermedical and
hospitalization expenses
Pierre is covered by his employer's group major medical plan. His employer pays for
75% of the premium and he pays for 25%. How much would a $10,000 benefit be
taxable as income under this plan? - answer0
Underwriters can acquire information from all of the following sources EXCEPT
Medical Information Bureau (MIB)
consumer reports
attending physician's statements
genetic testing - answergenetic testing
A doctor who accepts Medicare Assignment agrees to which of the following? -
answerdoctor cannot charge more than Medicare's scheduled coverage
What is the purpose of a disability income benefit? - answerprovide money for living
expenses
What is the automatic continuance of insurance coverage referred to as? -
answerrenewal
, Which approach predicts a person's earning potential and determines how much of that
amount would be devoted to dependents? - answerHuman life value approach
Medicare Part B covers - answerdoctor's charges
If an insured dies during the grace period with no premiums paid - answerthe policy
would be payable, minus the premium amount
An immediate annuity has been purchased with a single premium. When does the
annuitant typically begin receiving benefit payments? - answer1 month
A clause that allows an insurer the right to terminate coverage at any anniversary date
is called a(n) - answeroptional renewability clause
Which annuity payout option allows the policyowner to choose a pre-determined
number of benefit payments? - answerperiod certain
Who issues Medicare Supplement policies? - answerinsurance companies
Sole proprietors are permitted tax deductions for health costs paid from their earnings in
the amount of - answer100% of costs
What is the difference between a long-term care partnership plan and a non-partnership
plan? - answerasset protection
Which of these annuities require premium payments that vary from year to year? -
answerflexible premium deferred annuity
An accelerated death benefit in Pennsylvania must be at least what percentage of the
total death benefit? - answer25%
A licensee may only sell, solicit, and negotiate insurance contracts on behalf of the -
answerappointing insurer
In a long-term care policy, the right-to-examine period is - answer30 days
A non-admitted insurer - answeris not afforded protection by the guaranty fund
What is the elimination period of an individual disability policy? - answertime period a
disabled person must wait before benefits are paid
Level premium permanent insurance accumulates a reserve that will eventually -
answerequal the face amount of the policy
Under a Traditional IRA, interest earned is taxed - answerupon distribution
Which of these would not be considered a presumptive disability? - answerless of a leg
or arm
Group dental plans will frequently place a limit on annual benefits in order to minimize -
answer adverse selection
Sharon is the policyowner of a $50,000 life insurance policy. Her son, Mike, is the
beneficiary. If Sharon MUST obtain Mike's signature in order to change the beneficiary,
what kind of beneficiary designation is this?
Tertiary
Contingent
Revocable
Irrevocable - answer Irrevocable
After an annuity has been in force for __________ years, it becomes incontestable -
answer2
Which of the following is not part of an insurance contract? - answerCertificate of
Authority
What is the name of the provision which states that a copy of the application must be
attached to the policy when issued? - answerentire contract
A rider that assures premiums will be paid on a juvenile policy until the child reaches a
specific age is called a(n)
waiver of premium rider
payor rider
automatic premium loan rider
juvenile waiver rider - answerpayor rider
The act of using misrepresentation to induce an insured person to terminate an existing
policy and purchase a new policy is referred to as - answertwisting
,Under a contract of adhesion, - answerthe terms must be accepted or rejected in full
Which of the following provides Medicare supplement policies? - answerprivate
insurance companies
Medicare Part A does not pay for medical benefits provided for treatment in a skilled
nursing facility beyond - answer100 days
Loans obtained by a policyowner against the cash value of a life insurance policy
are treated as taxable income
would not be treated as taxable income
are limited by the face amount of the policy
would be subject to a Federal estate tax - answerwould not be treated as taxable
income
What does the word "level" in Level Term describe? - answerthe face amount
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 - answerpartial
surrender
What is issued to each employee of an employer health plan? - answerCertificate
In Pennsylvania, what's the requirement for a minor to receive proceeds from a death
benefit? - answera guardian must be appointed
The role of the federal government was expanded when Medicaid was established by
allowing the state to - answerreceive matching funds to expand public assistance
programs
What is the purpose for having an accelerated death benefit on a life insurance policy? -
answerit allows for cash advances to be paid against the death benefit if the insured
becomes terminally ill
Tom has a home health care benefit and is confined to his home. Which of these
benefits is NOT typically covered? - answerfull-time nursing care
An annuitant is guaranteed to NOT outlive their benefits with a(n) - answerguaranteed
lifetime withdrawal benefit
The deeds and actions of a producer indicate what kind of authority? - answerapparent
,In regards to a life insurance contract, which of the following statements is NOT true
regarding the concept of insurable interest? - answerinsurable interest can be
established sufficiently by sentimental attachment alone
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following
statements is true? - answerthe policy may be paid up early by using policy dividends
An insurer has the right to recover payment made to the insured from the negligent
party. These rights are called - answersubrogation
Which of these will have the highest monthly payout upon annuitization? -
answerstraight life
Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which
of these benefit options would he choose? - answerGuaranteed lifetime withdrawal
benefit
Which of these is not considered to be a purpose of an annuity? - answerannuities are
intended to create an estate
An example of endodontic treatment is a - answerroot canal
Which of the following is considered to be an alternative to a life settlement? -
answeraccelerated death benefit rider
The focus of major medical insurance is providing coverage for - answermedical and
hospitalization expenses
Pierre is covered by his employer's group major medical plan. His employer pays for
75% of the premium and he pays for 25%. How much would a $10,000 benefit be
taxable as income under this plan? - answer0
Underwriters can acquire information from all of the following sources EXCEPT
Medical Information Bureau (MIB)
consumer reports
attending physician's statements
genetic testing - answergenetic testing
A doctor who accepts Medicare Assignment agrees to which of the following? -
answerdoctor cannot charge more than Medicare's scheduled coverage
What is the purpose of a disability income benefit? - answerprovide money for living
expenses
What is the automatic continuance of insurance coverage referred to as? -
answerrenewal
, Which approach predicts a person's earning potential and determines how much of that
amount would be devoted to dependents? - answerHuman life value approach
Medicare Part B covers - answerdoctor's charges
If an insured dies during the grace period with no premiums paid - answerthe policy
would be payable, minus the premium amount
An immediate annuity has been purchased with a single premium. When does the
annuitant typically begin receiving benefit payments? - answer1 month
A clause that allows an insurer the right to terminate coverage at any anniversary date
is called a(n) - answeroptional renewability clause
Which annuity payout option allows the policyowner to choose a pre-determined
number of benefit payments? - answerperiod certain
Who issues Medicare Supplement policies? - answerinsurance companies
Sole proprietors are permitted tax deductions for health costs paid from their earnings in
the amount of - answer100% of costs
What is the difference between a long-term care partnership plan and a non-partnership
plan? - answerasset protection
Which of these annuities require premium payments that vary from year to year? -
answerflexible premium deferred annuity
An accelerated death benefit in Pennsylvania must be at least what percentage of the
total death benefit? - answer25%
A licensee may only sell, solicit, and negotiate insurance contracts on behalf of the -
answerappointing insurer
In a long-term care policy, the right-to-examine period is - answer30 days
A non-admitted insurer - answeris not afforded protection by the guaranty fund
What is the elimination period of an individual disability policy? - answertime period a
disabled person must wait before benefits are paid
Level premium permanent insurance accumulates a reserve that will eventually -
answerequal the face amount of the policy
Under a Traditional IRA, interest earned is taxed - answerupon distribution
