PA Insurance Exam Practice
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1. Child Term Rider Jonas is a whole life insurance policyowner and would
like to add coverage for his two children. Which of the
following products would allow him to accomplish this?
2. Lifetime Protection A limited payment whole life policy provides
3. Can be converted to permanent Donald is the primary insured of a life insurance policy
coverage without evidence of in- and adds a children's term rider. What is the advantage
surability of adding this rider?
4. a policy that is paid up after only A single premium cash value policy can be described as
one payment
5. term, whole, and universal life in- Whole life policy with premiums paid up after 20 years
surance What types of life insurance are normally used for key
employee indemnification
6. equal the face amount of the policy Level premium permanent insurance accumulates a
reserve that will eventually
7. universal life A life insurance policy that contains a guaranteed in-
terest rate with the chance to earn a rate that is higher
than the guaranteed rate is called
8. Variable Universal Policy Which type of life insurance offers flexible premiums, a
flexible death benefit, and the choice of how the cash
value will be invested
9. hedge against inflation Index whole life insurance contains a securities com-
ponent that acts as a(n
10. Which type of multiple protection survivorship life policy
policy pays on the death of the last
person?
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11. All of these are valid options for an a nonforfeiture option can be used to increase the
Adjustable Life Policy EXCEP death benefit
12. A securities license is required for a Variable life insurance
life insurance producer to sell
13. Seeks temporary protection and Term insurance is appropriate for someone who
lower premium
14. level premiums When a decreasing term policy is purchased, it contains
a decreasing death benefit and
15. Death benefit Which of these is NOT subject to income taxation under
a Modified Endowment Contract (MEC)?
16. Decreasing The least expensive option to pay off a 30-year mort-
gage balance would be
17. Equity index whole life Peter has a policy where 80% to 90% of the premium is
invested in traditional fixed income securities and the
remainder of the premium is invested in contracts tied
to a stipulated stock index. What kind of policy is this?
18. coverage is eliminated What happens to the coverage under a children's term
rider when that child reaches a certain specified age
19. Joint A life insurance policy written on one contract for two
people in which it is payable upon the first death is
called
20. Period of time after the premium is What is an insurance policy's grace period
due but the policy remains in force
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21. accumulation of interest Of the following dividend options, which of these is
taxable
22. Nonforfeiture provision A provision in a whole life policy that allows a policy-
owner to terminate the policy in return for a reduced
paid-up policy of the same type is called a(n)
23. Accident The double indemnity provision in a life insurance pol-
icy pertains to an insured's death caused by a(n
24. A proprated death benefit based If an insured's age on a life insurance policy has been
on the amount of insurance the in- misstated, what is the insurer's liability if the insured
sured premiums would have been dies
if purchased at the correct age
25. Medical underwriting A guaranteed issue insurance policy has no
26. Net death benefit will be reduced if Joanne has a $100,000 whole life policy with an ac-
the loan is not paid cumulated $25,000 of cash value. She would like to
borrow $15,000 against the cash value. Which of the
following statements is TRUE
27. Payor benefit Which type of rider will waive the premium on a child's
life insurance policy if the parent paying the premium
dies
28. Pay age-corrected benefits What is an insurer required to do when faced with an
error made under the Misstatement of Age provision?
29. 20 How many employees must an employer have for a
terminated employee to be eligible for COBRA?
30. 4000 Ron has a life insurance policy with a face value of
$100,000 and a cost of living rider. If the consumer
Study online at https://quizlet.com/_4ziuat
1. Child Term Rider Jonas is a whole life insurance policyowner and would
like to add coverage for his two children. Which of the
following products would allow him to accomplish this?
2. Lifetime Protection A limited payment whole life policy provides
3. Can be converted to permanent Donald is the primary insured of a life insurance policy
coverage without evidence of in- and adds a children's term rider. What is the advantage
surability of adding this rider?
4. a policy that is paid up after only A single premium cash value policy can be described as
one payment
5. term, whole, and universal life in- Whole life policy with premiums paid up after 20 years
surance What types of life insurance are normally used for key
employee indemnification
6. equal the face amount of the policy Level premium permanent insurance accumulates a
reserve that will eventually
7. universal life A life insurance policy that contains a guaranteed in-
terest rate with the chance to earn a rate that is higher
than the guaranteed rate is called
8. Variable Universal Policy Which type of life insurance offers flexible premiums, a
flexible death benefit, and the choice of how the cash
value will be invested
9. hedge against inflation Index whole life insurance contains a securities com-
ponent that acts as a(n
10. Which type of multiple protection survivorship life policy
policy pays on the death of the last
person?
, PA Insurance Exam Practice
Study online at https://quizlet.com/_4ziuat
11. All of these are valid options for an a nonforfeiture option can be used to increase the
Adjustable Life Policy EXCEP death benefit
12. A securities license is required for a Variable life insurance
life insurance producer to sell
13. Seeks temporary protection and Term insurance is appropriate for someone who
lower premium
14. level premiums When a decreasing term policy is purchased, it contains
a decreasing death benefit and
15. Death benefit Which of these is NOT subject to income taxation under
a Modified Endowment Contract (MEC)?
16. Decreasing The least expensive option to pay off a 30-year mort-
gage balance would be
17. Equity index whole life Peter has a policy where 80% to 90% of the premium is
invested in traditional fixed income securities and the
remainder of the premium is invested in contracts tied
to a stipulated stock index. What kind of policy is this?
18. coverage is eliminated What happens to the coverage under a children's term
rider when that child reaches a certain specified age
19. Joint A life insurance policy written on one contract for two
people in which it is payable upon the first death is
called
20. Period of time after the premium is What is an insurance policy's grace period
due but the policy remains in force
, PA Insurance Exam Practice
Study online at https://quizlet.com/_4ziuat
21. accumulation of interest Of the following dividend options, which of these is
taxable
22. Nonforfeiture provision A provision in a whole life policy that allows a policy-
owner to terminate the policy in return for a reduced
paid-up policy of the same type is called a(n)
23. Accident The double indemnity provision in a life insurance pol-
icy pertains to an insured's death caused by a(n
24. A proprated death benefit based If an insured's age on a life insurance policy has been
on the amount of insurance the in- misstated, what is the insurer's liability if the insured
sured premiums would have been dies
if purchased at the correct age
25. Medical underwriting A guaranteed issue insurance policy has no
26. Net death benefit will be reduced if Joanne has a $100,000 whole life policy with an ac-
the loan is not paid cumulated $25,000 of cash value. She would like to
borrow $15,000 against the cash value. Which of the
following statements is TRUE
27. Payor benefit Which type of rider will waive the premium on a child's
life insurance policy if the parent paying the premium
dies
28. Pay age-corrected benefits What is an insurer required to do when faced with an
error made under the Misstatement of Age provision?
29. 20 How many employees must an employer have for a
terminated employee to be eligible for COBRA?
30. 4000 Ron has a life insurance policy with a face value of
$100,000 and a cost of living rider. If the consumer
