Pennsylvania Life Insurance Complete
Exam Practice Questions with Elaborate
Answers | Latest Edition
1. A temporary license may be issued without state examination to all of the
following except - ANSWER A prospective producer who is currently
enrolled in a pre-licensing insurance class
2. Advertising regulations exist in order to - ANSWER Demonstrate full and
truthful disclosures to the public
3. Commission may be shared by - ANSWER Licensed and appropriate
producer
4. If the Insurance Department determines that the issuance of a temporary
producer license serves in the public's best interest, the license may be
issued to - ANSWER an executor of a deceased producer's estate
5. A(n) _______ company is owned exclusively by shareholders - ANSWER
stock
6. Every Pennsylvania insurer, upon receiving notification of a claim, must
acknowledge receipt of the notice within - ANSWER 10 days
7. An order issued by the commissioner that prohibits a specific practice listed
in the order is called a(n) - ANSWER Cease and desist order
,8. A producer's license cannot be revoked without - ANSWER a hearing given
to the producer
9. A producer who sells an individual life insurance policy in Pennsylvania
MUST deliver to the policyowner a(n) - ANSWER Policy Summary and
Buyer's Guide
10.Which of these statements regarding the annuitant is correct? - ANSWER
The annuitant's life expectancy determines the annuity payments
11.Kathy's annuity is currently experiencing tax deferred growth until she
retires. Which phase is the annuity in? - ANSWER Accumulation period
12.When does an immediate annuity begin making payments? - ANSWER
After the first premium has been paid
13.Under a group life policy, the insurer will issue an individual _____ to the
policyowner for delivery to each person insured. - ANSWER certificate
14.Fraternal Benefit Society has each of the following characteristics EXCEPT
- ANSWER Exist For profit
15.Which of the following is an annuity that is linked to a market related index?
- ANSWER Equity indexed annuity
16.Karen is a producer who has obtained personal information about a client
without having a legitimate reason to do so. Under the McCarran-Ferguson
Act, what is the minimum penalty for this? - ANSWER $10,000
,17.Fixed annuities provide all of the following EXCEPT - ANSWER hedge
against inflation
18.Which market index is normally associated with an indexed annuity's rate of
return? - ANSWER S & P 500
19.Legal purpose is a term used in contract law meaning - ANSWER there
must be legal reasons for entering into the contract
20.The least expensive option to pay off a 30 year mortgage would be -
ANSWER decreasing term life
21.On occasion, insurable interest may exist in the absence of economic
interest. Which of the following examples does this pertain to? - ANSWER
husband/wife
22.The Pennsylvania life and health guaranty association protects life insurance
death benefit claims up to - ANSWER $300,000
23.In Pennsylvania, an insurance producer license can be denied for failure to
pay each of the following EXCEPT? - ANSWER property tax
24.A life insurance policy becomes incontestable after it has been in force for -
ANSWER 2 years
25.Which of the following is not an unfair claim settlement practice? -
ANSWER Providing claim payments to insureds according to the policy's
coverage guidelines
, 26.An Accelerated Death Benefit in Pennsylvania must be at least what
percentage of the total death benefit? - ANSWER 25%
27.Any of the following may be an unfair claims practice EXCEPT -
ANSWER Refusing to pay persons bringing false or fraudulent claims
28.The Pennsylvania Department of insurance may take each of the following
except - ANSWER Incarceration
29.The Pennsylvania insurance department is responsible for each of the
following except - ANSWER shareholders
30.Violating Pennsylvania insurance law may result in which of the following
Insurance Department actions? - ANSWER Issuance of a cease and desist
order after a hearing
31.Violations of US Code Title 18 section 1033, may result in - ANSWER
Fine and/or imprisonment
32.During the first two years a life insurance policy is in force, the insurer may
contest a policy for all of the following except - ANSWER Misstatement of
age in application
33.What is the purpose of the Pennsylvania life and heath insurance guaranty
association - ANSWER Provide policy owner protection if an insurer
becomes insolvent
34.Proceeds of the viatical settlement contract could be subject to the claims of
- ANSWER creditors
Exam Practice Questions with Elaborate
Answers | Latest Edition
1. A temporary license may be issued without state examination to all of the
following except - ANSWER A prospective producer who is currently
enrolled in a pre-licensing insurance class
2. Advertising regulations exist in order to - ANSWER Demonstrate full and
truthful disclosures to the public
3. Commission may be shared by - ANSWER Licensed and appropriate
producer
4. If the Insurance Department determines that the issuance of a temporary
producer license serves in the public's best interest, the license may be
issued to - ANSWER an executor of a deceased producer's estate
5. A(n) _______ company is owned exclusively by shareholders - ANSWER
stock
6. Every Pennsylvania insurer, upon receiving notification of a claim, must
acknowledge receipt of the notice within - ANSWER 10 days
7. An order issued by the commissioner that prohibits a specific practice listed
in the order is called a(n) - ANSWER Cease and desist order
,8. A producer's license cannot be revoked without - ANSWER a hearing given
to the producer
9. A producer who sells an individual life insurance policy in Pennsylvania
MUST deliver to the policyowner a(n) - ANSWER Policy Summary and
Buyer's Guide
10.Which of these statements regarding the annuitant is correct? - ANSWER
The annuitant's life expectancy determines the annuity payments
11.Kathy's annuity is currently experiencing tax deferred growth until she
retires. Which phase is the annuity in? - ANSWER Accumulation period
12.When does an immediate annuity begin making payments? - ANSWER
After the first premium has been paid
13.Under a group life policy, the insurer will issue an individual _____ to the
policyowner for delivery to each person insured. - ANSWER certificate
14.Fraternal Benefit Society has each of the following characteristics EXCEPT
- ANSWER Exist For profit
15.Which of the following is an annuity that is linked to a market related index?
- ANSWER Equity indexed annuity
16.Karen is a producer who has obtained personal information about a client
without having a legitimate reason to do so. Under the McCarran-Ferguson
Act, what is the minimum penalty for this? - ANSWER $10,000
,17.Fixed annuities provide all of the following EXCEPT - ANSWER hedge
against inflation
18.Which market index is normally associated with an indexed annuity's rate of
return? - ANSWER S & P 500
19.Legal purpose is a term used in contract law meaning - ANSWER there
must be legal reasons for entering into the contract
20.The least expensive option to pay off a 30 year mortgage would be -
ANSWER decreasing term life
21.On occasion, insurable interest may exist in the absence of economic
interest. Which of the following examples does this pertain to? - ANSWER
husband/wife
22.The Pennsylvania life and health guaranty association protects life insurance
death benefit claims up to - ANSWER $300,000
23.In Pennsylvania, an insurance producer license can be denied for failure to
pay each of the following EXCEPT? - ANSWER property tax
24.A life insurance policy becomes incontestable after it has been in force for -
ANSWER 2 years
25.Which of the following is not an unfair claim settlement practice? -
ANSWER Providing claim payments to insureds according to the policy's
coverage guidelines
, 26.An Accelerated Death Benefit in Pennsylvania must be at least what
percentage of the total death benefit? - ANSWER 25%
27.Any of the following may be an unfair claims practice EXCEPT -
ANSWER Refusing to pay persons bringing false or fraudulent claims
28.The Pennsylvania Department of insurance may take each of the following
except - ANSWER Incarceration
29.The Pennsylvania insurance department is responsible for each of the
following except - ANSWER shareholders
30.Violating Pennsylvania insurance law may result in which of the following
Insurance Department actions? - ANSWER Issuance of a cease and desist
order after a hearing
31.Violations of US Code Title 18 section 1033, may result in - ANSWER
Fine and/or imprisonment
32.During the first two years a life insurance policy is in force, the insurer may
contest a policy for all of the following except - ANSWER Misstatement of
age in application
33.What is the purpose of the Pennsylvania life and heath insurance guaranty
association - ANSWER Provide policy owner protection if an insurer
becomes insolvent
34.Proceeds of the viatical settlement contract could be subject to the claims of
- ANSWER creditors
