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Answers |Actual Complete Update |Already Graded A+
While completing an application for a health insurance policy, Dan discloses his partial
blindness. The insurer will treat his blindness as a: ✔Correct Answer-Physical Hazard
ABC insurance company fires Renee, a producer. She continues to interviews prospects, make
sale presentations with company materials, and collect premiums. When dealing with Renee,
the prospects believe that she has what kind of authority from ABC ✔Correct Answer-
apperant
Which two parties form a contract for life insurance ✔Correct Answer-Insurer and
policyowner
Mark knowingly exceeds his actual authority when dealing with a client. His actions cause a loss
to the insurance company he represents. Which statement is correct. ✔Correct Answer-The
company may be liable for marks actions
Life and health insurance companies regulate themselves through each of the following entities
or organizations EXCEPT: ✔Correct Answer-Financial Industry Regulatory Authority (FINRA)
An agent who sells insurance for an insurance company that does not have a certificate of
authority to operate in the state represents: ✔Correct Answer-Non-admitted Insurer
Which is not an example of a hazard ✔Correct Answer-John takes medication to control high
blood pressure
Which person would not be considered competent to enter into an insurance contract
✔Correct Answer-A person under the influence of alcohol
The Insurance Commissioner cannot suspend or revoke an agent's license for which of the
following reasons?
A. Failing to meet projected sales goals
B. Having an agent's license denied or suspended in another state
C. Forging an individual's name on an insurance application
D. Accepting insurance from an unlicensed individual ✔Correct Answer-A. Failing to meet
projected sales goals
Which of the following is not a remedy available to the Pennsylvania commissioner of insurance
for committing an unfair method of competition ✔Correct Answer-imprisonment
, Persons who commit crimes of dishonesty while engaged in interstate insurance transactions
can be sentenced to all of the following except ✔Correct Answer-Imprisonment for up to 25
years
If a person buys a new life insurance policy to replace an existing one, the producer must give
the applicant the Notice Regarding Replacement form no later than when? ✔Correct Answer-
When the application is taken
Agent Jill received a letter from the department of insurance asking her to submit verification of
having completed the continuing education requirements for the previous licensing period.
Three weeks later, the department sent another letter. Which penalty may the department
impose if Jill still has not responded to its request one month later? ✔Correct Answer-A fine
of up to $100 per day violation
Which of the following is not an unfair claims settlement practice if committed by an insurance
company in Pennsylvania? ✔Correct Answer-failing to promptly settle a claim for which
liability is uncertain
An insurer must notify its current customers of its privacy policies or practices at least once
every how often? ✔Correct Answer-12 months
Acme insurance company wants to employ Anthony as a producer. To do so, what action must
acme take? ✔Correct Answer-File a notice of appointment with the department
When comparing her insurance company's policies to those of Zenith insurance, Melanie makes
a misleading statement to convince an insurance prospect to terminate a policy with Zenith and
buy one from Melanie's company. What practice has Melanie engaged in? ✔Correct Answer-
Twisting
When holding insurance premiums and other funds, agents must act in what role? ✔Correct
Answer-Fiduciary Capacity
How long must an insurer keep copies of any illustrations used to sell its life insurance policies?
✔Correct Answer-Three years after policy expires
A type of permanent life insurance that lets the policyowner increase, reduce or even skip
premium payments at will without the policy lapsing best describes: ✔Correct Answer-
Universal Life Insurance
Why is it that endowment policies do not meet the IRS definition of life insurance ✔Correct
Answer-They mature before age 120
All of the following are possible ways to access a universal life insurance policy's cash value
EXCEPT:
Answers |Actual Complete Update |Already Graded A+
While completing an application for a health insurance policy, Dan discloses his partial
blindness. The insurer will treat his blindness as a: ✔Correct Answer-Physical Hazard
ABC insurance company fires Renee, a producer. She continues to interviews prospects, make
sale presentations with company materials, and collect premiums. When dealing with Renee,
the prospects believe that she has what kind of authority from ABC ✔Correct Answer-
apperant
Which two parties form a contract for life insurance ✔Correct Answer-Insurer and
policyowner
Mark knowingly exceeds his actual authority when dealing with a client. His actions cause a loss
to the insurance company he represents. Which statement is correct. ✔Correct Answer-The
company may be liable for marks actions
Life and health insurance companies regulate themselves through each of the following entities
or organizations EXCEPT: ✔Correct Answer-Financial Industry Regulatory Authority (FINRA)
An agent who sells insurance for an insurance company that does not have a certificate of
authority to operate in the state represents: ✔Correct Answer-Non-admitted Insurer
Which is not an example of a hazard ✔Correct Answer-John takes medication to control high
blood pressure
Which person would not be considered competent to enter into an insurance contract
✔Correct Answer-A person under the influence of alcohol
The Insurance Commissioner cannot suspend or revoke an agent's license for which of the
following reasons?
A. Failing to meet projected sales goals
B. Having an agent's license denied or suspended in another state
C. Forging an individual's name on an insurance application
D. Accepting insurance from an unlicensed individual ✔Correct Answer-A. Failing to meet
projected sales goals
Which of the following is not a remedy available to the Pennsylvania commissioner of insurance
for committing an unfair method of competition ✔Correct Answer-imprisonment
, Persons who commit crimes of dishonesty while engaged in interstate insurance transactions
can be sentenced to all of the following except ✔Correct Answer-Imprisonment for up to 25
years
If a person buys a new life insurance policy to replace an existing one, the producer must give
the applicant the Notice Regarding Replacement form no later than when? ✔Correct Answer-
When the application is taken
Agent Jill received a letter from the department of insurance asking her to submit verification of
having completed the continuing education requirements for the previous licensing period.
Three weeks later, the department sent another letter. Which penalty may the department
impose if Jill still has not responded to its request one month later? ✔Correct Answer-A fine
of up to $100 per day violation
Which of the following is not an unfair claims settlement practice if committed by an insurance
company in Pennsylvania? ✔Correct Answer-failing to promptly settle a claim for which
liability is uncertain
An insurer must notify its current customers of its privacy policies or practices at least once
every how often? ✔Correct Answer-12 months
Acme insurance company wants to employ Anthony as a producer. To do so, what action must
acme take? ✔Correct Answer-File a notice of appointment with the department
When comparing her insurance company's policies to those of Zenith insurance, Melanie makes
a misleading statement to convince an insurance prospect to terminate a policy with Zenith and
buy one from Melanie's company. What practice has Melanie engaged in? ✔Correct Answer-
Twisting
When holding insurance premiums and other funds, agents must act in what role? ✔Correct
Answer-Fiduciary Capacity
How long must an insurer keep copies of any illustrations used to sell its life insurance policies?
✔Correct Answer-Three years after policy expires
A type of permanent life insurance that lets the policyowner increase, reduce or even skip
premium payments at will without the policy lapsing best describes: ✔Correct Answer-
Universal Life Insurance
Why is it that endowment policies do not meet the IRS definition of life insurance ✔Correct
Answer-They mature before age 120
All of the following are possible ways to access a universal life insurance policy's cash value
EXCEPT:
