Pennsylvania Laws and Rules Chapter 12 Questions and Answers Already Passed

Pennsylvania Laws and Rules Chapter 12 Questions and Answers Already Passed What is the purpose of the Pennsylvania Life and Health Insurance Guaranty Association? 1) Assist an applicant choose the best insurer 2) Assist an applicant choose the right amount of coverage 3) Provide each policyowner a buyer's guide and policy summary 4) Provide policyowner protection if an insurer becomes insolvent Provide policyowner protection if an insurer becomes insolvent Viatical settlement brokers send packets of information to potential viatees. These information packets normally include existing policy terms and which of the following? 1) Viator's medical prognosis 2) Proceeds of the settlement to be placed in a trust account 3) Executed absolute assignment 4) Brochure describing the process of viatical settlements Viator's medical prognosis In Pennsylvania, what's the requirement for a minor to receive proceeds from a death benefit? 1) Has to be at least 15 years old 2) Must live in the same state as insured 3) The Commissioner must approve 4) A guardian must be appointed A guardian must be appointed An Accelerated Death Benefit in Pennsylvania must be at least what percentage of the total death benefit? 15% 25% 50% 75% 25% Which of the following statements about the contestability of a life insurance policy is true? 1) The policy cannot be contested by the insurer once it is paid for and issued 2) The policy can be contested by the insurer only during the first two years of the contract 3) The policy can never be contested by the insurer 4) The policy can always be contested by the insurer The policy can be contested by the insurer only during the first two years of the contract Any of the following may be an unfair claims practice EXCEPT 1) Refusing to pay claims without a reasonable investigation 2) Refusing to pay persons bringing false or fraudulent claims 3) Failing to promptly provide reasonable explanation of any claim denials 4) Offering low amounts to force insureds to institute litigation Refusing to pay persons bringing false or fraudulent claims A Pennsylvania temporary producer license may be issued for a period not to exceed 30 days 45 days 90 days 180 days 180 days A life insurance producer licensed in the Commonwealth of Pennsylvania is authorized to 1) Approve the payments of a claim 2) Reinstate an insurance contract after the expiration date 3) Solicit, receive and forward applications to the insurer 4) Replace a policy without notifying the insurer Solicit, receive and forward applications to the insurer Which of the following is the Pennsylvania Insurance Department NOT responsible for? Regulations Producers Shareholders Reinsurers Shareholders Violations of US Code Title 18 section 1033, may result in 1) Fine and/or imprisonment 2) Cease and Desist Order 3) Suspension of Producer's license 4) Loss of company appointments Fine and/or imprisonment A producer that willfully violates any provision of Pennsylvania Insurance law may be imposed to a maximum penalty set by the Commissioner at $1,500 per violation $3,000 per violation $5,000 per violation one year imprisonment $5,000