Pennsylvania Life Only Questions and Answers Graded A+

Pennsylvania Life Only Questions and Answers Graded A+ Which of the following is a requirement for any change in an insurance application? Change must be initialed by the applicant. Agreements made by terminally ill persons to sell their life insurance policies at a discount in order to pay medical expenses are called: Viatical settlements What is an insurance policy's grace period? Period of time after the premium is due but the policy remains in force. The cause of a loss is referred to as a: Peril A Roth IRA owner must be at least what age in order to make tax-free withdrawels? 59 1/2 and owned account for a minimum of 5 years. An annuitant dies during the distribution period. What kind of annuity will return to a beneficiary the difference between the annuity value and the income payments already made? Refund annuity Which type of annuity stops all payments upon the death of the annuitant? Life annuity Which of the following would disqualify a company's retirement plan from receiving favorable tax treatment? It is temporary Barbara's policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. This rider is called a: Guaranteed insurability rider A guaranteed issue insurance policy has no: Medical underwriting All of the following riders can increase the death benefit amount except: Waiver of Premium Lisa has recently bough a fixed annuity. Which of these is considered to be a disadvantage of owning this type of annuity? During periods of inflation, annuitants will experience an a decrease in purchasing power of their payments. A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a Collateral assignment Within how many days must a rollover be completed in order to avoid being taxed as current income? 60 The deeds and actions of a producer indicate what kind of authority? Apparent Which of the following is not considered advertising? A rating from a rating service company, such as A.M. Best Tonya has replaced her whole life policy with an annuity without incurring a tax penalty. This transaction is called a: 1035 Exchange 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: An executor of a deceased producer's estate Which of the following statements is correct regarding an individual applying for life or health insurance? The applicant's medical history may be analyzed and reported All of these are valid options for an Adjustable Life Policy except: A nonforfeiture option can be used to increase the death benefit An endorsement found in an insurance plan which modifies the provisions of the policy is called a: Rider A field underwriter's main task is: To ensure an applicant's medical information is accurate and complete A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called a: