Pennsylvania Life Only Final Exam Questions and Answers Already Passed

Pennsylvania Life Only Final Exam Questions and Answers Already Passed Which contract element is insurable interest a component of? Legal purpose When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach? The family's financial objectives if the income earner were to die or become disabled 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 ______ is NOT an element of a valid contract. Countersignature A licensee can have his/her license denied or revoked by the Commissioner if the licensee has committed insurance-related fraud or dishonesty When a producer offers something of value in return for the purchase of an insurance policy, which prohibited sales practice has been committed? Inducement The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Certificate of coverage and benefits What is an insurance policy's grace period? Period of time after the premium is due but the policy remains in force Which of these factors help determine an insured's life insurance premium? avocation (hobby) If an insured's age on a life insurance policy has been misstated, what is the insurer's liability if the insured dies? A prorated death benefit based on the amount of insurance the insured's premiums would have been if purchased at the correct age Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which phase is this annuity in? Accumulation period What is the name of the provision which states that a copy of the application must be attached to the policy when issued? Entire Contract Which type of life insurance is normally associated with a Payor Benefit rider? Juvenile insurance Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because the MEC tends to be an investment vehicle Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal, interest, and the contract's income period Which of the following policies does NOT build cash value? Term When collecting insurance premiums from a client, a producer MUST forward premiums to the insurer on a timely basis The free-look provision gives the policyowner the right to return the policy for a full refund within a specified number of days Which of the following enables a life policy to be replaced with another life policy and results in the postponement of the tax consequence? Section