PA life, accident, and health practice questions with complete solutions

PA life, accident, and health practice questions with complete solutions Premium payments for a universal life policy are NOT used for: Separate account investments Under PA statute, first year commission for long-term care insurance may not be greater than 50% of the first year premium 10-year level term life InsPol that has a death benefit of $2000,000. It is true that: The face amount and premium will remain constant over the 10 year period Insurance premium is determined by each of the following factors except: Mortality, Interest, Expenses, liquidity) Liquidity ________ is a factor that would be considered by an insurer when determining whether to accept a group life plan Average age In PA, no legal action may be taken against an insurer for failure to honor a valid claim after the expiration of __________ years from the time proof of loss is furnished Three years (There is a waiting period of 60 days to file a lawsuit after a claim for loss has been filed by the insured. No lawsuit may be filed after 3 years have passed from when the claim was submitted) A medical provider that accepts Medicare assignment must accept payment based upon a defined Medicare schedule as payment in full If nonforfeiture option is exercised by using ones life policy's cash value to purchase an extended term insurance option, when the term insurance expires the protection ends Indemnity plan provides the insured a specific dollar amount for services All of the following are functions of an insurance clause EXCEPT (States the conditions under which the policy will pay, outlines the kind of benefits provided, primarily describes the free- look period, provides the policy's scope and limits of coverage) Primarily describes the free- look period Commissioner has the right and duty to audit insurer financial reports and conduct market studies A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered and an existing insurance policy is called Replacement Benefit that enables someone to defer the current receipt of income and have it paid at a later date, potentially when at a lower tax bracket. Deferred compensation option Medicare Part B is funded through General tax revenue and user premiums The individual paid on a fee-for-service basis is the provider If an insured is injured as an innocent bystander when someone committed a felony the insurer is liable for the loss What type of policy would only provide coverage for specific types of illnesses (cancer, stroke, etc)? Dread disease Level premium term life insurance policies Have premiums that are averaged over the policy period What type of insurance policy pays the face amount at the end of the specified period if the insured is still alive? Endowement policy