PA LIFE INSURANCE FINAL PAPER 2025/2026 ANSWERS
AND QUESTIONS GRADED A+
✔✔Gains - ✔✔When a qualified plan starts making payments to its receipt, which
portion of the distributions is taxable?
✔✔Accumulation period - ✔✔Kathy's annuity is currently experiencing tax-deferred
growth until she retires. Which phase is this annuity in?
✔✔decreasing term life - ✔✔The least expensive option to pay off a 30-year mortgage
balance would be
✔✔The insured outlived the beneficiary - ✔✔An insured individual and the policy's
beneficiary die from the same accident. The common disaster provision states the
insurer will continue as if
✔✔Doctors pooling their money to cover malpractice exposures - ✔✔An example of risk
sharing would be
✔✔Increases - ✔✔What happens to the total amount of premium paid for an insurance
policy when the payment frequency increases?
✔✔Minus indebtedness and without interest - ✔✔The suicide clause of a life insurance
policy states that if an insured commits suicide within a stated period from the policy's
inception, the insurer will only be liable for a return of premiums paid
✔✔Policyowner - ✔✔During the accumulation period, who can surrender an annuity?
✔✔at the time of application - ✔✔According to life insurance contract law, insurable
interest exists
✔✔Annuity certain - ✔✔Maria would like an annuity that provides a guaranteed
accumulation or payout. The type of annuity she is seeking is called
✔✔Annuities are intended to liquidate an estate - ✔✔Which of these is NOT considered
to be a purpose of an annuity?
✔✔Transference - ✔✔Insurance represents the process of risk
✔✔A minimum of 12 months after date of purchase - ✔✔How soon can the benefit
payments begin with a deferred annuity?
✔✔Marital status - ✔✔All of these are considered key factors in underwriting life
insurance EXCEPT
, ✔✔Producer needs to be appointed by that insurer - ✔✔What is required before an
insurance producer can act as a representative of an insurer?
✔✔marital status - ✔✔An insurer would be committing Unfair Discrimination if coverage
was denied based upon
✔✔Buyers Guide - ✔✔Which of these is NOT considered a form of life insurance
advertisement?
✔✔Universal Life Policy - ✔✔Jon has a life insurance policy that has a face amount of
$300,000. After a number of years, the policy's cash value accumulates to $50,000 and
the face amount becomes $350,000. What kind of policy is this?
✔✔Replacement - ✔✔A transaction in which a new life insurance policy is purchased
and an existing life insurance policy is surrendered is called
✔✔Adjustable life - ✔✔A policyowner may change two policy features on what type of
life insurance?
✔✔Issuance of a cease and desist order after a hearing - ✔✔Violating Pennsylvania
insurance law may result in which of the following Insurance Department actions?
✔✔Reduction of premium dividend option - ✔✔A policyowner may exercise which of
these dividend options that uses the dividend to pay all or part of the next premium
due?
✔✔Unfair Claim Statement - ✔✔When an insurance company consistently fails to
provide reasonable explanations for the denial of a claim, this is called a(n)
✔✔Deferred Compensation - ✔✔All of the following are examples of a Business
Continuation Plan EXCEPT
✔✔the protection ends - ✔✔Dorian exercised a nonforfeiture option by using his life
policy's cash value to purchase an extended term insurance option. When the term
insurance expires,
✔✔After the first premium has been paid - ✔✔When does an immediate annuity begin
making payments?
✔✔Human life value - ✔✔Which of these is a method of determining the level of funds
required for ongoing support in the event of the breadwinner's death?
AND QUESTIONS GRADED A+
✔✔Gains - ✔✔When a qualified plan starts making payments to its receipt, which
portion of the distributions is taxable?
✔✔Accumulation period - ✔✔Kathy's annuity is currently experiencing tax-deferred
growth until she retires. Which phase is this annuity in?
✔✔decreasing term life - ✔✔The least expensive option to pay off a 30-year mortgage
balance would be
✔✔The insured outlived the beneficiary - ✔✔An insured individual and the policy's
beneficiary die from the same accident. The common disaster provision states the
insurer will continue as if
✔✔Doctors pooling their money to cover malpractice exposures - ✔✔An example of risk
sharing would be
✔✔Increases - ✔✔What happens to the total amount of premium paid for an insurance
policy when the payment frequency increases?
✔✔Minus indebtedness and without interest - ✔✔The suicide clause of a life insurance
policy states that if an insured commits suicide within a stated period from the policy's
inception, the insurer will only be liable for a return of premiums paid
✔✔Policyowner - ✔✔During the accumulation period, who can surrender an annuity?
✔✔at the time of application - ✔✔According to life insurance contract law, insurable
interest exists
✔✔Annuity certain - ✔✔Maria would like an annuity that provides a guaranteed
accumulation or payout. The type of annuity she is seeking is called
✔✔Annuities are intended to liquidate an estate - ✔✔Which of these is NOT considered
to be a purpose of an annuity?
✔✔Transference - ✔✔Insurance represents the process of risk
✔✔A minimum of 12 months after date of purchase - ✔✔How soon can the benefit
payments begin with a deferred annuity?
✔✔Marital status - ✔✔All of these are considered key factors in underwriting life
insurance EXCEPT
, ✔✔Producer needs to be appointed by that insurer - ✔✔What is required before an
insurance producer can act as a representative of an insurer?
✔✔marital status - ✔✔An insurer would be committing Unfair Discrimination if coverage
was denied based upon
✔✔Buyers Guide - ✔✔Which of these is NOT considered a form of life insurance
advertisement?
✔✔Universal Life Policy - ✔✔Jon has a life insurance policy that has a face amount of
$300,000. After a number of years, the policy's cash value accumulates to $50,000 and
the face amount becomes $350,000. What kind of policy is this?
✔✔Replacement - ✔✔A transaction in which a new life insurance policy is purchased
and an existing life insurance policy is surrendered is called
✔✔Adjustable life - ✔✔A policyowner may change two policy features on what type of
life insurance?
✔✔Issuance of a cease and desist order after a hearing - ✔✔Violating Pennsylvania
insurance law may result in which of the following Insurance Department actions?
✔✔Reduction of premium dividend option - ✔✔A policyowner may exercise which of
these dividend options that uses the dividend to pay all or part of the next premium
due?
✔✔Unfair Claim Statement - ✔✔When an insurance company consistently fails to
provide reasonable explanations for the denial of a claim, this is called a(n)
✔✔Deferred Compensation - ✔✔All of the following are examples of a Business
Continuation Plan EXCEPT
✔✔the protection ends - ✔✔Dorian exercised a nonforfeiture option by using his life
policy's cash value to purchase an extended term insurance option. When the term
insurance expires,
✔✔After the first premium has been paid - ✔✔When does an immediate annuity begin
making payments?
✔✔Human life value - ✔✔Which of these is a method of determining the level of funds
required for ongoing support in the event of the breadwinner's death?
