PA /
Life
/ /
Insurance
/ /
Exam Questions With Correct Answers
/ // // // //
Karen /
/is //
a/
/producer /
/who /
/has //obtained //personal //information //about //a //client //without //having //a //legitimate //reason //to
//do //so. //Under //the //McCarran-
Ferguson /
/Act, /
/what /
/is /
/the /
/minimum /
/penalty //for //this? //- //CORRECT //ANSWERS(S)✔✔$10,000 //or //up //to //one //year //in //jail
A/
/type /
/of /
/insurer /
/that //is //owned //by //its //policyowners //is //called //- //CORRECT //ANSWERS(S)✔✔Mutual //insurer
What /
/is /
/considered /
,/to /
/be /
/the /
/primary /
/reason //for //buying //life //insurance? //- //CORRECT //ANSWERS(S)✔✔Provide //death //benefits
Fraternal /
/Benefit /
/Society /
/has /
/each /
/of /
/the /
/following /
/characteristics /
/EXCEPT //- /
/CORRECT /
/ANSWERS(S)✔✔Exist /
/for /
/profit /
/(FBS /
/is //
a/
/non /
/profit /
/entity, /
/it //is //incorporated, //without //capital //stock, //and //exists //for //the //benefit //of //its //members)
What /
/kind /
/of /
/life /
/insurance /
/policy /
/issued /
/by //
,a/
/mutual /
/insurer /
/provides //
a/
/return /
/of /
/divisible /
/surplus? //- /
/CORRECT /
/ANSWERS(S)✔✔participating /
/life /
/insurance /
/policy /
/(A /
/mutual //insurer //issues //life //insurance //policies //that //provide //a //return //of //divisible //surplus.)
An /
/insurer's /
/ability /
/to /
/make /
/unpredictable //payouts //to //policyowners //is //called //- //CORRECT //ANSWERS(S)✔✔liquidity
An /
/insurer's /
/claim /
/settlement /
/practices //are //regulated //by //the //- //CORRECT //ANSWERS(S)✔✔State //insurance //departments
A/
/nonparticipating /
/company //is //sometimes //called //a //- //CORRECT //ANSWERS(S)✔✔stock //insurer
, Which //of //the //following //is //not //considered //advertising?
A.) //a //rating //from //a //rating //service //company //such //as //A.M. //best
B.) //an //illustration
C.) //A //sales //presentation
D.)Direct /
/mailing /
/from /
/an /
/agency //- /
/CORRECT //ANSWERS(S)✔✔A.) //a //rating //from //a //rating //service //company //such //as //A.M. //best
A //nonparticipating //policy //will //- //CORRECT //ANSWERS(S)✔✔not //pay //dividends
Insurance //represents //the //process //of //risk //- //CORRECT //ANSWERS(S)✔✔transference
A/
/______ /
/is /
/considered /
/to /
/be /
/an /
/event /
/or /
/condition /
/that //increases //the //probability //of //an //insureds //loss? //- //CORRECT //ANSWERS(S)✔✔Hazard
Insurance /
/companies /
/determine /
/risk /
Life
/ /
Insurance
/ /
Exam Questions With Correct Answers
/ // // // //
Karen /
/is //
a/
/producer /
/who /
/has //obtained //personal //information //about //a //client //without //having //a //legitimate //reason //to
//do //so. //Under //the //McCarran-
Ferguson /
/Act, /
/what /
/is /
/the /
/minimum /
/penalty //for //this? //- //CORRECT //ANSWERS(S)✔✔$10,000 //or //up //to //one //year //in //jail
A/
/type /
/of /
/insurer /
/that //is //owned //by //its //policyowners //is //called //- //CORRECT //ANSWERS(S)✔✔Mutual //insurer
What /
/is /
/considered /
,/to /
/be /
/the /
/primary /
/reason //for //buying //life //insurance? //- //CORRECT //ANSWERS(S)✔✔Provide //death //benefits
Fraternal /
/Benefit /
/Society /
/has /
/each /
/of /
/the /
/following /
/characteristics /
/EXCEPT //- /
/CORRECT /
/ANSWERS(S)✔✔Exist /
/for /
/profit /
/(FBS /
/is //
a/
/non /
/profit /
/entity, /
/it //is //incorporated, //without //capital //stock, //and //exists //for //the //benefit //of //its //members)
What /
/kind /
/of /
/life /
/insurance /
/policy /
/issued /
/by //
,a/
/mutual /
/insurer /
/provides //
a/
/return /
/of /
/divisible /
/surplus? //- /
/CORRECT /
/ANSWERS(S)✔✔participating /
/life /
/insurance /
/policy /
/(A /
/mutual //insurer //issues //life //insurance //policies //that //provide //a //return //of //divisible //surplus.)
An /
/insurer's /
/ability /
/to /
/make /
/unpredictable //payouts //to //policyowners //is //called //- //CORRECT //ANSWERS(S)✔✔liquidity
An /
/insurer's /
/claim /
/settlement /
/practices //are //regulated //by //the //- //CORRECT //ANSWERS(S)✔✔State //insurance //departments
A/
/nonparticipating /
/company //is //sometimes //called //a //- //CORRECT //ANSWERS(S)✔✔stock //insurer
, Which //of //the //following //is //not //considered //advertising?
A.) //a //rating //from //a //rating //service //company //such //as //A.M. //best
B.) //an //illustration
C.) //A //sales //presentation
D.)Direct /
/mailing /
/from /
/an /
/agency //- /
/CORRECT //ANSWERS(S)✔✔A.) //a //rating //from //a //rating //service //company //such //as //A.M. //best
A //nonparticipating //policy //will //- //CORRECT //ANSWERS(S)✔✔not //pay //dividends
Insurance //represents //the //process //of //risk //- //CORRECT //ANSWERS(S)✔✔transference
A/
/______ /
/is /
/considered /
/to /
/be /
/an /
/event /
/or /
/condition /
/that //increases //the //probability //of //an //insureds //loss? //- //CORRECT //ANSWERS(S)✔✔Hazard
Insurance /
/companies /
/determine /
/risk /
