PA LIFE INSURANCE EXAM Actual QUESTIONs with Verified Answers, 100% Guarantee Pass
QUESTION 1: An immediate annuity has been purchased
with a single premium. When does the annuitant typically begin receiving benefit payments?
CORRECT ANSWER: 1 month
QUESTION 2: An insurer will accept a premium from the
insured and continue the coverage in full force as though it was NOT late during which time period?Incontestable period Probation period Reinstatement period Grace period
CORRECT ANSWER: Grace period
The grace period is the amount of time an insurer continues coverage in full force and will accept the premium from the insured as though it was NOT late.
QUESTION 3: A little insurance producer licensed in the
commonwealth of PA is authorized to
CORRECT ANSWER: Solicit, Receive and forward
applications to insurers
QUESTION 4: Upon policy delivery, which of the following
must a producer have an applicant sign if no initial premium was collected with the life insurance application?
CORRECT ANSWER: A good health statement
QUESTION 5: Which contract element is insurable interest a
component of?
CORRECT ANSWER: legal purpose
QUESTION 6: All of these are common exclusions to a life
insurance policy EXCEPT
CORRECT ANSWER: accidental death
QUESTION 7: An insurer's ability to make unpredictable
payouts to policyowners is called
CORRECT ANSWER: liquidity
QUESTION 8: A policy owner may exercise which of these
dividend options that uses the dividend to pay all or part of the next premium due
CORRECT ANSWER: Reduction of Premium Dividend
Option
QUESTION 9: When collecting insurance premiums from a
client, a producer must
CORRECT ANSWER: forward premiums to the insurer on
a timely basis
QUESTION 10: Jonas is a whole life insurance policyowner
and would like to add coverage for his two children. Which of the following products would allow him to accomplish this?
CORRECT ANSWER: Child term rider
QUESTION 11: Shirley has a $500,000 10-year non-
renewable level term life policy. If she dies 15 years after the
policy's inception date, how much will her beneficiary receive?
CORRECT ANSWER: nothing
QUESTION 12: A resident produces license requires each of
the following EXCEPT
CORRECT ANSWER: Insurers appointment
QUESTION 13: What is the automatic continuance of
insurance coverage referred to act
CORRECT ANSWER: renewal
QUESTION 14: Julie has a $100,000 30-year mortgage on
her new home. What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period?
CORRECT ANSWER: Decreasing term insurance
QUESTION 15: Under a Modified Endowment Contract,
what are the likely tax consequences?
