FINAL EXAM PA LIFE, HEALTH AND
ACCIDENT EXAM QUESTIONS &
VERIFIED CORRECT ANSWERS
Which of these factors is NOT taken into consideration when determining the cost of a
long-term care policy? - CORRECT ANSWER Personal Income
What is the nonforfeiture value of an annuity before annuitization? - CORRECT
ANSWER All premiums paid, plus interest, minus any withdrawals and surrender
charges
In an employer sponsored contributory group disability income plan the employer pays
60% of the premium and each employee pays 40% of the premium. Any income
benefits paid are taxed to the employee at? - CORRECT ANSWER 60%
Premium mode is a term used to describe the? - CORRECT ANSWER Frequency of
the premium payment
A master contract and certificate of coverage can be found in which type of policy? -
CORRECT ANSWER Group
With a scheduled dental policy, how are covered expenses paid? - CORRECT
ANSWER Benefits are limited to a specific maximum dollar amount per procedure
All of the following are included as a part of a contract in the entire contract provision
EXPECT the? - CORRECT ANSWER Change made by the producer
A securities license is required for a life insurance producer to sell - CORRECT
ANSWER Variable life insurance
Under a disability income policy, which provision would be payable if the cause of an
injury is unexpected and accidental? - CORRECT ANSWER Accidental bodily injury
provision
Under a life insurance policy, what does the insuring clause state? - CORRECT
ANSWER The insures obligation to pay a death benefit upon an approved death claim
What type of disability would be less than total impairment and equal to permanent
impairment? - CORRECT ANSWER Permanent partial disability
, Which of these statements regarding the annuitant is CORRECT? - CORRECT
ANSWER The annuitants life expectancy determines the annuity payments
An insurer must furnish to a claimant forms for filing proof of loss within ___ days upon
receiving a notice of claim. - CORRECT ANSWER 15 days
A life insurance policy that is subject to a contract interest rate is referred to as -
CORRECT ANSWER Universal Life
Which settlement option involves having the proceeds remain with the insurer and
earnings paid on a monthly basis to the beneficiary? - CORRECT ANSWER Interest
only
Within how many days must a producer report to the commissioner any charges made
against them? - CORRECT ANSWER 30 days
Which of the following would be considered a possible applicant and contract
policyholder for group health benefits? - CORRECT ANSWER Employer
How are annuities given favorable tax treatment? - CORRECT ANSWER Gains are
taxed at distribution
The term which describes the fact that both parties of a contract may NOT receive the
same value is referred to as - CORRECT ANSWER Aleatory
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 ANSWER $10,000
The entire contract includes the actual policy and the - CORRECT ANSWER
Application
Which of these describes the result of a modified endowment contract that failed to
meet the seven pay test? - CORRECT ANSWER Pre Death distributions are typically
taxable
Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which
of these benefit options would he choose? - CORRECT ANSWER Guaranteed lifetime
withdrawal benefit
A permanent life insurance policy where the policy owner pays premiums for a specified
number of years is called an? - CORRECT ANSWER limited pay policy
The waiver of premium does NOT include which provision? - CORRECT ANSWER All
future premiums are waived if the insured recovers from the disability
ACCIDENT EXAM QUESTIONS &
VERIFIED CORRECT ANSWERS
Which of these factors is NOT taken into consideration when determining the cost of a
long-term care policy? - CORRECT ANSWER Personal Income
What is the nonforfeiture value of an annuity before annuitization? - CORRECT
ANSWER All premiums paid, plus interest, minus any withdrawals and surrender
charges
In an employer sponsored contributory group disability income plan the employer pays
60% of the premium and each employee pays 40% of the premium. Any income
benefits paid are taxed to the employee at? - CORRECT ANSWER 60%
Premium mode is a term used to describe the? - CORRECT ANSWER Frequency of
the premium payment
A master contract and certificate of coverage can be found in which type of policy? -
CORRECT ANSWER Group
With a scheduled dental policy, how are covered expenses paid? - CORRECT
ANSWER Benefits are limited to a specific maximum dollar amount per procedure
All of the following are included as a part of a contract in the entire contract provision
EXPECT the? - CORRECT ANSWER Change made by the producer
A securities license is required for a life insurance producer to sell - CORRECT
ANSWER Variable life insurance
Under a disability income policy, which provision would be payable if the cause of an
injury is unexpected and accidental? - CORRECT ANSWER Accidental bodily injury
provision
Under a life insurance policy, what does the insuring clause state? - CORRECT
ANSWER The insures obligation to pay a death benefit upon an approved death claim
What type of disability would be less than total impairment and equal to permanent
impairment? - CORRECT ANSWER Permanent partial disability
, Which of these statements regarding the annuitant is CORRECT? - CORRECT
ANSWER The annuitants life expectancy determines the annuity payments
An insurer must furnish to a claimant forms for filing proof of loss within ___ days upon
receiving a notice of claim. - CORRECT ANSWER 15 days
A life insurance policy that is subject to a contract interest rate is referred to as -
CORRECT ANSWER Universal Life
Which settlement option involves having the proceeds remain with the insurer and
earnings paid on a monthly basis to the beneficiary? - CORRECT ANSWER Interest
only
Within how many days must a producer report to the commissioner any charges made
against them? - CORRECT ANSWER 30 days
Which of the following would be considered a possible applicant and contract
policyholder for group health benefits? - CORRECT ANSWER Employer
How are annuities given favorable tax treatment? - CORRECT ANSWER Gains are
taxed at distribution
The term which describes the fact that both parties of a contract may NOT receive the
same value is referred to as - CORRECT ANSWER Aleatory
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 ANSWER $10,000
The entire contract includes the actual policy and the - CORRECT ANSWER
Application
Which of these describes the result of a modified endowment contract that failed to
meet the seven pay test? - CORRECT ANSWER Pre Death distributions are typically
taxable
Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which
of these benefit options would he choose? - CORRECT ANSWER Guaranteed lifetime
withdrawal benefit
A permanent life insurance policy where the policy owner pays premiums for a specified
number of years is called an? - CORRECT ANSWER limited pay policy
The waiver of premium does NOT include which provision? - CORRECT ANSWER All
future premiums are waived if the insured recovers from the disability
