PA LIFE INSURANCE EXAM 160 2026 FINAL
ASSESSMENT PAPER INSURANCE LAW AND
ETHICS COMPREHENSIVE QUESTIONS AND
ANSWERS VERIFIED A+
◉ What would a be an expense factor in an insurance program
Answer: mortality costs
◉ Which of the following is an annuity that is linked to a market
related index.. Answer: equity index annuity
◉ Variable life insurance & universal life insurance are similar.
Which of these are held exclusively by variable universal life
insurance.. Answer: Policyowner has the right to select the
investments which will provide the the greatest return
◉ An accelerated death benefit in PA must be at least what
percentage of the total death benefit.. Answer: 25%
◉ A producer's license CANNOT be revoked without Answer: a
hearing given to the producer
,◉ Mike has inherited his father's traditional IRA. As a beneficiary, he
will pay taxes on any money withdrawn Answer: income
◉ Signatures for an insurance application MUST be obtained by the
producer from all of the following sources except.. Answer:
Beneficiary
◉ What is the purpose for having an accelerated death benefit on a
life insurance policy.. Answer: It allows for cash advances to be paid
against the death if the insured becomes terminally ill
◉ Which premium payment frequencies is not typically available to
policyholders.. Answer: bi-weekly
◉ An example of risk sharing would be.. Answer: Doctors pooling
their money to cover malpractice exposures is an example of risk
sharing
◉ A licensee may only sell, solicit, & negotiate insurance contracts
on behalf of the... Answer: appointing insurer
◉ Who is responsible for assembling the policy form for insureds..
Answer: insurance carriers
, ◉ When soliciting insurance, a producer CANNOT.. Answer:
emphasize guaranty association benefits
◉ Andy annuitant dies before the annuity start date.. Answer:
premiums paid plus interest earned is returned to the beneficiary
◉ Describe a conditional insurance contract.. Answer: a contract
that requires certain conditions or acts by the insured individual
◉ All of the following are unfair claims practices.. Answer: - refusing
to pay claims without reasonable investigation
- failing to promptly provide reasonable explanation of any certain
denials
- offering low amounts to force insureds to institute litigation
◉ A life insurance producer licensed in PA is authorized to.. Answer:
solicit, receive, & forward applications to the insurer
◉ 3 brothers who have a $100 K first to die joint life policy covering
all 3 of their lives. If 1 brother dies first, the policy proceeds..
Answer: will no longer provide insurance protection
◉ All of these are standard exclusions found in a life insurance
policy.. Answer: - hazardous occupations
ASSESSMENT PAPER INSURANCE LAW AND
ETHICS COMPREHENSIVE QUESTIONS AND
ANSWERS VERIFIED A+
◉ What would a be an expense factor in an insurance program
Answer: mortality costs
◉ Which of the following is an annuity that is linked to a market
related index.. Answer: equity index annuity
◉ Variable life insurance & universal life insurance are similar.
Which of these are held exclusively by variable universal life
insurance.. Answer: Policyowner has the right to select the
investments which will provide the the greatest return
◉ An accelerated death benefit in PA must be at least what
percentage of the total death benefit.. Answer: 25%
◉ A producer's license CANNOT be revoked without Answer: a
hearing given to the producer
,◉ Mike has inherited his father's traditional IRA. As a beneficiary, he
will pay taxes on any money withdrawn Answer: income
◉ Signatures for an insurance application MUST be obtained by the
producer from all of the following sources except.. Answer:
Beneficiary
◉ What is the purpose for having an accelerated death benefit on a
life insurance policy.. Answer: It allows for cash advances to be paid
against the death if the insured becomes terminally ill
◉ Which premium payment frequencies is not typically available to
policyholders.. Answer: bi-weekly
◉ An example of risk sharing would be.. Answer: Doctors pooling
their money to cover malpractice exposures is an example of risk
sharing
◉ A licensee may only sell, solicit, & negotiate insurance contracts
on behalf of the... Answer: appointing insurer
◉ Who is responsible for assembling the policy form for insureds..
Answer: insurance carriers
, ◉ When soliciting insurance, a producer CANNOT.. Answer:
emphasize guaranty association benefits
◉ Andy annuitant dies before the annuity start date.. Answer:
premiums paid plus interest earned is returned to the beneficiary
◉ Describe a conditional insurance contract.. Answer: a contract
that requires certain conditions or acts by the insured individual
◉ All of the following are unfair claims practices.. Answer: - refusing
to pay claims without reasonable investigation
- failing to promptly provide reasonable explanation of any certain
denials
- offering low amounts to force insureds to institute litigation
◉ A life insurance producer licensed in PA is authorized to.. Answer:
solicit, receive, & forward applications to the insurer
◉ 3 brothers who have a $100 K first to die joint life policy covering
all 3 of their lives. If 1 brother dies first, the policy proceeds..
Answer: will no longer provide insurance protection
◉ All of these are standard exclusions found in a life insurance
policy.. Answer: - hazardous occupations
