PA Insurance Exam Practice Questions with Complete Solutions

PA Insurance Exam Practice Questions with Complete Solutions 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? Child Term Rider A limited payment whole life policy provides Lifetime Protection Donald is the primary insured of a life insurance policy and adds a children's term rider. What is the advantage of adding this rider? Can be converted to permanent coverage without evidence of insurability A single premium cash value policy can be described as a policy that is paid up after only one payment Whole life policy with premiums paid up after 20 years What types of life insurance are normally used for key employee indemnification term, whole, and universal life insurance Level premium permanent insurance accumulates a reserve that will eventually equal the face amount of the policy A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called universal life Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested Variable Universal Policy Index whole life insurance contains a securities component that acts as a(n hedge against inflation survivorship life policy Which type of multiple protection policy pays on the death of the last person? a nonforfeiture option can be used to increase the death benefit All of these are valid options for an Adjustable Life Policy EXCEP Variable life insurance A securities license is required for a life insurance producer to sell Term insurance is appropriate for someone who Seeks temporary protection and lower premium When a decreasing term policy is purchased, it contains a decreasing death benefit and level premiums Which of these is NOT subject to income taxation under a Modified Endowment Contract (MEC)? Death benefit