PA Life Insurance Study Questions and Correct Answers

Lying about a material fact on an insurance application is considered: A. a misdemeanor. B. basis for the insurance company to void the contract. C. a felony. D. none of the above. B. basis for the insurance company to void the contract. Of the following, which describes the suicide clause in a life policy? A. States that suicide is excluded during the insured's lifetime. B. States that suicide can not be excluded. C. States that the insurance company will not pay any death benefit if the insured commits suicide during the first two policy years. D. States that the insurance company will refund any premiums paid if the insured commits suicide after the first two policy years. C. States that the insurance company will not pay any death benefit if the insured commits suicide during the first two policy years. Insurers may limit the period of time that an insured can exercise the conversion privilege on a convertible term policy. This conversion period: A. is limited to five years after policy issue. B. must not last past the insureds age of 60. C. varies among the different insurance companies. D. is extended indefinitely. C. varies among the different insurance companies. With a Variable life policy: A. premiums are flexible and can be changed to suit the needs of the insured. B. death benefits will vary according to the performance of the separate account; however, death benefits will not fall below a guaranteed minimum amount. C. the death benefit is fixed; however, the cash values will vary. D. the cash values are fixed; however, the death benefit will vary. B. death benefits will vary according to the performance of the separate account; however, death benefits will not fall below a guaranteed minimum amount. What is the type of annuity that guarantees to pay an income totaling an amount at least equal to the purchase price of the contract? A. straight life annuity. B. life annuity with period certain. C. refund life annuity. D. single-premium immediate annuity. C. refund life annuity.