Final Exam - Pennsylvania Life Only Questions and Correct Answers

Which contract element is insurable interest a component of? Legal purpose When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach? The family's financial objectives if the income earner were to die or become disabled Agreements made by terminally ill persons to sell their life insurance policies at a discount in order to pay medical expenses are called Viatical settlements ______ is NOT an element of a valid contract. Countersignature A licensee can have his/her license denied or revoked by the Commissioner if the licensee has committed insurance-related fraud or dishonesty When a producer offers something of value in return for the purchase of an insurance policy, which prohibited sales practice has been committed? Inducement The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Certificate of coverage and benefits What is an insurance policy's grace period? Period of time after the premium is due but the policy remains in force Which of these factors help determine an insured's life insurance premium? avocation (hobby) If an insured's age on a life insurance policy has been misstated, what is the insurer's liability if the insured dies? A prorated death benefit based on the amount of insurance the insured's premiums would have been if purchased at the correct age Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which phase is this annuity in? Accumulation period What is the name of the provision which states that a copy of the application must be attached to the policy when issued? Entire Contract Which type of life insurance is normally associated with a Payor