PA Insurance Exam Practice Questions and Complete Solutions

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