PA Life Practice Exam Questions and Answers from PSI

Obtaining consumer information reports under false pretenses is prosecutable by which of the following? 1. USA Patriot Act 2. Fair Credit Reporting Act 3. State laws where the applicant resides 4. Securities and Exchange Commission 2. Fair Credit Reporting Act All of the following are features of the spendthrift clause EXCEPT 1. proceeds are paid in some other way than a single lump sum. 2. proceeds are protected by the insurer from the beneficiary's creditors. 3. transfer of proceeds to creditors is prohibited. 4. the beneficiary may encumber the proceeds. 4. the beneficiary may encumber the proceeds. What procedure is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent do not recall the changes that were made in a completed application? 1. The applicant and possibly the agent initial any changes made. 2. The applicant and the agent sign a document that outlines changes made. 3. An arbitration agreement is signed at the time of the signing of the application. 4. All changes must be approved by the underwriter prior to the submission of the application. 1. The applicant and possibly the agent initial any changes made. All of the following are ownership rights EXCEPT 1. changing the beneficiary of the policy 2. borrowing funds against cash value 3. switching the policy from one insured to another 4. assigning all of the rights of the policy to another person 3. switching the policy from one insured to another Which policy type is backed by equity investments and allows the policyholder to adjust the death benefit? 1. term life 2. variable life 3. regular whole life 4. variable universal life 4. variable universal life The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to the policyowner UNLESS which of the following is true? 1. The policyowner has named an irrevocable beneficiary. 2. The policyowner has named a revocable beneficiary. 3. The policyowner deems the beneficiary unfit. 4. The insurer prohibits changes to beneficiaries. 1. The policyowner has named an irrevocable beneficiary. Which one of the following is particularly important for an insurance producer to explain to a client upon delivery of a life insurance policy? 1. the effective date 2. any exclusions 3. premium due dates 4. loan interest rates 2.