Questions and answers Seen on the
Pennsylvania Insurance State exam
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? - ANSWER>>Child Term
Rider
Which of the following annuity payout options makes no additional payments regardless of
when the annuitant dies? - ANSWER>>Life only
People with higher loss exposure have the tendency to purchase insurance more often than
those at average risk. This is called - ANSWER>>Adverse selection
All of the following are elements of an insurance policy EXCEPT - ANSWER>>Claims forms
A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific
age is called a(n) - ANSWER>>Payor
According to the Health Insurance Portability and Accountability Act (HIPAA), when can a group
health policy renewal be denied? - ANSWER>>Rules have been violated
Sharon is the policyowner of a $50,000 life insurance policy. Her son, Mike, is the beneficiary. If
Sharon MUST obtain Mike's signature in order to change the beneficiary, what kind of
beneficiary designation is this? - ANSWER>>Irrevocable
Someone needing custodial care at home would require which type of coverage? -
ANSWER>>Long term care
A professional liability for which producers can be sued for mistakes of putting a policy into
effect is called - ANSWER>>Errors and omissions
The branch of dentistry which deals with the replacement of missing parts is called -
ANSWER>>Prosthodontics
Within how many days must a rollover be completed in order to avoid being taxed as current
income? - ANSWER>>60
,When collecting insurance premiums from a client, a producer MUST - ANSWER>>Forward
premiums to the insurer on a timely basis
Preferred risk policies with reduced premiums are issued by insurance companies because the
insured has - ANSWER>>Better than average mortality or morbidity experience
A life insurance policy that has premiums fully paid up within a stated time period is called -
ANSWER>>Limited payment insurance
Which of these is NOT considered to be a purpose of an annuity? - ANSWER>>Annuities are not
intended to create an estate
Richard owns an insurance policy that is renewable only at the option of the insurance
company. His policy is considered to be - ANSWER>>Optionally renewable
Which of these factors is NOT taken into account when determining an applicant's life
insurance needs? - ANSWER>>Automobile
Which of these retirement plans do NOT qualify for a federal income tax deduction? -
ANSWER>>Roth IRA
Written notice for a health claim must be given to the insurer ___ days after the occurrence of
the loss. - ANSWER>>20
Under a non-qualified annuity, interest is taxed after the - ANSWER>>Exclusion ratio has been
calculated
Tim is covered under a group plan and would like to change his group coverage to an individual
policy with the same insurer because of employment termination. Which of these describes the
change that will take place? - ANSWER>>Conversion
Which of these is NOT considered to be a common life insurance nonforfeiture option? -
ANSWER>>Life income annuity
The two major actions required for a policyholder to comply with the Reinstatement Clause are
- ANSWER>>Provide evidence of insurability, pay past due premiums
, Legal purpose is a term used in contract law meaning - ANSWER>>There must be legal reasons
for entering a contract
The typical long-term care insurance policy is designed to provide a minimum of __ year(s) of
coverage. - ANSWER>>1 year
A clause that allows an insurer the right to terminate coverage at any anniversary date is called
a(n) - ANSWER>>Optional renewability clause
What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allow an
employee to do? - ANSWER>>in the event of employment termination, group health insurance
can be kept if the employee pays the premiums
Which clause defines total disability as being unable to perform the major duties of the
insured's regular occupation? - ANSWER>>Own occupation clause
When an insurance company consistently fails to provide reasonable explanations for the denial
of a claim, this is called a(n) - ANSWER>>Unfair claim settlement
Which type of annuity guarantees a stated number of income payments, whether or not the
annuitant is still alive to receive them? - ANSWER>>Life annuity certain
Continuous 24-hour care provided by licensed medical professionals under the direct
supervision of a physician is called - ANSWER>>Skilled nursing care
A Medicare Supplement Policy is - ANSWER>>Designed to fill the gaps of part A and B medicare
Tom has a home health care benefit and is confined to his home. Which of these benefits is
NOT typically covered? - ANSWER>>Full time nursing care
What would be an expense factor in an insurance program? - ANSWER>>Mortality cost
How are premiums paid by the insured for personally owned disability income insurance
treated for tax purposes? - ANSWER>>Not tax deductible
All of the following are examples of pure risk EXCEPT - ANSWER>>Losing money at a casino
Pennsylvania Insurance State exam
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? - ANSWER>>Child Term
Rider
Which of the following annuity payout options makes no additional payments regardless of
when the annuitant dies? - ANSWER>>Life only
People with higher loss exposure have the tendency to purchase insurance more often than
those at average risk. This is called - ANSWER>>Adverse selection
All of the following are elements of an insurance policy EXCEPT - ANSWER>>Claims forms
A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific
age is called a(n) - ANSWER>>Payor
According to the Health Insurance Portability and Accountability Act (HIPAA), when can a group
health policy renewal be denied? - ANSWER>>Rules have been violated
Sharon is the policyowner of a $50,000 life insurance policy. Her son, Mike, is the beneficiary. If
Sharon MUST obtain Mike's signature in order to change the beneficiary, what kind of
beneficiary designation is this? - ANSWER>>Irrevocable
Someone needing custodial care at home would require which type of coverage? -
ANSWER>>Long term care
A professional liability for which producers can be sued for mistakes of putting a policy into
effect is called - ANSWER>>Errors and omissions
The branch of dentistry which deals with the replacement of missing parts is called -
ANSWER>>Prosthodontics
Within how many days must a rollover be completed in order to avoid being taxed as current
income? - ANSWER>>60
,When collecting insurance premiums from a client, a producer MUST - ANSWER>>Forward
premiums to the insurer on a timely basis
Preferred risk policies with reduced premiums are issued by insurance companies because the
insured has - ANSWER>>Better than average mortality or morbidity experience
A life insurance policy that has premiums fully paid up within a stated time period is called -
ANSWER>>Limited payment insurance
Which of these is NOT considered to be a purpose of an annuity? - ANSWER>>Annuities are not
intended to create an estate
Richard owns an insurance policy that is renewable only at the option of the insurance
company. His policy is considered to be - ANSWER>>Optionally renewable
Which of these factors is NOT taken into account when determining an applicant's life
insurance needs? - ANSWER>>Automobile
Which of these retirement plans do NOT qualify for a federal income tax deduction? -
ANSWER>>Roth IRA
Written notice for a health claim must be given to the insurer ___ days after the occurrence of
the loss. - ANSWER>>20
Under a non-qualified annuity, interest is taxed after the - ANSWER>>Exclusion ratio has been
calculated
Tim is covered under a group plan and would like to change his group coverage to an individual
policy with the same insurer because of employment termination. Which of these describes the
change that will take place? - ANSWER>>Conversion
Which of these is NOT considered to be a common life insurance nonforfeiture option? -
ANSWER>>Life income annuity
The two major actions required for a policyholder to comply with the Reinstatement Clause are
- ANSWER>>Provide evidence of insurability, pay past due premiums
, Legal purpose is a term used in contract law meaning - ANSWER>>There must be legal reasons
for entering a contract
The typical long-term care insurance policy is designed to provide a minimum of __ year(s) of
coverage. - ANSWER>>1 year
A clause that allows an insurer the right to terminate coverage at any anniversary date is called
a(n) - ANSWER>>Optional renewability clause
What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allow an
employee to do? - ANSWER>>in the event of employment termination, group health insurance
can be kept if the employee pays the premiums
Which clause defines total disability as being unable to perform the major duties of the
insured's regular occupation? - ANSWER>>Own occupation clause
When an insurance company consistently fails to provide reasonable explanations for the denial
of a claim, this is called a(n) - ANSWER>>Unfair claim settlement
Which type of annuity guarantees a stated number of income payments, whether or not the
annuitant is still alive to receive them? - ANSWER>>Life annuity certain
Continuous 24-hour care provided by licensed medical professionals under the direct
supervision of a physician is called - ANSWER>>Skilled nursing care
A Medicare Supplement Policy is - ANSWER>>Designed to fill the gaps of part A and B medicare
Tom has a home health care benefit and is confined to his home. Which of these benefits is
NOT typically covered? - ANSWER>>Full time nursing care
What would be an expense factor in an insurance program? - ANSWER>>Mortality cost
How are premiums paid by the insured for personally owned disability income insurance
treated for tax purposes? - ANSWER>>Not tax deductible
All of the following are examples of pure risk EXCEPT - ANSWER>>Losing money at a casino
