Pennsylvania Life & Health Insurance Exam Practice Questions Review

These flashcards cover key concepts, definitions, and important regulations related to life and health insurance, as presented in the Pennsylvania Life & Health Insurance Exam Practice Questions.

Which of the following is NOT a business use of life insurance?

Workers Compensation

Who receives dividends in a mutual insurer?

Policyholders

A pure life annuity pays income for how long?

Only for the life of the annuitant

False statements by an insurance agent are considered what if intentional and material?

Fraudulent

What is the purpose of the rehabilitation benefit in disability insurance?

To cover retraining expenses

Traditional IRA deductibility is based on what?

Owner’s income

Denying a claim without explanation violates what?

Unfair claims practices regulations

In the case of a $2,500 loss with a $500 deductible and 80/20 coinsurance, how much does the insured pay?

$900

What type of plan pays providers a set fee regardless of service?

Prepaid plan

Which statement about Juvenile Life is INCORRECT?

Purchased by a minor

Which violation does NOT result in imprisonment?

Failing to report a criminal prosecution

What is charging unequal rates for the same risk class called?

Discrimination

What limits how much can be borrowed from a whole-life policy?

Cash value

After a viatical settlement, the provider must notify the insurer within how many days?

30 days

All are true about fixed-amount installments EXCEPT:

Payments stop when the annuitant dies

Who represents the insurer, not the claimant?

Producer

What is circulating deceptive sales material considered?

False advertising

What unique information source do investigative consumer reports use?

Associates, friends, and neighbors provide data

What rider increases disability benefits for inflation?

Cost of Living (COLA)

How are life-insurance death proceeds generally taxed?

Not taxed as income

An insurer holding a Certificate of Authority is what?

Authorized insurer

What does a 31-day grace period imply?

The policy will not lapse for 31 days if the premium is not paid

What is another name for a Combination Dental Plan?

NOT the Superimposed Plan

What type of annuity limits payments to a fixed period?

Annuity certain

What does the loss of both eyes under AD&D; pay?

Principal sum

Which is NOT a use of annuities?

Estate creation

Which is NOT a personal use of life insurance?

Buy-sell agreement

A disability income benefit increased yearly due to inflation indicates what?

COLA rider

What does Universal Life Option B provide?

Face amount plus cash value (increasing death benefit)

Who is responsible for reporting legal action?

The licensee

What must an insurer offering Medicare supplements offer?

Plan A

To transact insurance legally, what must an insurer have?

Certificate of Authority

Which is NOT unfair discrimination?

Discriminating based on habits or lifestyle

What does duplicate benefits under two health policies cause?

Overinsurance

What is an example of a limited-pay life policy?

Life Paid-up at Age 65

What provision allows pre-treatment claim submission?

Prospective Review

Which is NOT covered by Medicare?

Cosmetic surgery

What is the difference between group and individual health insurance?

Group usually doesn't require medical exams

What is dishonesty an example of?

Moral hazard

What does fiduciary responsibility mean?

Handling insurer funds in a trust capacity

In replacement, what must be considered EXCEPT?

Assets

What is a COBRA qualifying event?

Termination due to downsizing

What rider adjusts the face amount using CPI?

Cost of Living Rider

What does the National Do Not Call Registry regulate?

Telemarketers

When must producers notify applicants of credit report use?

At the time of application

What does limiting coverage by marital status mean?

Never legal

What is a claim based on?

Loss

What is the ACA special enrollment period duration?

60 days

Notice to an agent equals notice to whom?

The insurer

What does a fixed annuity with 2.5% guaranteed but 2% earnings pay?

2.5%