Free Life Insurance Basics Practice Questions
Pennsylvania Life exam (series 16-01) — 147 practice questions.
Subtopics: Viatical settlements, Viatical disclosure, Illustrations, Policy delivery date, Group conversion, Insurable interest, Stranger-originated life insurance, Simultaneous death, No surviving beneficiary, Backdating, Life line of authority, Variable products, Insurable interest definition, Employer-owned life, Charitable ownership, Transfer of policy, Altering applications, Financial planner titles, Financial planning fees, Surrender comparison index, Cost comparison, Disclosure exemptions, Viatical rescission, Viatical broker duty, Viatical notice to insurer, Viatical disclosures, Guaranty life limits, Senior advertising, Insurable interest parties, Personal uses, Liquidity, Human life value, Needs approach, Buy-sell funding, Key person, Term vs permanent, Participating policies, Separate account, Variable products licensing, Premium factors, Mortality, Interest assumption, Premium mode, Advertising, Field underwriting, Application accuracy, Sources of underwriting, Risk classification, Substandard risk, Effective date, Statement of good health, MIB, Unfair discrimination underwriting, Group vs individual, Warranties vs representations, Disclosure statement, Estate conservation, Executive compensation, Expense factor, Declined risk, Net amount at risk, Legal reserve, CSO mortality table, Level premium funding, Cash value accumulation, Endowment maturity, Free look period, Policy replacement rules, Twisting, Churning, Rebating, Defamation, Binding receipt, Insuring clause, Consideration clause, Owner vs insured, Suitability, Sales illustration, Producer appointment, Paramedical exam, Inspection report, Nonmedical limit, Split-dollar plan, Section 162 executive bonus, Dependency period need, Social Security blackout period, Capital retention approach, Final expense need, Insurance age, Flat extra premium, Postponed risk, Agent's report, Policy summary, Material misrepresentation, Estate creation, Cash accumulation, Charitable giving, Buy-sell cross purchase, Buy-sell entity purchase, Cross purchase count, Key person beneficiary, Deferred compensation, Split dollar collateral assignment, Executive bonus taxation, Business overhead uses, Information for needs analysis, Group vs individual class, Nonparticipating policy, Fixed vs variable, Variable minimum death benefit, Gross vs net premium, Modal factors, Mortality table use, Gender and mortality, Producer delivery duties, Constructive delivery, Rated policy delivery, Conditional receipt insurability, No premium with application, Application signatures, Application corrections, Insurable interest third party, Self insurable interest, Attending physician statement, MIB adverse decisions, MIB pre-notice, HIV testing consent, Underwriting prohibited factor, Rated policy, Standard risk, Prescription database, Social Security fully insured, Currently insured, Survivor benefits children, Spouse caring for child, Blackout period end, Lump-sum death benefit, Full retirement age, Social Security disability, Social Security as offset, Producer report purpose
Read the Life Insurance Basics study guide
Sample questions & answers
1. In a viatical or life settlement, the policyowner:
Sells the existing life policy to a third party for less than the death benefit
A viatical/life settlement is the sale of an existing policy to a third party for a lump sum less than the face amount.
2. Pennsylvania viatical settlement rules primarily require:
Disclosures to consumers about the transaction and its consequences
PA requires disclosures to consumers, including alternatives and tax and benefit consequences of a settlement.
3. A life insurance sales illustration that shows nonguaranteed values must:
Clearly distinguish guaranteed from nonguaranteed elements
Illustration rules require that guaranteed and nonguaranteed (projected) values be clearly labeled to avoid deception.
4. For purposes of starting the free-look period, when a Pennsylvania insurer mails an individual life policy to the owner, the policy is considered delivered on:
The date of mailing
Delivery is the mailing date for mailed policies, the date of hand delivery by a representative or the date of compliant electronic transmission; the insurer bears the burden of proving delivery.
Practice: Life Insurance Basics
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
