Question 1

An Insurer, in general business practice, fails to promptly provide a reasonable explanation for the denial of a

claim. This is considered to be

Options :

A : a contractual liability.

B : an unfair claim settlement practice.

C : a violation of the grace period provision.

D : a fraudulent insurance act.

Answer: B

Question 2

An insurance producer is appointed to transact insurance on behalf of

Options :

A : the Insurance Commissioner.

B : the Commonwealth of Pennsylvania.

C : the appointing insurer.

D : all insurers.

Answer: C

Question 3

What are the tax implications of an insured's health insurance costs if the insured is self employed with an S

corporation, has a net profit for the tax year, and is unmarried?

Options :

A : The insured can pay for 100% of health insurance costs with pre-tax income.

B : The insured can deduct 70% of all health insurance costs from his gross income.

C : The insured can deduct 100% of all health insurance costs from his gross income.

D : The insured can pay for 70% of health insurance costs with pre-tax income.

Answer: C

Question 4

Which is considered an expense factor in a life insurance premium?

Options :

A : policy loan interest

B : Interest from investments

C : commission

D : aggregate claim amounts

Answer: C

Question 5

When selling an insurance policy in Pennsylvania, the producer must do all of the following EXCEPT

Options :

A : submit premiums within the normal course of business.

B : emphasize the benefits of the Guaranty Association.

C : protect any non-public or personal information about the applicant

D : provide a notice of information practices to applicants.

Answer: B