Question 1

She has a $200,000 whole life policy with a $50,000 cash value. She wishes to borrow $30,000 for the

purchase of a new van. Which of the following is TRUE in this situation?

Options :

A : Loans can only be taken for hardship situations.

B : Whole life policies do not have any loan provisions.

C : This type of loan is interest free.

D : If the loan is not repaid, the net death will be reduced

Answer: D

Question 2

The premium mode defines the

Options :

A : frequency of the premium payment.

B : premium amount

C : premium limit. I

D : method of premium payment (cash or credit).

Answer: A

Question 3

In Pennsylvania, the Time Limit on Certain Defenses Provision provides that no statement can be used to

deny a claim on an accident and health policy after

Options :

A : 7 years.

B : 3 years.

C : 5 years.

D : 1 year.

Answer: B

Question 4

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

Question 5

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