Question 1

Which of the following circumstances may be grounds for suspending an insurance license?

Options :

A : failure to follow insurer's underwriting rules

B : conviction of a summary offense

C : conviction of a felony

D : failure to maintain records for 5 years

Answer: C

Question 2

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 3

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 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 may NOT withdraw funds from a premium trust account to

Options :

A : pay premium to insurers.

B : pay claims to an insured.

C : return deposits to insureds.

D : return premiums to an insured.

Answer: B