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Free Life Insurance Basics Practice Questions

Pennsylvania Life exam (series 16-01) — 40 practice questions.

Subtopics: Viatical settlements, Viatical disclosure, Illustrations, Delivery receipt, Group conversion, Insurable interest, 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, Backdating, MIB, Unfair discrimination underwriting, Group vs individual, Warranties vs representations, Disclosure statement, Estate conservation, Executive compensation, Expense factor, Declined risk, Surrender comparison index

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. Pennsylvania may require the producer to obtain, at policy delivery, a:

Delivery receipt acknowledging the insured received the policy

A delivery receipt documents the date the policy was delivered, which can start the free-look period.

All Life topics

Practice: Life Insurance Basics

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

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 Pennsylvania Insurance Department and the exam administrator before relying on it.