PLAHI - Pennsylvania Life Accident and Health Insurance Exam

Question 21: A Montgomery County producer represents four insurers and keeps all collected premium in one fiduciary trust account rather than opening a separate account for each of the four companies. Which of the following BEST describes whether Pennsylvania law permits that arrangement?

Permitted if each insurer's funds stay ascertainable

Prohibited without a separate account per insurer

Permitted only for property insurers

Prohibited unless the producer posts a bond

Question 22: To close a sale, a producer in Chester offers to pay the first month of premium out of her own commission for any applicant who signs during a promotional week. Which of the following prohibited practices does that offer represent?

Twisting

Defamation

Rebating

Boycott

Question 23: A producer tells a longtime policyholder that his current life contract is worthless and shows an incomplete comparison to persuade him to surrender it and buy from another insurer. Which of the following names that specific prohibited practice?

Rebating

Misappropriation of funds

Unfair discrimination

Twisting

Question 24: A Pennsylvania insurer charges two life applicants of the same class and equal expectation of life different premium rates, and the only difference between them is marital status. Which of the following unfair practices does that rating decision represent?

Unfair discrimination

False advertising

Coercion

Improper claim denial

Question 25: A producer in State College begins writing business as an agent for a new insurer, though the company has not yet filed anything with the Insurance Department about him. Which of the following does Pennsylvania require before he may act as that insurer's agent?

A separate line of authority examination

Appointment by that insurer

A surety bond filed with the Department

Written consent from each applicant

Question 26: An insurer terminates a producer's appointment because the producer violated the licensing article. Company counsel asks how quickly the Insurance Department must be told about a termination made for one of the statutory causes. Which of the following states that deadline?

Within five business days

Within ninety days

Only at the next annual filing

Within thirty days of the effective date

Question 27: After notifying the Department that it terminated a producer for cause, an insurer must send the producer a copy of that notification and allow a response. Which of the following pairs correctly states the copy deadline and the producer's comment window?

Fifteen days to send, thirty to comment

Thirty days to send, fifteen to comment

Ten days to send, ten to comment

No copy required, no comment permitted

Question 28: A candidate signs an applicant's name to a life insurance application without permission, and a separate licensee is caught using hidden notes during a state licensing examination. Which of the following describes how Pennsylvania classifies both of those acts?

Lawful but discourteous conduct

Prohibited acts under the licensing article

Matters left to insurer discipline

Violations only if a loss results

Question 29: A producer tells prospects that a participating whole life contract guarantees a specific dividend every year and that the illustrated figures cannot change. The statements are untrue. Which of the following unfair practices has the producer committed under Pennsylvania law?

Rebating

Defamation

Misrepresentation of policy benefits

Failure to maintain complaint records

Question 30: A producer circulates a newsletter falsely claiming that a competing insurer is nearly insolvent and cannot pay claims, intending to move that insurer's policyholders to her own carrier. Which of the following unfair practices does the newsletter represent?

Twisting

Unfair discrimination

Boycott

Defamation

Question 31: Several producers in a Lehigh County market agree among themselves that none of them will place business with a new insurer entering the area, hoping to drive the newcomer out. Which of the following unfair practices does their agreement represent?

Boycott, coercion, or intimidation

Misrepresentation

Rebating

Twisting

Question 32: A Pennsylvania insurer is asked during a market conduct review to produce its record of consumer complaints, classified by line of insurance and showing disposition and processing time. Which of the following states how far back that record must reach?

One year

Two years

Four years

Ten years

Question 33: After a hearing, the Commissioner finds that a Pennsylvania insurer committed several unfair practices that it knew or reasonably should have known were violations. Which of the following states the per-violation ceiling and the aggregate cap that applies over any six-month span?

One thousand dollars each; ten thousand aggregate

Five thousand dollars each; fifty thousand aggregate

Ten thousand dollars each; no aggregate cap

Five hundred dollars each; five thousand aggregate

Question 34: A beneficiary in Johnstown mails a notice of claim to a life insurer and hears nothing at all for three weeks. Which of the following states the period Pennsylvania regulations allow an insurer to acknowledge receipt of a notification of claim?

Thirty calendar days

Two business days

Sixty calendar days

Ten working days

Question 35: An insurer receives properly executed proofs of loss on a first-party claim from an insured in Erie and begins reviewing them. Which of the following states the period within which Pennsylvania requires the insurer to accept or deny that claim?

Fifteen working days after receiving proofs

Ninety days after receiving proofs

Six months after the loss occurs

Whenever the investigation happens to conclude

Question 36: A Pennsylvania insurer is preparing new application forms and claim forms for its individual health line, and compliance staff review the required language. Which of the following must appear on both of those documents under the Commonwealth's insurance fraud statute?

The producer's commission percentage

The insurer's most recent financial rating

A fraud warning notice

A list of the Commissioner's powers

Question 37: A person previously convicted of a felony involving dishonesty and breach of trust wants to take a position with a Pennsylvania insurer. Which of the following describes the federal requirement that governs whether she may engage in the business of insurance?

Nothing, once state licensing is granted

A ten-year automatic waiting period

Registration with the federal trade regulator

Written consent before engaging in the business

Question 38: An investor buys shares hoping the price rises, knowing that it may instead fall. A homeowner in Erie faces the chance that fire destroys the house, with no possibility of gain. Which of the following correctly classifies these two exposures?

Both are pure risks

Speculative risk and pure risk

Both are speculative risks

Pure risk and morale hazard

Question 39: An insured leaves oily rags piled beside a furnace, a second insured is simply careless about locking doors, and a third believes causing a loss to collect insurance is acceptable. Which of the following identifies the third insured's attitude?

Moral hazard

Physical hazard

Morale hazard

Speculative risk

Question 40: A Pennsylvania manufacturer installs a sprinkler system to limit fire damage, keeps a small deductible on every policy, and buys coverage for the balance. Which of the following pairs the sprinkler decision and the deductible decision with the correct methods?

Avoidance and transfer

Sharing and avoidance

Reduction and retention

Transfer and reduction

PLAHI Pennsylvania Life Accident and Health Insurance Exam - Set 1 - Part 2

Question 21: A Montgomery County producer represents four insurers and keeps all collected premium in one fiduciary trust account rather than opening a separate account for each of the four companies. Which of the following BEST describes whether Pennsylvania law permits that arrangement?

Question 22: To close a sale, a producer in Chester offers to pay the first month of premium out of her own commission for any applicant who signs during a promotional week. Which of the following prohibited practices does that offer represent?

Question 23: A producer tells a longtime policyholder that his current life contract is worthless and shows an incomplete comparison to persuade him to surrender it and buy from another insurer. Which of the following names that specific prohibited practice?

Question 24: A Pennsylvania insurer charges two life applicants of the same class and equal expectation of life different premium rates, and the only difference between them is marital status. Which of the following unfair practices does that rating decision represent?

Question 25: A producer in State College begins writing business as an agent for a new insurer, though the company has not yet filed anything with the Insurance Department about him. Which of the following does Pennsylvania require before he may act as that insurer's agent?

Question 26: An insurer terminates a producer's appointment because the producer violated the licensing article. Company counsel asks how quickly the Insurance Department must be told about a termination made for one of the statutory causes. Which of the following states that deadline?

Question 27: After notifying the Department that it terminated a producer for cause, an insurer must send the producer a copy of that notification and allow a response. Which of the following pairs correctly states the copy deadline and the producer's comment window?

Question 28: A candidate signs an applicant's name to a life insurance application without permission, and a separate licensee is caught using hidden notes during a state licensing examination. Which of the following describes how Pennsylvania classifies both of those acts?

Question 29: A producer tells prospects that a participating whole life contract guarantees a specific dividend every year and that the illustrated figures cannot change. The statements are untrue. Which of the following unfair practices has the producer committed under Pennsylvania law?

Question 30: A producer circulates a newsletter falsely claiming that a competing insurer is nearly insolvent and cannot pay claims, intending to move that insurer's policyholders to her own carrier. Which of the following unfair practices does the newsletter represent?

Question 31: Several producers in a Lehigh County market agree among themselves that none of them will place business with a new insurer entering the area, hoping to drive the newcomer out. Which of the following unfair practices does their agreement represent?

Question 32: A Pennsylvania insurer is asked during a market conduct review to produce its record of consumer complaints, classified by line of insurance and showing disposition and processing time. Which of the following states how far back that record must reach?

Question 33: After a hearing, the Commissioner finds that a Pennsylvania insurer committed several unfair practices that it knew or reasonably should have known were violations. Which of the following states the per-violation ceiling and the aggregate cap that applies over any six-month span?

Question 34: A beneficiary in Johnstown mails a notice of claim to a life insurer and hears nothing at all for three weeks. Which of the following states the period Pennsylvania regulations allow an insurer to acknowledge receipt of a notification of claim?

Question 35: An insurer receives properly executed proofs of loss on a first-party claim from an insured in Erie and begins reviewing them. Which of the following states the period within which Pennsylvania requires the insurer to accept or deny that claim?

Question 36: A Pennsylvania insurer is preparing new application forms and claim forms for its individual health line, and compliance staff review the required language. Which of the following must appear on both of those documents under the Commonwealth's insurance fraud statute?

Question 37: A person previously convicted of a felony involving dishonesty and breach of trust wants to take a position with a Pennsylvania insurer. Which of the following describes the federal requirement that governs whether she may engage in the business of insurance?

Question 38: An investor buys shares hoping the price rises, knowing that it may instead fall. A homeowner in Erie faces the chance that fire destroys the house, with no possibility of gain. Which of the following correctly classifies these two exposures?

Question 39: An insured leaves oily rags piled beside a furnace, a second insured is simply careless about locking doors, and a third believes causing a loss to collect insurance is acceptable. Which of the following identifies the third insured's attitude?

Question 40: A Pennsylvania manufacturer installs a sprinkler system to limit fire damage, keeps a small deductible on every policy, and buys coverage for the balance. Which of the following pairs the sprinkler decision and the deductible decision with the correct methods?

Don't Want to Study?