PLAHI Pennsylvania Life Accident and Health Insurance Exam - Set 3 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: A Pennsylvania saver buys a deferred annuity that credits a set interest rate for a term of years, and the contract states that an early surrender may adjust her value up or down depending on rates. Which of the following has she purchased?

An immediate annuity

A market value adjusted annuity

A variable annuity

A joint and survivor annuity

Question 42: A Pennsylvania claimant settles a personal injury case and directs that the money be used to purchase a contract paying her a guaranteed monthly income she cannot outlive. Which of the following uses of annuities does this illustrate?

Key person indemnification

Estate creation for her heirs

A lump-sum settlement converted to income

Funding a group life plan

Question 43: A Pennsylvania annuity owner withdraws a large portion of her deferred contract during the sixth year, and the insurer subtracts a declining charge that would have disappeared after year eight. Which of the following describes what the insurer applied?

A market value adjustment

A mortality and expense guarantee

A coinsurance requirement

A surrender charge during the surrender period

Question 44: A Pennsylvania producer recommends an annuity to a client in Reading and must satisfy the Commonwealth's best interest standard before the sale closes. Which of the following correctly lists the four obligations the producer has to meet in making that recommendation?

Care, disclosure, conflict of interest, documentation

Suitability, solvency, licensing, appointment

Advertising, replacement, delivery, filing

Consent, notice, waiting period, refund

Question 45: A Pennsylvania producer recommends that a client in Bethlehem exchange an existing annuity contract for a new one issued by another insurer. Which of the following must the producer consider about the client's exchange history under the Commonwealth's care obligation?

Any exchange in the prior twelve months

Any exchange within the preceding sixty months

Only exchanges made with the same insurer

Nothing, since exchange history is not relevant

Question 46: A newly licensed Pennsylvania producer holding a life line of authority wants to begin selling annuity contracts to retirees in Erie. Which of the following training requirements must she complete before or at the time she starts making those sales?

A one-time four credit annuity training course

An annual eight credit product course

A twenty-four hour ethics program

No training beyond the licensing examination

Question 47: A Pennsylvania beneficiary receives a life insurance death benefit as a single lump sum and asks her accountant how that payment will be treated on her return. Which of the following correctly describes the federal income tax result?

The entire amount is ordinary income

The death benefit is not taxable income

Only the premiums paid are excluded

Half the proceeds are taxable income

Question 48: A Pennsylvania policyowner funds a new permanent policy so heavily during its first seven years that the contract fails a federal premium test, and the classification cannot later be undone. Which of the following describes that contract now?

A term conversion

A participating policy

A viatical settlement

A modified endowment contract

Question 49: A Pennsylvania worker moves retirement money by having the funds sent directly from one custodian to another, never touching the money herself, and she wants to repeat the process more than once this year. Which of the following describes what she is doing?

A rollover, limited to one yearly

A hardship distribution subject to penalty

A transfer, with no limit on frequency

A required minimum distribution

Question 50: A Pennsylvania employee enrolled in a qualifying high deductible health plan opens an individually owned savings account, deducts her contributions on her return, and lets the unused balance carry forward year after year. Which of the following accounts has she opened?

A flexible spending arrangement

A health reimbursement arrangement

A modified endowment contract

A health savings account

Struggling With Exams?

Less Time Studying, More Time Living – Finish Your Degree Faster! Pay-After-you-Pass!

Get Exam Support