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Pennsylvania Producer's Examination for Life Insurance — Information & Free Practice

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Pennsylvania Producer's Examination for Life Insurance

Provider
PSI Services LLC
Format
Computer examination at a test center or remotely proctored
Exam questions
100 scored items
Time limit
120 minutes
Passing score
70%
Exam fee
$45
Examination outline
  • 1.0 Insurance Regulation (14%)
    • Licensing
    • Licensing > Process and types
    • Licensing > Process and types > Requirements (40 P.S. § 310.1, 310.3-310.14)
    • Licensing > Process and types > Resident/nonresident (40 P.S. § 310.3–310.5, 310.10)
    • Licensing > Process and types > Temporary license (40 P.S. § 310.9)
    • Licensing > Process and types > Managers and exclusive general producers (40 P.S. § 310.1, 310.31)
    • Licensing > Maintenance and duration
    • Licensing > Maintenance and duration > Change in contact information (40 P.S. § 310.11(19))
    • Licensing > Maintenance and duration > Renewal (40 P.S. § 310.8)
    • Licensing > Maintenance and duration > Duty to report administrative or criminal actions (40 P.S. § 310.78)
    • Licensing > Maintenance and duration > Fictitious names (40 P.S. § 310.7)
    • Licensing > Maintenance and duration > Continuing education (40 P.S. § 310.8(b), 310.6(a), 31 Pa. Code Ch. 39a)
    • Licensing > Maintenance and duration > Waiver due to military or extenuating circumstances (40 P.S. § 310.8)
    • Licensing > Disciplinary actions
    • Licensing > Disciplinary actions > License denial, nonrenewal, suspension, or revocation (40 P.S. § 310.91, 310.11)
    • Licensing > Disciplinary actions > Penalties and fines for violations (40 P.S. §§ 310.12, 310.41a, 310.91, 1171.11)
    • Licensing > Disciplinary actions > Cease and desist order (40 P.S. §§ 310.91, 1171.9)
    • Licensing > Disciplinary actions > Cease and desist order (40 P.S. §§ 310.91, 1171.9) > Civil
    • Licensing > Disciplinary actions > Cease and desist order (40 P.S. §§ 310.91, 1171.9) > Criminal
    • Licensing > Disciplinary actions > Cease and desist order (40 P.S. §§ 310.91, 1171.9) > Hearings
    • Licensing > Disciplinary actions > Consent agreement
    • State regulation
    • State regulation > Acts constituting insurance transactions
    • State regulation > Acts constituting insurance transactions > Negotiate, sell, solicit (40 P.S. §§ 310.1, 310.3, 310.8, 310.11)
    • State regulation > Commissioner's general duties and powers (40 P.S. §§ 310.2, 1171.7)
    • State regulation > Company regulation
    • State regulation > Company regulation > Certificate of authority (40 P.S. §§ 47, 47a, 420)
    • State regulation > Company regulation > Solvency (40 P.S. §§ 72, 112)
    • State regulation > Company regulation > Policy forms and rates (40 P.S. §§ 510, 776.1–776.7, 1181–1199, 1221–1238)
    • State regulation > Company regulation > Unfair claims settlement practices (40 P.S. § 1171.5(a)(10); 31 Pa. Code Ch. 146)
    • State regulation > Producer regulation
    • State regulation > Producer regulation > Fiduciary responsibility (40 P.S. § 310.96; 31 Pa. Code Ch. § 37.81)
    • State regulation > Producer regulation > Examination of books and records (40 P.S. § 323.3-4)
    • State regulation > Producer regulation > Producer disclosure requirements (40 P.S. § 310.71(b))
    • State regulation > Producer regulation > Commissions and fees (40 P.S. §§ 310.72–310.74)
    • State regulation > Producer regulation > Prohibited acts (40 P.S. § 310.11)
    • State regulation > Appointment procedures
    • State regulation > Appointment procedures > Producer appointment (40 P.S. § 310.71, 31 Pa Code 37.61)
    • State regulation > Appointment procedures > Appointment termination (40 P.S. § 310.71a)
    • State regulation > Unfair insurance practices (40 P.S. §§ 1171.1 1171.5)
    • State regulation > Unfair insurance practices (40 P.S. §§ 1171.1 1171.5) > Rebates and Inducements (40 P.S. §§ 310.45, 310.46, 1171.5(a)(8))
    • State regulation > Unfair insurance practices (40 P.S. §§ 1171.1 1171.5) > Misrepresentation (40 P.S. §§ 310.47–.48, 1171.5(a)(1),(2))
    • State regulation > Unfair insurance practices (40 P.S. §§ 1171.1 1171.5) > Twisting (40 P.S. §§ 473)
    • State regulation > Unfair insurance practices (40 P.S. §§ 1171.1 1171.5) > False advertising (40 P.S. § 1171.5; 31 Pa. Code Ch. 51)
    • State regulation > Unfair insurance practices (40 P.S. §§ 1171.1 1171.5) > Defamation (40 P.S. § 1171.5(a)(3); 31 Pa. Code Ch. 51)
    • State regulation > Unfair insurance practices (40 P.S. §§ 1171.1 1171.5) > Boycott, coercion or intimidation (40 P.S. § 1171.5(a)(4))
    • State regulation > Unfair insurance practices (40 P.S. §§ 1171.1 1171.5) > Misappropriation of funds (40 P.S. §§ 310.11(4), 310.42)
    • State regulation > Unfair insurance practices (40 P.S. §§ 1171.1 1171.5) > Unfair discrimination (40 P.S. § 1171.5; 31 Pa. Code § 145.4)
    • State regulation > Unfair insurance practices (40 P.S. §§ 1171.1 1171.5) > Replacement (40 P.S. § 625, 31 Pa Code Ch. 81)
    • State regulation > Privacy of consumer financial information (40 P.S. § 310.77(a); 31 Pa. Code §§ 146a.1–.44)
    • State regulation > Insurance fraud regulation (40 P.S. §§ 325.1–325.62; 18 Pa. C.S. § 4117)
    • Federal Regulation
    • Federal Regulation > Fair Credit Reporting Act
    • Federal Regulation > Fraud and False Statements (18 USC Sections 1033 and 1034)
    • Federal Regulation > Privacy (Gramm-Leach-Bliley)
    • Federal Regulation > National Do Not Call List (https://www.donotcall.gov/)
  • 2.0 General Insurance Concepts (10%)
    • Risk
    • Risk > Methods of Handling Risk (e.g., Avoidance, Retention, Sharing, Reduction, Transfer)
    • Risk > Elements of Insurable Risks
    • Risk > Definitions (e.g., Risk, Hazard, Peril, Loss)
    • Classifications of Insurers
    • Classifications of Insurers > Mutual, Stock
    • Classifications of Insurers > Admitted, Non-Admitted
    • Classifications of Insurers > Foreign, Domestic, Alien
    • Elements of a Contract
    • Elements of a Contract > Consideration
    • Elements of a Contract > Competent Parties
    • Elements of a Contract > Legal Purpose
    • Elements of a Contract > Offer
    • Elements of a Contract > Acceptance
    • Authority and Powers of Producers
    • Authority and Powers of Producers > Express
    • Authority and Powers of Producers > Implied
    • Authority and Powers of Producers > Apparent
    • Authority and Powers of Producers > The Law of Agency
    • Legal Interpretations Affecting Contracts
    • Legal Interpretations Affecting Contracts > Reasonable Expectations
    • Legal Interpretations Affecting Contracts > Indemnity
    • Legal Interpretations Affecting Contracts > Good Faith
    • Legal Interpretations Affecting Contracts > Fraud
    • Legal Interpretations Affecting Contracts > Warranties, Representations, Misrepresentations, and Concealment
  • 3.0 Life Insurance Basics (20%)
    • Insurable Interest (40 P.S. § 512)
    • Personal Uses of Life Insurance
    • Personal Uses of Life Insurance > Survivor Protection
    • Personal Uses of Life Insurance > Estate Creation
    • Personal Uses of Life Insurance > Liquidity
    • Personal Uses of Life Insurance > Estate Conservation
    • Personal Uses of Life Insurance > Asset Protection
    • Determining Amount of Personal Life Insurance
    • Determining Amount of Personal Life Insurance > Human Life Value Approach
    • Determining Amount of Personal Life Insurance > Needs Approach
    • Business Uses of Life Insurance
    • Business Uses of Life Insurance > Buy-Sell Funding
    • Business Uses of Life Insurance > Key Person
    • Business Uses of Life Insurance > Executive Compensation
    • Viatical and life settlements
    • Viatical and life settlements > Disclosure to consumers (40 P.S. § 626.7)
    • Viatical and life settlements > General rules (40 P.S. § 626.8)
    • Viatical and life settlements > Definitions (40 P.S. § 626.2)
    • Classes of life insurance policies
    • Classes of life insurance policies > Group versus individual
    • Classes of life insurance policies > Permanent versus term
    • Classes of life insurance policies > Participating versus nonparticipating
    • Classes of life insurance policies > Fixed versus variable life insurance
    • Classes of life insurance policies > General account versus separate account (40 P.S. § 506.2; 31 Pa. Code Ch. 82.41-.51)
    • Classes of life insurance policies > Regulation of variable life insurance (31 Pa. Code Ch. 82.1, .14, .81)
    • Factors in Premium Determination
    • Factors in Premium Determination > Mortality
    • Factors in Premium Determination > Interest
    • Factors in Premium Determination > Expense
    • Premium Frequency
    • Producer responsibilities
    • Producer responsibilities > Sales presentations
    • Producer responsibilities > Advertising (31 Pa. Code Ch. 51.1–.36, .42)
    • Producer responsibilities > Life and Health Insurance Guaranty Association (40 P.S. § 991.1717)
    • Producer responsibilities > Life insurance disclosure statement (31 Pa. Code Ch. 83)
    • Producer responsibilities > Illustrations (40 P.S. § 625.7–625.8)
    • Producer responsibilities > Life insurance surrender comparison index disclosure (31 Pa. Code Ch. 83.51–.57)
    • Field Underwriting
    • Field Underwriting > Application Procedures
    • Field Underwriting > Warranties and Representations
    • Policy Delivery
    • Policy Delivery > Effective Date of Coverage
    • Policy Delivery > Premium Collection
    • Policy Delivery > Statement of Good Health
    • Policy Delivery > Delivery receipt requirement (40 P.S. § 625.4)
    • Company Underwriting
    • Company Underwriting > Sources of Information
    • Company Underwriting > Classifications of Risk (Preferred, Standard, Substandard, Declined)
    • Company Underwriting > Selection criteria and unfair discrimination (40 P.S. § 477a)
    • Classification of Risks
    • Classification of Risks > Preferred
    • Classification of Risks > Standard
    • Classification of Risks > Substandard
  • 4.0 Types of Life Insurance Policies (17%)
    • Term Life Insurance
    • Term Life Insurance > Level
    • Term Life Insurance > Decreasing
    • Term Life Insurance > Increasing Term
    • Term Life Insurance > Renewable Term
    • Whole (Permanent, Ordinary) Life Insurance
    • Whole (Permanent, Ordinary) Life Insurance > Single Premium
    • Whole (Permanent, Ordinary) Life Insurance > Continuous Premium
    • Whole (Permanent, Ordinary) Life Insurance > Limited Payment Life
    • Whole (Permanent, Ordinary) Life Insurance > Adjustable Life
    • Universal Life
    • Index Whole Life
    • Specialized Policies
    • Specialized Policies > Joint Life
    • Specialized Policies > Survivorship Life
    • Specialized Policies > Juvenile
    • Specialized Policies > Return of Premium Term Insurance
    • Group Life Insurance
    • Group Life Insurance > Eligible Groups
    • Group Life Insurance > Characteristics of Group Life Insurance
    • Group Life Insurance > Conversion to individual policy (40 P.S. § 532.7)
  • 5.0 Life Insurance Policy Provisions, Options, and Riders (22%)
    • Standard Life Insurance Provisions (40 P.S. § 510)
    • Standard Life Insurance Provisions (40 P.S. § 510) > Ownership
    • Standard Life Insurance Provisions (40 P.S. § 510) > Assignment
    • Standard Life Insurance Provisions (40 P.S. § 510) > Right to Examine (Free Look) (40 P.S. § 510C (a), (2), (3), (b1))
    • Standard Life Insurance Provisions (40 P.S. § 510) > Payment of Premiums (a)
    • Standard Life Insurance Provisions (40 P.S. § 510) > Grace Period (b)
    • Standard Life Insurance Provisions (40 P.S. § 510) > Misstatement of Age/Sex (e)
    • Standard Life Insurance Provisions (40 P.S. § 510) > Incontestability (c)
    • Standard Life Insurance Provisions (40 P.S. § 510) > Reinstatement (k)
    • Standard Life Insurance Provisions (40 P.S. § 510) > Entire Contract (d)
    • Standard Life Insurance Provisions (40 P.S. § 510) > Payment of claims (l)
    • Standard Life Insurance Provisions (40 P.S. § 510) > Prohibited provisions including backdating (40 P.S. § 511)
    • Beneficiary Designation Options
    • Beneficiary Designation Options > Individuals
    • Beneficiary Designation Options > Classes
    • Beneficiary Designation Options > Estates
    • Beneficiary Designation Options > Minors
    • Beneficiary Designation Options > Trusts
    • Types of Beneficiaries
    • Types of Beneficiaries > Revocable versus Irrevocable
    • Types of Beneficiaries > Primary and Contingent
    • Beneficiary-Related Clauses
    • Beneficiary-Related Clauses > Common Disaster
    • Beneficiary-Related Clauses > Spendthrift
    • Beneficiary-Related Clauses > Effects of Divorce on Designation of Beneficiaries (20 Pa C.S.A.§ 6111.2)
    • Settlement Options
    • Settlement Options > Cash Payment (Lump Sum)
    • Settlement Options > Interest Only
    • Settlement Options > Life Income
    • Settlement Options > Fixed-Period
    • Settlement Options > Fixed-Amount Installments
    • Settlement Options > Retained Asset Account
    • Nonforfeiture Options
    • Nonforfeiture Options > Cash Surrender Value
    • Nonforfeiture Options > Extended Term
    • Nonforfeiture Options > Reduced Paid-Up Insurance
    • Policy Loan and Withdrawal Options
    • Policy Loan and Withdrawal Options > Loans
    • Policy Loan and Withdrawal Options > Automatic Premium Loans
    • Policy Loan and Withdrawal Options > Withdrawals Partial Surrenders
    • Dividend Options
    • Dividend Options > Paid-Up Additions
    • Dividend Options > Cash Payment (Lump Sum)
    • Dividend Options > One Year Term
    • Dividend Options > Reduction of Premium
    • Dividend Options > Accumulation at Interest
    • Disability Riders
    • Disability Riders > Waiver of Premium
    • Disability Riders > Disability Income Benefit
    • Disability Riders > Payor Benefit Life
    • Riders Covering Additional Insureds
    • Riders Covering Additional Insureds > Spouse
    • Riders Covering Additional Insureds > Children
    • Riders Covering Additional Insureds > Family
    • Riders Affecting Death Benefit Amount
    • Riders Affecting Death Benefit Amount > Accidental Death
    • Riders Affecting Death Benefit Amount > Guaranteed Insurability
    • Riders Affecting Death Benefit Amount > Cost of Living
    • Riders Affecting Death Benefit Amount > Return of Premium
    • Riders Affecting Death Benefit Amount > Accelerated (Living) Benefit Provision Rider
    • Riders Affecting Death Benefit Amount > Accelerated (Living) Benefit Provision Rider > Conditions for payment (31 Pa. Code Ch. 90f.3)
    • Riders Affecting Death Benefit Amount > Accelerated (Living) Benefit Provision Rider > Effect on death benefit (31 Pa. Code Ch. 90f.3)
    • Riders Affecting Death Benefit Amount > Accelerated (Living) Benefit Provision Rider > Exclusions and restrictions (31 Pa. Code Ch. 90f.4)
    • Riders Affecting Death Benefit Amount > Long-Term Care Rider
    • Policy Exclusions
  • 6.0 Annuities (12%)
    • Annuity Principles and Concepts
    • Annuity Principles and Concepts > Accumulation Period versus Annuity Period
    • Annuity Principles and Concepts > Owner, Annuitant, and Beneficiary
    • Annuity Principles and Concepts > Right to Examine (40 P.S. § 510D)
    • Immediate versus Deferred Annuities
    • Annuity (Benefit) Payment Options
    • Annuity (Benefit) Payment Options > Life Contingency Options
    • Annuity (Benefit) Payment Options > Annuities Certain
    • Annuity (Benefit) Payment Options > Pure Life versus Life with Guaranteed Minimum
    • Annuity (Benefit) Payment Options > Single Life versus Multiple Life
    • Annuity Products
    • Annuity Products > Fixed Annuities
    • Annuity Products > Equity Indexed Annuities
    • Annuity Products > Immediate Annuities
    • Annuity Products > Variable annuities
    • Annuity Products > Variable annuities > Assets in a separate account (31 Pa. Code Ch. 85.21–.27)
    • Annuity Products > Variable annuities > Regulation of variable annuities (SEC, FINRA and Pennsylvania) (31 Pa. Code Ch. 85.1–.4)
    • Annuity Products > Suitability of annuities (Act 48 of 2018)
    • Uses of Annuities
    • Uses of Annuities > Lump-Sum Settlements
    • Uses of Annuities > Retirement Income
    • Uses of Annuities > Education
  • 7.0 Federal Tax Considerations for Life Insurance (5%)
    • Requirements of Life Insurance Qualified Plans
    • Federal Tax Considerations for Qualified Plans
    • Federal Tax Considerations for Qualified Plans > Withdrawals
    • Federal Tax Considerations for Qualified Plans > Rollovers versus Transfers
    • Qualified Plan Types, Characteristics, and Purchasers
    • Qualified Plan Types, Characteristics, and Purchasers > Individual Retirement Accounts (IRAs; Traditional versus Roth; Immediate Annuity)
    • Qualified Plan Types, Characteristics, and Purchasers > 401k
    • Qualified Plan Types, Characteristics, and Purchasers > 403b
    • Taxation of Personal Life Insurance
    • Taxation of Personal Life Insurance > Premiums
    • Taxation of Personal Life Insurance > Dividends
    • Taxation of Personal Life Insurance > Settlements
    • Modified Endowment Contracts (MECs)
Examination sources