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Life and Health Insurance Producer Exam

Conduct (PA): practice questions

Our Life & Health Insurance bank has 5 questions on this topic. Here are 4 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · Pennsylvania

Two agencies agree to refuse to place business with an insurer, unreasonably restraining trade. Under the Unfair Insurance Practices Act this is

  1. unfair discrimination in rates between insureds
  2. an act of boycott, coercion or intimidation
  3. misrepresentation of the insurer's policy terms
  4. permitted collective action
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B. an act of boycott, coercion or intimidation — Unfair Insurance Practices Act, sec. 5(a)(4) (40 P.S. 1171.5).

Question 2 · Pennsylvania

Circulating a false or maliciously critical statement about a competitor's financial condition, calculated to injure it, is prohibited in Pennsylvania as

  1. unfair discrimination
  2. defamation
  3. illegal boycotting
  4. misrepresentation
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B. defamation — Unfair Insurance Practices Act, sec. 5(a)(3) (40 P.S. 1171.5).

Question 3 · Pennsylvania

An agent misrepresents an existing policy to persuade the owner to surrender it and buy a new one. Under the Unfair Insurance Practices Act, this is

  1. a violation only if the agent is paid a commission
  2. lawful if the new policy has a lower premium
  3. an unfair or deceptive act, commonly called twisting
  4. rebating, since the customer receives something of value
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C. an unfair or deceptive act, commonly called twisting — Unfair Insurance Practices Act, sec. 5(a)(1)(vi) (40 P.S. 1171.5); see also 31 Pa. Code 89.786(b)(1).

Question 4 · Pennsylvania

An advertisement offers permanent life insurance to people age 50 or older. What must it also disclose under Pennsylvania law?

  1. The producer's commission rate for both the first and renewal years
  2. A table comparing its premiums with those of three competing insurers
  3. The insurer's financial strength rating
  4. Any reduction in the face amount payable and the period it applies
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D. Any reduction in the face amount payable and the period it applies — Unfair Insurance Practices Act, sec. 5(a)(13) (40 P.S. 1171.5).

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