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PA LIFE, ACCIDENT, & HEALTH
INSURANCE EXAM 2026 QUESTIONS
AND ANSWERS| ACE YOUR GRADES.
1. When an insured dies in the grace period without paying the
premium due, - correct answer -the face amount will be paid to
the beneficiary, less the overdue premium.
2. If an insured whose policy has lapsed wants it back, - correct
answer -the insured can apply for reinstatement.
3. Upon policy reinstatement, - correct answer -the incontestability
and suicide clauses start over.
4. A life insurance policy that has been surrendered for cash -
correct answer -may not be reinstated.
5. Life insurance policies are incontestable - correct answer -after
they have been in force for 2 years.
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6. New life insurance policies are contestable - correct answer -for
material misrepresentation for the first 2 years.
7. Under the misstatement of age provision, if an insurer
discovers that an insured has misstated his or her age on the
policy application, - correct answer -the insurer will adjust the
premiums and benefits according to the correct age of the
insured.
8. The misstatement of age provision runs for the - correct answer
-duration of the policy.
9. Under the misstatement of age clause, - correct answer -if the
insured understates his or her age, it is the face amount that is
reduced.
10. Proceeds of a life insurance policy, - correct answer -left with
an insurer, for the benefit of a beneficiary, may NOT be
attached by creditors.
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11. Proceeds cannot - correct answer -be directly paid to a
minor child since a minor can't sign a release.
12. If the insured dies in an accident, - correct answer -the
insurer may order an autopsy to determine that death was not
the result of a suicide.
13. In most states, suicide is covered - correct answer -after 2
years. If an insured commits suicide within a specified period of
time after policy issue (usually the first 2 years), no benefit is
payable, but all premiums are refunded to the beneficiary.
14. If an insured buys a life insurance policy and dies one month
later, - correct answer -the insurer must pay the claim.
15. When a policyowner lists a group of people as beneficiaries,
- correct answer -it is known as a class designation.
16. Life insurance proceeds create an - correct answer -
immediate estate for the beneficiary.
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17. The beneficiary does not have to be of the age of majority -
correct answer -(18 or 21, depending upon the state) in order
to receive policy proceeds; however, proceeds cannot be
directly paid to a minor child since they cannot sign the release.
18. If the insured names an individual as their irrevocable
beneficiary, - correct answer -the insured cannot change this
designation without the beneficiary's consent.
19. A revocable beneficiary may - correct answer -be changed at
any time by the policyowner.
20. A revocable beneficiary has no vested rights under - correct
answer -a life policy.
21. An irrevocable beneficiary has a - correct answer -vested
interest in the policy.
PA LIFE, ACCIDENT, & HEALTH
INSURANCE EXAM 2026 QUESTIONS
AND ANSWERS| ACE YOUR GRADES.
1. When an insured dies in the grace period without paying the
premium due, - correct answer -the face amount will be paid to
the beneficiary, less the overdue premium.
2. If an insured whose policy has lapsed wants it back, - correct
answer -the insured can apply for reinstatement.
3. Upon policy reinstatement, - correct answer -the incontestability
and suicide clauses start over.
4. A life insurance policy that has been surrendered for cash -
correct answer -may not be reinstated.
5. Life insurance policies are incontestable - correct answer -after
they have been in force for 2 years.
, Page | 2
6. New life insurance policies are contestable - correct answer -for
material misrepresentation for the first 2 years.
7. Under the misstatement of age provision, if an insurer
discovers that an insured has misstated his or her age on the
policy application, - correct answer -the insurer will adjust the
premiums and benefits according to the correct age of the
insured.
8. The misstatement of age provision runs for the - correct answer
-duration of the policy.
9. Under the misstatement of age clause, - correct answer -if the
insured understates his or her age, it is the face amount that is
reduced.
10. Proceeds of a life insurance policy, - correct answer -left with
an insurer, for the benefit of a beneficiary, may NOT be
attached by creditors.
, Page | 3
11. Proceeds cannot - correct answer -be directly paid to a
minor child since a minor can't sign a release.
12. If the insured dies in an accident, - correct answer -the
insurer may order an autopsy to determine that death was not
the result of a suicide.
13. In most states, suicide is covered - correct answer -after 2
years. If an insured commits suicide within a specified period of
time after policy issue (usually the first 2 years), no benefit is
payable, but all premiums are refunded to the beneficiary.
14. If an insured buys a life insurance policy and dies one month
later, - correct answer -the insurer must pay the claim.
15. When a policyowner lists a group of people as beneficiaries,
- correct answer -it is known as a class designation.
16. Life insurance proceeds create an - correct answer -
immediate estate for the beneficiary.
, Page | 4
17. The beneficiary does not have to be of the age of majority -
correct answer -(18 or 21, depending upon the state) in order
to receive policy proceeds; however, proceeds cannot be
directly paid to a minor child since they cannot sign the release.
18. If the insured names an individual as their irrevocable
beneficiary, - correct answer -the insured cannot change this
designation without the beneficiary's consent.
19. A revocable beneficiary may - correct answer -be changed at
any time by the policyowner.
20. A revocable beneficiary has no vested rights under - correct
answer -a life policy.
21. An irrevocable beneficiary has a - correct answer -vested
interest in the policy.
