PA LIFE INSURANCE EVALUATION EXAM 2026 QUESTIONS
AND ANSWERS SCORED A+
✔✔Binders are used in - ✔✔property and casualty insurance.
✔✔A conditional receipt is not given to an applicant unless - ✔✔the initial premium has
been paid.
✔✔Applicants may backdate a life insurance application - ✔✔for up to a specified
number of months (usually 6 months) in order to obtain a lower premium.
✔✔An incomplete application is - ✔✔usually returned.
✔✔However, should the underwriter approve it, - ✔✔coverage begins and the company
has waived its ability to contest a claim.
✔✔The earliest that coverage could start would be - ✔✔the day of application,
assuming the applicant paid the first premium, had no conditions to fulfill, and had not
lied on the application.
✔✔Coverage can NEVER begin unless - ✔✔the premium has been paid.
✔✔The HIV consent form states that the results of an HIV test will - ✔✔only be shared
with certain individuals, such as the underwriter.
✔✔Life insurers may discriminate - ✔✔based upon physical hazards (age and health) of
the applicant.
✔✔The company underwriter determines the - ✔✔final rating classification, not the
producer.
✔✔A preferred risk is likely to receive - ✔✔a premium discount.
✔✔A standard risk is - ✔✔one with an average life span. Most applicants are standard
risks.
✔✔A rated policy is one - ✔✔issued to a substandard risk with dangerous hobbies or
health problems.
✔✔An increasing term policy's - ✔✔limits increase each year. Sometimes called a
return-of-premium policy.
✔✔Term insurance is - ✔✔renewable without a physical examination, up to a certain
age.
, ✔✔Term insurance may be converted to - ✔✔whole life, but not the reverse
✔✔Conversion is based on - ✔✔the insured's current age.
✔✔Convertible term is - ✔✔convertible based upon the current or attained age of the
insured.
✔✔On term life insurance, - ✔✔the re-entry option is contingent upon the insured
passing a physical exam.
✔✔In a level term policy, - ✔✔the premium and the amount of coverage are level
throughout the term.
✔✔On an annual renewable level term policy, - ✔✔the premium will increase every
year, although the face amount will remain the same.
✔✔The face amount of a mortgage protection life insurance policy will - ✔✔decrease at
the same rate as the mortgage balance declines.
✔✔It is the face amount that decreases on a decreasing term policy, - ✔✔not the
premium.
✔✔Decreasing term is the - ✔✔type of life insurance provided in mortgage redemption
insurance.
✔✔Whole life policies must contain - ✔✔a table showing their guaranteed cash value at
the end of each year (anniversary date) for the first 20 years. It is shown per unit (per
thousand).
✔✔Whole life benefits are - ✔✔bundled (packaged).
✔✔Universal life benefits are - ✔✔transparent (stand-alone).
✔✔Whole life and limited pay life both reach maturity at - ✔✔the same time (age 100).
✔✔In a traditional whole life policy premiums - ✔✔are due until the insured dies or
reaches age 100.
✔✔Conversely, in a limited pay policy, the premiums - ✔✔are paid for a shorter period
of time.
✔✔Straight or traditional whole life has - ✔✔a level premium and will provide coverage
until the insured dies or reaches age 100.
AND ANSWERS SCORED A+
✔✔Binders are used in - ✔✔property and casualty insurance.
✔✔A conditional receipt is not given to an applicant unless - ✔✔the initial premium has
been paid.
✔✔Applicants may backdate a life insurance application - ✔✔for up to a specified
number of months (usually 6 months) in order to obtain a lower premium.
✔✔An incomplete application is - ✔✔usually returned.
✔✔However, should the underwriter approve it, - ✔✔coverage begins and the company
has waived its ability to contest a claim.
✔✔The earliest that coverage could start would be - ✔✔the day of application,
assuming the applicant paid the first premium, had no conditions to fulfill, and had not
lied on the application.
✔✔Coverage can NEVER begin unless - ✔✔the premium has been paid.
✔✔The HIV consent form states that the results of an HIV test will - ✔✔only be shared
with certain individuals, such as the underwriter.
✔✔Life insurers may discriminate - ✔✔based upon physical hazards (age and health) of
the applicant.
✔✔The company underwriter determines the - ✔✔final rating classification, not the
producer.
✔✔A preferred risk is likely to receive - ✔✔a premium discount.
✔✔A standard risk is - ✔✔one with an average life span. Most applicants are standard
risks.
✔✔A rated policy is one - ✔✔issued to a substandard risk with dangerous hobbies or
health problems.
✔✔An increasing term policy's - ✔✔limits increase each year. Sometimes called a
return-of-premium policy.
✔✔Term insurance is - ✔✔renewable without a physical examination, up to a certain
age.
, ✔✔Term insurance may be converted to - ✔✔whole life, but not the reverse
✔✔Conversion is based on - ✔✔the insured's current age.
✔✔Convertible term is - ✔✔convertible based upon the current or attained age of the
insured.
✔✔On term life insurance, - ✔✔the re-entry option is contingent upon the insured
passing a physical exam.
✔✔In a level term policy, - ✔✔the premium and the amount of coverage are level
throughout the term.
✔✔On an annual renewable level term policy, - ✔✔the premium will increase every
year, although the face amount will remain the same.
✔✔The face amount of a mortgage protection life insurance policy will - ✔✔decrease at
the same rate as the mortgage balance declines.
✔✔It is the face amount that decreases on a decreasing term policy, - ✔✔not the
premium.
✔✔Decreasing term is the - ✔✔type of life insurance provided in mortgage redemption
insurance.
✔✔Whole life policies must contain - ✔✔a table showing their guaranteed cash value at
the end of each year (anniversary date) for the first 20 years. It is shown per unit (per
thousand).
✔✔Whole life benefits are - ✔✔bundled (packaged).
✔✔Universal life benefits are - ✔✔transparent (stand-alone).
✔✔Whole life and limited pay life both reach maturity at - ✔✔the same time (age 100).
✔✔In a traditional whole life policy premiums - ✔✔are due until the insured dies or
reaches age 100.
✔✔Conversely, in a limited pay policy, the premiums - ✔✔are paid for a shorter period
of time.
✔✔Straight or traditional whole life has - ✔✔a level premium and will provide coverage
until the insured dies or reaches age 100.
