PA Insurance Exam Practice questions and answers
2026\2027 A+ Grade
Child Term Rider
- correct answer Jonas is a whole life insurance policyowner and would like to add coverage for his two
children. Which of the following products would allow him to accomplish this?
Lifetime Protection
- correct answer A limited payment whole life policy provides
Can be converted to permanent coverage without evidence of insurability
- correct answer Donald is the primary insured of a life insurance policy and adds a children's term rider.
What is the advantage of adding this rider?
a policy that is paid up after only one payment
- correct answer A single premium cash value policy can be described as
term, whole, and universal life insurance
- correct answer Whole life policy with premiums paid up after 20 years
What types of life insurance are normally used for key employee indemnification
equal the face amount of the policy
- correct answer Level premium permanent insurance accumulates a reserve that will eventually
universal life
- correct answer A life insurance policy that contains a guaranteed interest rate with the chance to earn
a rate that is higher than the guaranteed rate is called
Variable Universal Policy
- correct answer Which type of life insurance offers flexible premiums, a flexible death benefit, and the
choice of how the cash value will be invested
,hedge against inflation
- correct answer Index whole life insurance contains a securities component that acts as a(n
Which type of multiple protection policy pays on the death of the last person?
- correct answer survivorship life policy
All of these are valid options for an Adjustable Life Policy EXCEP
- correct answer a nonforfeiture option can be used to increase the death benefit
A securities license is required for a life insurance producer to sell
- correct answer Variable life insurance
Seeks temporary protection and lower premium
- correct answer Term insurance is appropriate for someone who
level premiums
- correct answer When a decreasing term policy is purchased, it contains a decreasing death benefit and
Death benefit
- correct answer Which of these is NOT subject to income taxation under a Modified Endowment
Contract (MEC)?
Decreasing
- correct answer The least expensive option to pay off a 30-year mortgage balance would be
Lifetime Protection
- correct answer A limited payment whole life policy provides
Equity index whole life
- correct answer Peter has a policy where 80% to 90% of the premium is invested in traditional fixed
income securities and the remainder of the premium is invested in contracts tied to a stipulated stock
index. What kind of policy is this?
, coverage is eliminated
- correct answer What happens to the coverage under a children's term rider when that child reaches a
certain specified age
Joint
- correct answer A life insurance policy written on one contract for two people in which it is payable
upon the first death is called
Period of time after the premium is due but the policy remains in force
- correct answer What is an insurance policy's grace period
accumulation of interest
- correct answer Of the following dividend options, which of these is taxable
Nonforfeiture provision
- correct answer A provision in a whole life policy that allows a policyowner to terminate the policy in
return for a reduced paid-up policy of the same type is called a(n)
Accident
- correct answer The double indemnity provision in a life insurance policy pertains to an insured's death
caused by a(n
A proprated death benefit based on the amount of insurance the insured premiums would have been if
purchased at the correct age
- correct answer If an insured's age on a life insurance policy has been misstated, what is the insurer's
liability if the insured dies
Medical underwriting
- correct answer A guaranteed issue insurance policy has no
Net death benefit will be reduced if the loan is not paid
- correct answer Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value.
She would like to borrow $15,000 against the cash value. Which of the following statements is TRUE
2026\2027 A+ Grade
Child Term Rider
- correct answer Jonas is a whole life insurance policyowner and would like to add coverage for his two
children. Which of the following products would allow him to accomplish this?
Lifetime Protection
- correct answer A limited payment whole life policy provides
Can be converted to permanent coverage without evidence of insurability
- correct answer Donald is the primary insured of a life insurance policy and adds a children's term rider.
What is the advantage of adding this rider?
a policy that is paid up after only one payment
- correct answer A single premium cash value policy can be described as
term, whole, and universal life insurance
- correct answer Whole life policy with premiums paid up after 20 years
What types of life insurance are normally used for key employee indemnification
equal the face amount of the policy
- correct answer Level premium permanent insurance accumulates a reserve that will eventually
universal life
- correct answer A life insurance policy that contains a guaranteed interest rate with the chance to earn
a rate that is higher than the guaranteed rate is called
Variable Universal Policy
- correct answer Which type of life insurance offers flexible premiums, a flexible death benefit, and the
choice of how the cash value will be invested
,hedge against inflation
- correct answer Index whole life insurance contains a securities component that acts as a(n
Which type of multiple protection policy pays on the death of the last person?
- correct answer survivorship life policy
All of these are valid options for an Adjustable Life Policy EXCEP
- correct answer a nonforfeiture option can be used to increase the death benefit
A securities license is required for a life insurance producer to sell
- correct answer Variable life insurance
Seeks temporary protection and lower premium
- correct answer Term insurance is appropriate for someone who
level premiums
- correct answer When a decreasing term policy is purchased, it contains a decreasing death benefit and
Death benefit
- correct answer Which of these is NOT subject to income taxation under a Modified Endowment
Contract (MEC)?
Decreasing
- correct answer The least expensive option to pay off a 30-year mortgage balance would be
Lifetime Protection
- correct answer A limited payment whole life policy provides
Equity index whole life
- correct answer Peter has a policy where 80% to 90% of the premium is invested in traditional fixed
income securities and the remainder of the premium is invested in contracts tied to a stipulated stock
index. What kind of policy is this?
, coverage is eliminated
- correct answer What happens to the coverage under a children's term rider when that child reaches a
certain specified age
Joint
- correct answer A life insurance policy written on one contract for two people in which it is payable
upon the first death is called
Period of time after the premium is due but the policy remains in force
- correct answer What is an insurance policy's grace period
accumulation of interest
- correct answer Of the following dividend options, which of these is taxable
Nonforfeiture provision
- correct answer A provision in a whole life policy that allows a policyowner to terminate the policy in
return for a reduced paid-up policy of the same type is called a(n)
Accident
- correct answer The double indemnity provision in a life insurance policy pertains to an insured's death
caused by a(n
A proprated death benefit based on the amount of insurance the insured premiums would have been if
purchased at the correct age
- correct answer If an insured's age on a life insurance policy has been misstated, what is the insurer's
liability if the insured dies
Medical underwriting
- correct answer A guaranteed issue insurance policy has no
Net death benefit will be reduced if the loan is not paid
- correct answer Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value.
She would like to borrow $15,000 against the cash value. Which of the following statements is TRUE
