PA LIFE ACCIDENT HEALTH EVALUATION EXAM 2025/2026
QUESTIONS WITH SOLUTIONS RATED A+
✔✔Which type of receipt makes the insurer liable for the risk from the date of
application, regardless of the applicant's insurability? - ✔✔binding reciept
✔✔When does insurable interest come into play in a life insurance policy? - ✔✔when
the applicant for the policy is not the insured
✔✔A consumer report used to determine eligebility for insurance may include all of the
following EXCEPT - ✔✔medical underwriting exam
✔✔Why are insurance policies considered conditional contracts? - ✔✔Certian
conditions need to be met to make the contract legally enforcable
✔✔All of the following are TRUE regarding incomplete applications EXCEPT: - ✔✔the
incomplete application can be accepted with the missing information added later.
✔✔Obtaining consumer information reports under false pretenses is prosecutable by
which of the following? - ✔✔Fair Credit Reporting Act
✔✔How do warranties differ from representations? - ✔✔a warranty is guaranteed to be
true, a representation is believed to be true to the best of one's knowledge.
✔✔In a case where an individual's health is insured by both their own policy and their
spouse's policy, which policy pays in the event of an illness? - ✔✔The individual's policy
pays first, the spouse's policy pays the remaining up to coverage amount.
✔✔Why is rehabilitation considered worthy of federal help under workers'
compensation? - ✔✔it reduces insurance losses and helps regain the worker's dignity
✔✔Under which situation must insurable interest exist between the applicant and
insured at the time of application? - ✔✔When a third-party applicant names themselves
beneficiary.
✔✔When can the premiums of an individually owned health insurance policy be
deducted from the individual's income tax? - ✔✔when the taxpayer's medical expenses
exceed 7.5% of adjusted gross income during a taxable year
✔✔Short term disability insurance generally only covers injuries due to which of the
following? - ✔✔non-occupational injuries
, ✔✔Why is relying solely on employer group life insurance generally considered
inadequate for most individual's needs? - ✔✔It is financially insufficient to cover end of
life expenses.
✔✔What type of insurance should a company purchase if it wants to insure the life of its
CEO? - ✔✔key person insurance
✔✔Which of the following is characteristic of a nonqualified plan? - ✔✔plan does not
meet federal guidelines for tax benefits
✔✔All of the following are tax qualified retirement pans EXCEPT: - ✔✔Section 529 plan
✔✔For an individual long-term care policy there is an annual dollar limit for tax
deductions that is based on which of the following? - ✔✔age
✔✔Managed care plans increase efficency by all of the following means EXCEPT -
✔✔transferring the management of costs to the insureds
✔✔The group conversion option is not allowed for: - ✔✔during the annual benefits
enrollment period
✔✔in noncontributory plans, which percentage of eligible members must participate? -
✔✔100%
✔✔All of the following are requirements to qualify for Social Security disability benefits
EXCEPT when - ✔✔unable to work in iccupation in which the worker was trained or
educated
✔✔How long after being entitled to disability benefits will an individual be eligible to
receive Medicare benefits? - ✔✔2 years
✔✔In a home healthcare benefit, the following is NOT an eligible expense: - ✔✔blood
transfusions
✔✔Which of the following amends the Social Security Act to make Medicare secondary
to group health plans? - ✔✔TEFRA
✔✔Compared to basic hospital, medical and surgical policies, which type of insurance
provides broader coverage, fewer gaps, higher individual benefits, and higher policy
maximums? - ✔✔major medical insurance
✔✔A basic vision care package includes all of the following EXCEPT - ✔✔safety
glasses
QUESTIONS WITH SOLUTIONS RATED A+
✔✔Which type of receipt makes the insurer liable for the risk from the date of
application, regardless of the applicant's insurability? - ✔✔binding reciept
✔✔When does insurable interest come into play in a life insurance policy? - ✔✔when
the applicant for the policy is not the insured
✔✔A consumer report used to determine eligebility for insurance may include all of the
following EXCEPT - ✔✔medical underwriting exam
✔✔Why are insurance policies considered conditional contracts? - ✔✔Certian
conditions need to be met to make the contract legally enforcable
✔✔All of the following are TRUE regarding incomplete applications EXCEPT: - ✔✔the
incomplete application can be accepted with the missing information added later.
✔✔Obtaining consumer information reports under false pretenses is prosecutable by
which of the following? - ✔✔Fair Credit Reporting Act
✔✔How do warranties differ from representations? - ✔✔a warranty is guaranteed to be
true, a representation is believed to be true to the best of one's knowledge.
✔✔In a case where an individual's health is insured by both their own policy and their
spouse's policy, which policy pays in the event of an illness? - ✔✔The individual's policy
pays first, the spouse's policy pays the remaining up to coverage amount.
✔✔Why is rehabilitation considered worthy of federal help under workers'
compensation? - ✔✔it reduces insurance losses and helps regain the worker's dignity
✔✔Under which situation must insurable interest exist between the applicant and
insured at the time of application? - ✔✔When a third-party applicant names themselves
beneficiary.
✔✔When can the premiums of an individually owned health insurance policy be
deducted from the individual's income tax? - ✔✔when the taxpayer's medical expenses
exceed 7.5% of adjusted gross income during a taxable year
✔✔Short term disability insurance generally only covers injuries due to which of the
following? - ✔✔non-occupational injuries
, ✔✔Why is relying solely on employer group life insurance generally considered
inadequate for most individual's needs? - ✔✔It is financially insufficient to cover end of
life expenses.
✔✔What type of insurance should a company purchase if it wants to insure the life of its
CEO? - ✔✔key person insurance
✔✔Which of the following is characteristic of a nonqualified plan? - ✔✔plan does not
meet federal guidelines for tax benefits
✔✔All of the following are tax qualified retirement pans EXCEPT: - ✔✔Section 529 plan
✔✔For an individual long-term care policy there is an annual dollar limit for tax
deductions that is based on which of the following? - ✔✔age
✔✔Managed care plans increase efficency by all of the following means EXCEPT -
✔✔transferring the management of costs to the insureds
✔✔The group conversion option is not allowed for: - ✔✔during the annual benefits
enrollment period
✔✔in noncontributory plans, which percentage of eligible members must participate? -
✔✔100%
✔✔All of the following are requirements to qualify for Social Security disability benefits
EXCEPT when - ✔✔unable to work in iccupation in which the worker was trained or
educated
✔✔How long after being entitled to disability benefits will an individual be eligible to
receive Medicare benefits? - ✔✔2 years
✔✔In a home healthcare benefit, the following is NOT an eligible expense: - ✔✔blood
transfusions
✔✔Which of the following amends the Social Security Act to make Medicare secondary
to group health plans? - ✔✔TEFRA
✔✔Compared to basic hospital, medical and surgical policies, which type of insurance
provides broader coverage, fewer gaps, higher individual benefits, and higher policy
maximums? - ✔✔major medical insurance
✔✔A basic vision care package includes all of the following EXCEPT - ✔✔safety
glasses
