PA LIFE ACCIDENT HEALTH EXAMINATION TEST
2025/2026 QUESTIONS WITH SOLUTIONS RATED A+
✔✔Sherwood has no valid will but has named his estate as the beneficiary of his life
insurance policy. As a result, he can expect that the policy proceeds - ✔✔will not be
subject to tax
✔✔A company may write insurance in excess of its retention limits - ✔✔by insuring the
excess with other companies through a reinsurance agreement or treaty
✔✔If Desdemona is insured by a life policy with a face amount of $250,000, but which
has an outstanding policy loan of $10,000 at her death, the insurer - ✔✔will subtract the
amount of the outstanding loan and pay $240,000 to the beneficiary
✔✔A qualified retirement plan distribution caused by the plan participant's death is
considered to be - ✔✔income in respect of a decedent (IRD)
✔✔A renewable life insurance policy - ✔✔gets more and more expensive every time it
is renewed
✔✔An insured who signs a fraudulent claim form - ✔✔will suffer a premium increase
✔✔With a modified premium whole life contract, premiums - ✔✔are lower in the first few
years
✔✔If an application for reinstatement of a policy is filed by a policyholder, but the
company takes no action on the reinstatement, the policy is automatically reinstated
after how many days? - ✔✔45
✔✔All of the following are alternatives an insurer has when asked to insure a
substandard risk EXCEPT - ✔✔issue the policy with a probationary period after which
the insurer may continue or cancel the policy
✔✔Associations organized to protect claimants, policyholders, annuitants, and creditors
of financially impaired insurers are known as - ✔✔guaranty associations
✔✔The capital sum in an accident policy is - ✔✔the amount paid to the insured for
dismemberment or loss of sight
✔✔Zelda dies with the premium still due on her life policy, but before the grace period
has expired. Zelda's beneficiary can expect the amount of the past-due premium to be -
✔✔deducted from the face amount of the policy before the proceeds are paid by the
insurer
, ✔✔Bob wants a life policy that provides his wife Sue payments for life. If Sue dies
before 10 years have passed, their daughter Mary will continue to receive the payments
until the end of a 10-year period. Bob's choice is - ✔✔the life income, 10 years certain
option
✔✔An insurance company's unpaid claim reserve can be defined as - ✔✔money held
for those policyowners who have claims but have not yet filed them
✔✔Transacting insurance includes all of the following EXCEPT - ✔✔applying for a
certificate of authority
✔✔Ben invests in an annuity that begins making payments of $2,500 a month for as
long as Ben lives. Ben's annuity is - ✔✔immediate and fixed
✔✔Under which of the following circumstances will the payor rider waive premiums and
allow a life policy to remain in force? - ✔✔If the policyowner dies or becomes disabled
prior to the insured reaching either age 21 or 25
✔✔Vanessa's policy on her life names her 3 brothers as beneficiaries to share equally
in the proceeds. If any of the brothers predeceases Vanessa, that brother's share will be
passed on to his child. Vanessa's beneficiary designation is known as - ✔✔per stirpes
✔✔An agent speaks disparagingly of a competitor while trying to sell an insurance
policy. What unfair marketing practice has the agent committed? - ✔✔twisting
✔✔The Insurance Code is composed of provisions allowing all of the following EXCEPT
- ✔✔enabling the Commissioner to make necessary changes in the Code
✔✔In noncontributory group health plans, how many eligible employees must be
covered by the plan? - ✔✔noncontributory plan
✔✔an insolvent insurer is one that - ✔✔cannot meet its financial obligations
✔✔An insurance policy that provides partial replacement of earnings when the insured
is unable to work because of a disabling injury or illness is known as - ✔✔disability
insurance policy
✔✔The fact that Elmo could die after paying just one premium on his life insurance
policy and still have the entire face amount paid to his beneficiary is an example of -
✔✔aleatory contract
2025/2026 QUESTIONS WITH SOLUTIONS RATED A+
✔✔Sherwood has no valid will but has named his estate as the beneficiary of his life
insurance policy. As a result, he can expect that the policy proceeds - ✔✔will not be
subject to tax
✔✔A company may write insurance in excess of its retention limits - ✔✔by insuring the
excess with other companies through a reinsurance agreement or treaty
✔✔If Desdemona is insured by a life policy with a face amount of $250,000, but which
has an outstanding policy loan of $10,000 at her death, the insurer - ✔✔will subtract the
amount of the outstanding loan and pay $240,000 to the beneficiary
✔✔A qualified retirement plan distribution caused by the plan participant's death is
considered to be - ✔✔income in respect of a decedent (IRD)
✔✔A renewable life insurance policy - ✔✔gets more and more expensive every time it
is renewed
✔✔An insured who signs a fraudulent claim form - ✔✔will suffer a premium increase
✔✔With a modified premium whole life contract, premiums - ✔✔are lower in the first few
years
✔✔If an application for reinstatement of a policy is filed by a policyholder, but the
company takes no action on the reinstatement, the policy is automatically reinstated
after how many days? - ✔✔45
✔✔All of the following are alternatives an insurer has when asked to insure a
substandard risk EXCEPT - ✔✔issue the policy with a probationary period after which
the insurer may continue or cancel the policy
✔✔Associations organized to protect claimants, policyholders, annuitants, and creditors
of financially impaired insurers are known as - ✔✔guaranty associations
✔✔The capital sum in an accident policy is - ✔✔the amount paid to the insured for
dismemberment or loss of sight
✔✔Zelda dies with the premium still due on her life policy, but before the grace period
has expired. Zelda's beneficiary can expect the amount of the past-due premium to be -
✔✔deducted from the face amount of the policy before the proceeds are paid by the
insurer
, ✔✔Bob wants a life policy that provides his wife Sue payments for life. If Sue dies
before 10 years have passed, their daughter Mary will continue to receive the payments
until the end of a 10-year period. Bob's choice is - ✔✔the life income, 10 years certain
option
✔✔An insurance company's unpaid claim reserve can be defined as - ✔✔money held
for those policyowners who have claims but have not yet filed them
✔✔Transacting insurance includes all of the following EXCEPT - ✔✔applying for a
certificate of authority
✔✔Ben invests in an annuity that begins making payments of $2,500 a month for as
long as Ben lives. Ben's annuity is - ✔✔immediate and fixed
✔✔Under which of the following circumstances will the payor rider waive premiums and
allow a life policy to remain in force? - ✔✔If the policyowner dies or becomes disabled
prior to the insured reaching either age 21 or 25
✔✔Vanessa's policy on her life names her 3 brothers as beneficiaries to share equally
in the proceeds. If any of the brothers predeceases Vanessa, that brother's share will be
passed on to his child. Vanessa's beneficiary designation is known as - ✔✔per stirpes
✔✔An agent speaks disparagingly of a competitor while trying to sell an insurance
policy. What unfair marketing practice has the agent committed? - ✔✔twisting
✔✔The Insurance Code is composed of provisions allowing all of the following EXCEPT
- ✔✔enabling the Commissioner to make necessary changes in the Code
✔✔In noncontributory group health plans, how many eligible employees must be
covered by the plan? - ✔✔noncontributory plan
✔✔an insolvent insurer is one that - ✔✔cannot meet its financial obligations
✔✔An insurance policy that provides partial replacement of earnings when the insured
is unable to work because of a disabling injury or illness is known as - ✔✔disability
insurance policy
✔✔The fact that Elmo could die after paying just one premium on his life insurance
policy and still have the entire face amount paid to his beneficiary is an example of -
✔✔aleatory contract
