PA LIFE ACCIDENT HEALTH TEST PAPER 2025/2026
QUESTIONS WITH SOLUTIONS RATED A+
✔✔Pure risk - ✔✔Type of risk with only possibility of loss
✔✔Speculative risk - ✔✔Type of risk with possibility of loss or gain
✔✔Reinsurance - ✔✔Transfer of risk from one insurer to another, company accepts the
risk
✔✔Ceding insurer - ✔✔Reducing risk onto the reinsurer
✔✔The inability to perform 2 activities of daily living - ✔✔What defines the eligibility for
long term care?
✔✔100 percent - ✔✔In proprietors or partnerships what percent can someone who is
self-employed deduct when showing a net profit?
✔✔100 percent - ✔✔What percentage is the principal sum?
✔✔50 percent - ✔✔What percentage is the capital sum?
✔✔Employer discontinues plan, policy lapses, employee quits or is laid off, divorce, or a
child reaches age 26 - ✔✔What events terminate group health coverage?
✔✔COBRA - ✔✔Requires employers within 20 or more employees to allow former
employees and their dependents to continue coverage by employer plan at their own
cost
✔✔Cash Payment
Life Income
Interest Only
Fixed Period
Fixed Amount - ✔✔What are the 5 types of settlement options for paying death
benefits? (CLIFF)
✔✔Accidental Death
Guaranteed Insurability
Cost of Living
Return of Premium
Accelerated Living Benefit
Long Term Care Rider - ✔✔What are the 6 riders that affect death benefits? (AGCRAL)
✔✔Fixed Period
,Fixed Amount
Multiple
Single
Pure Life
Guaranteed Minimum - ✔✔What are 6 annuity payment options? (FFMSPG)
✔✔Permanent - ✔✔What type of life insurance is also known as "whole life" and is in
place until age 100?
✔✔Term - ✔✔What type of life insurance is temporary, only offers death benefit, and
has no cash value?
✔✔Participating - ✔✔What type of life insurance has a distribution of dividends to its
policyowners? (75 percent)
✔✔Non-participating - ✔✔What type of life insurance has no distribution of dividends?
(100 percent)
✔✔Fixed - ✔✔What type of life insurance offers a guaranteed minimum or set benefits?
✔✔Variable - ✔✔What type of life insurance has no guarantee of performance and has
a separate account?
✔✔10 days - ✔✔What is the free look period for life insurance?
✔✔45 days - ✔✔What is the free look internally for life replacement?
✔✔20 days - ✔✔What is the free look externally for life replacement?
✔✔30 days - ✔✔What is the grace period for life insurance?
✔✔Fee for service - ✔✔Medical plan where fee is paid in return for service provided
✔✔Prepaid - ✔✔Medical plan where individuals pay health maintenance organizations
specified amount and HMO agrees to provide needed care
✔✔Continuous Premium Whole Life - ✔✔What type of whole life insurance has the
same premiums for the life of the policy and pays the cash value if premiums are
stopped?
✔✔Limited Payment Whole Life - ✔✔What type of whole life insurance allows for a
lifetime of premiums to be paid in a shorter period of time? (10 or 20 pay level annual
installments)
, ✔✔Single Premium Whole Life - ✔✔What type of whole life insurance policy has one
payment made at the time of purchase and creates immediate cash value?
✔✔Modified Premium Whole Life - ✔✔What type of whole life insurance policy have
lower premiums in the first 3-5 years but then increase and become level? (End up
being more expensive)
✔✔Graded Premium Whole Life - ✔✔What type of whole life insurance policy has a
lower initial premium than modified whole life and increases every 5-10 years as long as
the policy remains in force?
✔✔Indeterminate Premium Whole Life - ✔✔What type of whole life insurance policy is
similar to a non-participating policy but allows for adjustable premiums
✔✔Adjustable Life Insurance - ✔✔What type of life insurance gives the policyowner the
power to adjust the face value and death benefit, premium, and length of coverage
without having to change the policy?
✔✔Universal Life Insurance - ✔✔What type of life insurance was designed for flexible
premiums and flexible coverage for the life of the policy where death benefits can be
altered? Premiums accumulate as interest within this policy's cash value.
✔✔Variable Life Insurance - ✔✔What type of life insurance policy has a separate
account instead of a guaranteed cash value with numerous death benefit options?
✔✔Hospital/Medical
Disability Income
Dental
Long-Term Care - ✔✔What are four types of health insurance policies? (HDDL)
✔✔Tax deducted - ✔✔In Health Savings Accounts are contributions not tax deducted or
tax deducted?
✔✔Tax deferred - ✔✔Are earnings within Health Savings Accounts not tax-deferred or
tax-deferred?
✔✔Agreement
Consideration
Competent Parties
Legal Purpose - ✔✔What are four required elements of legal contracts?
✔✔Independent Agent - ✔✔Agent who sells insurance products of several companies
and works for themselves or other agents
QUESTIONS WITH SOLUTIONS RATED A+
✔✔Pure risk - ✔✔Type of risk with only possibility of loss
✔✔Speculative risk - ✔✔Type of risk with possibility of loss or gain
✔✔Reinsurance - ✔✔Transfer of risk from one insurer to another, company accepts the
risk
✔✔Ceding insurer - ✔✔Reducing risk onto the reinsurer
✔✔The inability to perform 2 activities of daily living - ✔✔What defines the eligibility for
long term care?
✔✔100 percent - ✔✔In proprietors or partnerships what percent can someone who is
self-employed deduct when showing a net profit?
✔✔100 percent - ✔✔What percentage is the principal sum?
✔✔50 percent - ✔✔What percentage is the capital sum?
✔✔Employer discontinues plan, policy lapses, employee quits or is laid off, divorce, or a
child reaches age 26 - ✔✔What events terminate group health coverage?
✔✔COBRA - ✔✔Requires employers within 20 or more employees to allow former
employees and their dependents to continue coverage by employer plan at their own
cost
✔✔Cash Payment
Life Income
Interest Only
Fixed Period
Fixed Amount - ✔✔What are the 5 types of settlement options for paying death
benefits? (CLIFF)
✔✔Accidental Death
Guaranteed Insurability
Cost of Living
Return of Premium
Accelerated Living Benefit
Long Term Care Rider - ✔✔What are the 6 riders that affect death benefits? (AGCRAL)
✔✔Fixed Period
,Fixed Amount
Multiple
Single
Pure Life
Guaranteed Minimum - ✔✔What are 6 annuity payment options? (FFMSPG)
✔✔Permanent - ✔✔What type of life insurance is also known as "whole life" and is in
place until age 100?
✔✔Term - ✔✔What type of life insurance is temporary, only offers death benefit, and
has no cash value?
✔✔Participating - ✔✔What type of life insurance has a distribution of dividends to its
policyowners? (75 percent)
✔✔Non-participating - ✔✔What type of life insurance has no distribution of dividends?
(100 percent)
✔✔Fixed - ✔✔What type of life insurance offers a guaranteed minimum or set benefits?
✔✔Variable - ✔✔What type of life insurance has no guarantee of performance and has
a separate account?
✔✔10 days - ✔✔What is the free look period for life insurance?
✔✔45 days - ✔✔What is the free look internally for life replacement?
✔✔20 days - ✔✔What is the free look externally for life replacement?
✔✔30 days - ✔✔What is the grace period for life insurance?
✔✔Fee for service - ✔✔Medical plan where fee is paid in return for service provided
✔✔Prepaid - ✔✔Medical plan where individuals pay health maintenance organizations
specified amount and HMO agrees to provide needed care
✔✔Continuous Premium Whole Life - ✔✔What type of whole life insurance has the
same premiums for the life of the policy and pays the cash value if premiums are
stopped?
✔✔Limited Payment Whole Life - ✔✔What type of whole life insurance allows for a
lifetime of premiums to be paid in a shorter period of time? (10 or 20 pay level annual
installments)
, ✔✔Single Premium Whole Life - ✔✔What type of whole life insurance policy has one
payment made at the time of purchase and creates immediate cash value?
✔✔Modified Premium Whole Life - ✔✔What type of whole life insurance policy have
lower premiums in the first 3-5 years but then increase and become level? (End up
being more expensive)
✔✔Graded Premium Whole Life - ✔✔What type of whole life insurance policy has a
lower initial premium than modified whole life and increases every 5-10 years as long as
the policy remains in force?
✔✔Indeterminate Premium Whole Life - ✔✔What type of whole life insurance policy is
similar to a non-participating policy but allows for adjustable premiums
✔✔Adjustable Life Insurance - ✔✔What type of life insurance gives the policyowner the
power to adjust the face value and death benefit, premium, and length of coverage
without having to change the policy?
✔✔Universal Life Insurance - ✔✔What type of life insurance was designed for flexible
premiums and flexible coverage for the life of the policy where death benefits can be
altered? Premiums accumulate as interest within this policy's cash value.
✔✔Variable Life Insurance - ✔✔What type of life insurance policy has a separate
account instead of a guaranteed cash value with numerous death benefit options?
✔✔Hospital/Medical
Disability Income
Dental
Long-Term Care - ✔✔What are four types of health insurance policies? (HDDL)
✔✔Tax deducted - ✔✔In Health Savings Accounts are contributions not tax deducted or
tax deducted?
✔✔Tax deferred - ✔✔Are earnings within Health Savings Accounts not tax-deferred or
tax-deferred?
✔✔Agreement
Consideration
Competent Parties
Legal Purpose - ✔✔What are four required elements of legal contracts?
✔✔Independent Agent - ✔✔Agent who sells insurance products of several companies
and works for themselves or other agents
