PA LIFE, ACCIDENT, & HEALTH INSURANCE
UPDATED EXAM 2025 |159 QUESTIONS WITH
ACCURATE SOLUTIONS
1. An insurance producer represents the ___ in an insurance transaction.
insurer
beneficiary
policyowner
insured
2. Which type of authority is not written directly into the
contract, but the agent is assumed to have in order to
transact business?
Implied
Express
Apparent
3. Who is responsible for explaining the policy provisions,
riders, and exclusions to the applicant in a life insurance
, transaction?
insurer
applicant
beneficiary
producer
4. Describe the significance of the principle of utmost good faith in
insurance transactions.
It requires that all insurance policies must be written
in clear language.
, It allows one party to withhold information if it benefits them.
It ensures that all parties act honestly and disclose
relevant information to each other.
It mandates that insurance companies must pay claims
regardless of the circumstances.
5. This life policy allows an insured to take out a partial surrender
whole life policy
a universal life policy
modified life
policy variable
life policy
6. If an applicant for a life insurance policy fails to disclose a serious
medical condition, what might be the consequence during a
claim?
The claim may be denied due to concealment of a material
fact.
The insurer will require additional documentation for
approval.
The claim will be automatically approved regardless of
the condition.
The insurer will increase the premium for the policy.
7. Describe the tax implications of taking a policy loan from a life
insurance policy.
Policy loans incur taxes immediately upon
borrowing. Policy loans are taxed only if the
, policyholder dies.
Policy loans are always taxable as income.
UPDATED EXAM 2025 |159 QUESTIONS WITH
ACCURATE SOLUTIONS
1. An insurance producer represents the ___ in an insurance transaction.
insurer
beneficiary
policyowner
insured
2. Which type of authority is not written directly into the
contract, but the agent is assumed to have in order to
transact business?
Implied
Express
Apparent
3. Who is responsible for explaining the policy provisions,
riders, and exclusions to the applicant in a life insurance
, transaction?
insurer
applicant
beneficiary
producer
4. Describe the significance of the principle of utmost good faith in
insurance transactions.
It requires that all insurance policies must be written
in clear language.
, It allows one party to withhold information if it benefits them.
It ensures that all parties act honestly and disclose
relevant information to each other.
It mandates that insurance companies must pay claims
regardless of the circumstances.
5. This life policy allows an insured to take out a partial surrender
whole life policy
a universal life policy
modified life
policy variable
life policy
6. If an applicant for a life insurance policy fails to disclose a serious
medical condition, what might be the consequence during a
claim?
The claim may be denied due to concealment of a material
fact.
The insurer will require additional documentation for
approval.
The claim will be automatically approved regardless of
the condition.
The insurer will increase the premium for the policy.
7. Describe the tax implications of taking a policy loan from a life
insurance policy.
Policy loans incur taxes immediately upon
borrowing. Policy loans are taxed only if the
, policyholder dies.
Policy loans are always taxable as income.
