PA LIFE ACCIDENT HEALTH EXAM SCRIPT 2025/2026
QUESTIONS WITH SOLUTIONS RATED A+
✔✔Implied Authority - ✔✔an agent's authority to do things not specifically authorized in
order to carry out express authority
✔✔Apparent Authority - ✔✔The appearance or the assumption of authority based on
the actions, words, or deeds of the principal or because of circumstances the principal
created.
✔✔Fiduciary - ✔✔TRUST
-Promptly send premium to Insurer
-knowledge of products
-comply with laws and regulations
-no commingling
✔✔Characteristics of a Legal Contract - ✔✔Consideration (Value)
-insured gives info and prem to insurance co
- insurance co makes promise to pay policy to insured
Legal Purpose -risk transfer doesn't violate law
Offer - made by insured
-insured submitts app and prem to insurer
-insurer counteroffers
Acceptance - insurer accepts risk as presented
Competent Parties - insured age 18 and sane
✔✔Adhesion - ✔✔policy written by the insurance company/if ambiguous (not clear)-
court will take side of insured
✔✔aleatory - ✔✔not equal value - small premium for a large amount of coverage
✔✔Utmost Good Faith - ✔✔the insured and insurance company have a right to expect
honesty from each other
✔✔Unilateral - ✔✔Only ONE promise made. Insurance company PROMISES to pay for
a covered loss. Insured does NOT promise to pay the premium
✔✔Personal - ✔✔contract between the insurance company and the insured; cannot be
changed to someone else
✔✔Conditional - ✔✔insured must pay the premium for coverage and file a claim if a loss
occurs
✔✔indemnity - ✔✔pay for the loss but with no gain
,✔✔representation - ✔✔believed to be true
✔✔Misrepresentation - ✔✔information that is given that is not true, however, the correct
info would not affect the insurance companies decision - insured mistakenly gives one
number of their address wrong
✔✔Material Misrepresentation - ✔✔information given that is not true and DOES affect
the insurer's decision
✔✔warranty - ✔✔Promise guaranteed to be true
✔✔Concealment - ✔✔Failure to disclose
If intentional and info is material coverage can be voided
if NOT intentional - coverage cannot be voided
✔✔Fraud - ✔✔intentional act to cheat another
✔✔Waiver - ✔✔voluntarily giving up a right
✔✔Estoppel - ✔✔actions reasonably relied on by one party can't be denied by the party
that accepted same previously
✔✔Fraud and False Statements (Fraudulent Insurance Act) - ✔✔Fine and/or
imprisonment (10-15 years)
Embezzlement included
✔✔Changes in the Application - ✔✔must be initialed by the applicant
✔✔Backdating - ✔✔up to 6 months
✔✔Required Signatures on the Application - ✔✔Insured
Producer/agent
Applicant (if not the insured)
✔✔Producer's Report - ✔✔- completed by the producer (agent).
- not attached to policy if issued.
✔✔Conditional Receipt - ✔✔- Premium paid with application
- Insurance effective - later of
- Date application completed and signed
- Medical exam (if required)
- Must be standard or preferred risk
- Can be determined after death
, ✔✔Binding Receipt - ✔✔temporary, not common in life insurance
✔✔Underwriting Sources of Information - ✔✔1. Application
2. Medical exams
3. Attending physician statement
4. AIDS testing
5. MIB
6. Consumer reports
7. Investigative consumer reports
✔✔AIDS testing - ✔✔Applications may not ask about sexual orientation, testing not
based on geographical location, requires insureds written consent, cannot be reported
to the MIB
✔✔Medical Information Bureau (MIB) - ✔✔An information database that stores the
health histories of individuals who have applied for insurance in the past. Most
insurance companies subscribe to this database for underwriting purposes.
✔✔Classifications of Risk - ✔✔Standard, Preferred, Substandard, Declined
✔✔Agent Delivery - ✔✔Usually must get signed delivery receipt
✔✔Statement of Good Health - ✔✔Required if no premium with application, if health
changed- agent can't deliver policy
✔✔Effective date of coverage - ✔✔- Terms of conditional receipt is issued
- Substandard and pays additional premium - date of policy issue
- No receipt - policy issue date if premium paid at delivery
✔✔Fair Credit Reporting Act - ✔✔Act that protects privacy of background information
and ensures that information supplied is accurate.
Notice to applicant required
Consumers can dispute info in files
✔✔STOLI/IOLI - ✔✔Banned in most states
Investors named as beneficiaries
✔✔US Patriot Act - ✔✔A U.S. federal act that broadens the surveillance of law
enforcement agencies to enhance the detection and suppression of terrorism
✔✔ERISA - ✔✔The Employee Retirement Income Security Act of 1974 (ERISA) is a
federal law that sets minimum standards for most voluntarily established pension and
health plans in private industry to provide protection for individuals in these plans.
QUESTIONS WITH SOLUTIONS RATED A+
✔✔Implied Authority - ✔✔an agent's authority to do things not specifically authorized in
order to carry out express authority
✔✔Apparent Authority - ✔✔The appearance or the assumption of authority based on
the actions, words, or deeds of the principal or because of circumstances the principal
created.
✔✔Fiduciary - ✔✔TRUST
-Promptly send premium to Insurer
-knowledge of products
-comply with laws and regulations
-no commingling
✔✔Characteristics of a Legal Contract - ✔✔Consideration (Value)
-insured gives info and prem to insurance co
- insurance co makes promise to pay policy to insured
Legal Purpose -risk transfer doesn't violate law
Offer - made by insured
-insured submitts app and prem to insurer
-insurer counteroffers
Acceptance - insurer accepts risk as presented
Competent Parties - insured age 18 and sane
✔✔Adhesion - ✔✔policy written by the insurance company/if ambiguous (not clear)-
court will take side of insured
✔✔aleatory - ✔✔not equal value - small premium for a large amount of coverage
✔✔Utmost Good Faith - ✔✔the insured and insurance company have a right to expect
honesty from each other
✔✔Unilateral - ✔✔Only ONE promise made. Insurance company PROMISES to pay for
a covered loss. Insured does NOT promise to pay the premium
✔✔Personal - ✔✔contract between the insurance company and the insured; cannot be
changed to someone else
✔✔Conditional - ✔✔insured must pay the premium for coverage and file a claim if a loss
occurs
✔✔indemnity - ✔✔pay for the loss but with no gain
,✔✔representation - ✔✔believed to be true
✔✔Misrepresentation - ✔✔information that is given that is not true, however, the correct
info would not affect the insurance companies decision - insured mistakenly gives one
number of their address wrong
✔✔Material Misrepresentation - ✔✔information given that is not true and DOES affect
the insurer's decision
✔✔warranty - ✔✔Promise guaranteed to be true
✔✔Concealment - ✔✔Failure to disclose
If intentional and info is material coverage can be voided
if NOT intentional - coverage cannot be voided
✔✔Fraud - ✔✔intentional act to cheat another
✔✔Waiver - ✔✔voluntarily giving up a right
✔✔Estoppel - ✔✔actions reasonably relied on by one party can't be denied by the party
that accepted same previously
✔✔Fraud and False Statements (Fraudulent Insurance Act) - ✔✔Fine and/or
imprisonment (10-15 years)
Embezzlement included
✔✔Changes in the Application - ✔✔must be initialed by the applicant
✔✔Backdating - ✔✔up to 6 months
✔✔Required Signatures on the Application - ✔✔Insured
Producer/agent
Applicant (if not the insured)
✔✔Producer's Report - ✔✔- completed by the producer (agent).
- not attached to policy if issued.
✔✔Conditional Receipt - ✔✔- Premium paid with application
- Insurance effective - later of
- Date application completed and signed
- Medical exam (if required)
- Must be standard or preferred risk
- Can be determined after death
, ✔✔Binding Receipt - ✔✔temporary, not common in life insurance
✔✔Underwriting Sources of Information - ✔✔1. Application
2. Medical exams
3. Attending physician statement
4. AIDS testing
5. MIB
6. Consumer reports
7. Investigative consumer reports
✔✔AIDS testing - ✔✔Applications may not ask about sexual orientation, testing not
based on geographical location, requires insureds written consent, cannot be reported
to the MIB
✔✔Medical Information Bureau (MIB) - ✔✔An information database that stores the
health histories of individuals who have applied for insurance in the past. Most
insurance companies subscribe to this database for underwriting purposes.
✔✔Classifications of Risk - ✔✔Standard, Preferred, Substandard, Declined
✔✔Agent Delivery - ✔✔Usually must get signed delivery receipt
✔✔Statement of Good Health - ✔✔Required if no premium with application, if health
changed- agent can't deliver policy
✔✔Effective date of coverage - ✔✔- Terms of conditional receipt is issued
- Substandard and pays additional premium - date of policy issue
- No receipt - policy issue date if premium paid at delivery
✔✔Fair Credit Reporting Act - ✔✔Act that protects privacy of background information
and ensures that information supplied is accurate.
Notice to applicant required
Consumers can dispute info in files
✔✔STOLI/IOLI - ✔✔Banned in most states
Investors named as beneficiaries
✔✔US Patriot Act - ✔✔A U.S. federal act that broadens the surveillance of law
enforcement agencies to enhance the detection and suppression of terrorism
✔✔ERISA - ✔✔The Employee Retirement Income Security Act of 1974 (ERISA) is a
federal law that sets minimum standards for most voluntarily established pension and
health plans in private industry to provide protection for individuals in these plans.
