PA LIFE ACCIDENT HEALTH PRACTICE EXAM 2025/2026
QUESTIONS WITH SOLUTIONS RATED A+
✔✔How many days does the viator have to rescind the viatical contract? - ✔✔30 days
from the contract date
✔✔When must the viatical statement provider pay the proceeds? - ✔✔within 15 days
after receiving required documents
✔✔What is the maximum probationary period allowed in health insurance? - ✔✔30 days
✔✔What is the free look period for HEALTH INSURANCE? - ✔✔10 days
✔✔What is the free look period for LTC and MEDICARE SUPPLEMENT INSURANCE?
- ✔✔30 days
✔✔What is the time limit of contesting certain defenses under a health policy
(incontestability clause)? - ✔✔3 years
✔✔What is the max pre-existing condition exclusion period for group policies not
subject to ACA? - ✔✔12 months
✔✔What is the max pre-existing condition exclusion for individual non-ACA policies? -
✔✔3 years
✔✔What is the max exclusion for simplified issue individual policies? - ✔✔12 months
✔✔Are pre-existing exclusions allowed under ACA-Compliance individual/group plans?
- ✔✔Not allowed
✔✔What is the minimum benefit period for LTC policy in PA? - ✔✔12 months
✔✔What is the minimum inflation protection percentage that must be offered in LTC
policies? - ✔✔5%
✔✔What is the maximum 1st year commission allowed for LTC policies? - ✔✔50% for
the 1st year premium
✔✔What is the max renewal commission allowed for LTC policies? - ✔✔10% of the
renewal premium
✔✔What is the max pre-existing condition exclusion period for LTC policies? - ✔✔6
months
, ✔✔What are the penalties for LTC regulation violations? - ✔✔Up to 3x commissions or
$10,000 whichever is greater
✔✔What is the max allowable 1st year compensation for Medicare supplements? -
✔✔No more than 200% of servicing compensation
✔✔When does the open enrollment period for Medicare supplements begin? -
✔✔Within 6 months of enrolling in Medicare Part B ) age 65+)
✔✔What is the guaranteed issue window after losing prior coverage? - ✔✔63 days from
termination or disenrollment
✔✔What is insurance? - ✔✔the transfer of risk
✔✔Risk = - ✔✔uncertainty/possibility of a loss
✔✔What are the types of risk? - ✔✔Speculative Risk
Pure Risk
✔✔Speculative Risk - ✔✔chance of loss or gain; not insurable
✔✔Pure risk - ✔✔chance of loss only; insurable
✔✔What is exposure? - ✔✔risks for which the insurance company would be liable
✔✔What is a peril? - ✔✔a cause of loss
the "what?"
✔✔What is a hazard? - ✔✔something that causes an increase in the chance of loss
✔✔Physical Hazard - ✔✔The hazard can be seen
✔✔Moral Hazard - ✔✔a belief that intentionally causing a loss is acceptable
✔✔Morale Hazard - ✔✔carelessness
✔✔What are the methods of handling risk? - ✔✔STARR
- Sharing
- Transfer
- Avoidance
- Retention
- Reduction
QUESTIONS WITH SOLUTIONS RATED A+
✔✔How many days does the viator have to rescind the viatical contract? - ✔✔30 days
from the contract date
✔✔When must the viatical statement provider pay the proceeds? - ✔✔within 15 days
after receiving required documents
✔✔What is the maximum probationary period allowed in health insurance? - ✔✔30 days
✔✔What is the free look period for HEALTH INSURANCE? - ✔✔10 days
✔✔What is the free look period for LTC and MEDICARE SUPPLEMENT INSURANCE?
- ✔✔30 days
✔✔What is the time limit of contesting certain defenses under a health policy
(incontestability clause)? - ✔✔3 years
✔✔What is the max pre-existing condition exclusion period for group policies not
subject to ACA? - ✔✔12 months
✔✔What is the max pre-existing condition exclusion for individual non-ACA policies? -
✔✔3 years
✔✔What is the max exclusion for simplified issue individual policies? - ✔✔12 months
✔✔Are pre-existing exclusions allowed under ACA-Compliance individual/group plans?
- ✔✔Not allowed
✔✔What is the minimum benefit period for LTC policy in PA? - ✔✔12 months
✔✔What is the minimum inflation protection percentage that must be offered in LTC
policies? - ✔✔5%
✔✔What is the maximum 1st year commission allowed for LTC policies? - ✔✔50% for
the 1st year premium
✔✔What is the max renewal commission allowed for LTC policies? - ✔✔10% of the
renewal premium
✔✔What is the max pre-existing condition exclusion period for LTC policies? - ✔✔6
months
, ✔✔What are the penalties for LTC regulation violations? - ✔✔Up to 3x commissions or
$10,000 whichever is greater
✔✔What is the max allowable 1st year compensation for Medicare supplements? -
✔✔No more than 200% of servicing compensation
✔✔When does the open enrollment period for Medicare supplements begin? -
✔✔Within 6 months of enrolling in Medicare Part B ) age 65+)
✔✔What is the guaranteed issue window after losing prior coverage? - ✔✔63 days from
termination or disenrollment
✔✔What is insurance? - ✔✔the transfer of risk
✔✔Risk = - ✔✔uncertainty/possibility of a loss
✔✔What are the types of risk? - ✔✔Speculative Risk
Pure Risk
✔✔Speculative Risk - ✔✔chance of loss or gain; not insurable
✔✔Pure risk - ✔✔chance of loss only; insurable
✔✔What is exposure? - ✔✔risks for which the insurance company would be liable
✔✔What is a peril? - ✔✔a cause of loss
the "what?"
✔✔What is a hazard? - ✔✔something that causes an increase in the chance of loss
✔✔Physical Hazard - ✔✔The hazard can be seen
✔✔Moral Hazard - ✔✔a belief that intentionally causing a loss is acceptable
✔✔Morale Hazard - ✔✔carelessness
✔✔What are the methods of handling risk? - ✔✔STARR
- Sharing
- Transfer
- Avoidance
- Retention
- Reduction
