PA LIFE ACCIDENT HEALTH STUDY GUIDE 2025/2026
QUESTIONS WITH SOLUTIONS RATED A+
✔✔Immediate Annuity - ✔✔What type of annuity provides an individual with an income
within a month or up to 12 months ?
✔✔Deferred Annuity - ✔✔What type of annuity does not provide an immediate income
and the owner chooses the amount and frequency of payments with funds able to be
withdrawn?
✔✔Fixed Annuity - ✔✔What type of annuity has values guaranteed against loss and
never be less than what is paid into the contract?
✔✔Variable Annuity - ✔✔What type of annuity has the potential to keep pace with
inflation because they are supported by stocks and bonds and have an investment risk?
✔✔Equity Indexed Annuity - ✔✔What type of annuity is also tax-deferred and its interest
is linked to the S&P 500 index?
✔✔Waiver of Premium - ✔✔What type of disability rider waives the premium if the
insured is 100 percent disabled with a 6 month waiting period?
✔✔Disability Income - ✔✔What type of disability rider replaces lost income if one
cannot work and the premiums are waived?
✔✔Payor Benefit Life - ✔✔What type of disability rider is used for juvenile policies?
✔✔Total Disability - ✔✔Type of disability insurance defined as the inability to perform
any duties of own occupation
✔✔Partial Disability - ✔✔Type of disability insurance defined as one can perform some
but not all essential duties of their occupation
✔✔Presumptive Disability - ✔✔Type of disability insurance defined as the loss of 2
limbs, total and permanent blindness, total loss of speech, and loss of hearing
✔✔Residual Disability - ✔✔Type of disability insurance defined as one that is paid when
insured cannot perform the same duties as before based on income lost
✔✔Recurrent Disability - ✔✔Type of disability insurance defined as one for employees
who return to work but become disabled again within 90 days
✔✔Social Security Disability - ✔✔Type of disability insurance defined as requiring 40
quarters completed with a 5 month waiting period, ceases when retirement starts
, ✔✔Home Health Care - ✔✔Type of long term care that refers to skilled medical and
therapy services performed in individuals home by visiting home health aids
✔✔Adult Day Care - ✔✔Type of long term care that provides company, supervision,
along with social and recreational support for people whose grown children care for
them at home but work during the day
✔✔Respite Care - ✔✔Type of long term care that is similar to hospice care where
professionals care for someone who temporarily in order to give a few days rest to
family members who provide care
✔✔Assisted Living - ✔✔Type of long term care for people who need assistance from
time to time but can live independently compared to those who receive custodial care
✔✔Skilled Care - ✔✔Level of long term care that requires 24/7 nursing by a medical
professional
✔✔Intermediate Care - ✔✔Level of long term care that requires occasional nursing or
rehab by medical professionals
✔✔Custodial Care - ✔✔Level of long term care that requires help with Activities of Daily
Living not performed by a medical professional
✔✔Hospital Indemnity - ✔✔Type of limited health policy that pays a flat dollar amount
as a daily benefit for each day the insured is hospitalized as an inpatient where payment
is made directly to insured not the hospital
✔✔Accident Only - ✔✔Type of limited health policy that only covers accident as peril
and exclude any type of sickness or disease
✔✔Specified or Dread Disease - ✔✔Type of limited health policy that were developed to
cover one or one type of catastrophic illness in the policy such as cancer or heart
disease
✔✔Vision Care - ✔✔Type of limited health policy that covers routine eye care and vision
correction
✔✔Hearing Insurance - ✔✔Type of limited health policy that covers hearing exams and
some or all cost of hearing aids
✔✔Credit Disability Insurance - ✔✔Type of limited health policy where group policy has
retailer as master policyowner and the debtors are group members. If debtor becomes
disabled then policy benefit is paid to creditor
QUESTIONS WITH SOLUTIONS RATED A+
✔✔Immediate Annuity - ✔✔What type of annuity provides an individual with an income
within a month or up to 12 months ?
✔✔Deferred Annuity - ✔✔What type of annuity does not provide an immediate income
and the owner chooses the amount and frequency of payments with funds able to be
withdrawn?
✔✔Fixed Annuity - ✔✔What type of annuity has values guaranteed against loss and
never be less than what is paid into the contract?
✔✔Variable Annuity - ✔✔What type of annuity has the potential to keep pace with
inflation because they are supported by stocks and bonds and have an investment risk?
✔✔Equity Indexed Annuity - ✔✔What type of annuity is also tax-deferred and its interest
is linked to the S&P 500 index?
✔✔Waiver of Premium - ✔✔What type of disability rider waives the premium if the
insured is 100 percent disabled with a 6 month waiting period?
✔✔Disability Income - ✔✔What type of disability rider replaces lost income if one
cannot work and the premiums are waived?
✔✔Payor Benefit Life - ✔✔What type of disability rider is used for juvenile policies?
✔✔Total Disability - ✔✔Type of disability insurance defined as the inability to perform
any duties of own occupation
✔✔Partial Disability - ✔✔Type of disability insurance defined as one can perform some
but not all essential duties of their occupation
✔✔Presumptive Disability - ✔✔Type of disability insurance defined as the loss of 2
limbs, total and permanent blindness, total loss of speech, and loss of hearing
✔✔Residual Disability - ✔✔Type of disability insurance defined as one that is paid when
insured cannot perform the same duties as before based on income lost
✔✔Recurrent Disability - ✔✔Type of disability insurance defined as one for employees
who return to work but become disabled again within 90 days
✔✔Social Security Disability - ✔✔Type of disability insurance defined as requiring 40
quarters completed with a 5 month waiting period, ceases when retirement starts
, ✔✔Home Health Care - ✔✔Type of long term care that refers to skilled medical and
therapy services performed in individuals home by visiting home health aids
✔✔Adult Day Care - ✔✔Type of long term care that provides company, supervision,
along with social and recreational support for people whose grown children care for
them at home but work during the day
✔✔Respite Care - ✔✔Type of long term care that is similar to hospice care where
professionals care for someone who temporarily in order to give a few days rest to
family members who provide care
✔✔Assisted Living - ✔✔Type of long term care for people who need assistance from
time to time but can live independently compared to those who receive custodial care
✔✔Skilled Care - ✔✔Level of long term care that requires 24/7 nursing by a medical
professional
✔✔Intermediate Care - ✔✔Level of long term care that requires occasional nursing or
rehab by medical professionals
✔✔Custodial Care - ✔✔Level of long term care that requires help with Activities of Daily
Living not performed by a medical professional
✔✔Hospital Indemnity - ✔✔Type of limited health policy that pays a flat dollar amount
as a daily benefit for each day the insured is hospitalized as an inpatient where payment
is made directly to insured not the hospital
✔✔Accident Only - ✔✔Type of limited health policy that only covers accident as peril
and exclude any type of sickness or disease
✔✔Specified or Dread Disease - ✔✔Type of limited health policy that were developed to
cover one or one type of catastrophic illness in the policy such as cancer or heart
disease
✔✔Vision Care - ✔✔Type of limited health policy that covers routine eye care and vision
correction
✔✔Hearing Insurance - ✔✔Type of limited health policy that covers hearing exams and
some or all cost of hearing aids
✔✔Credit Disability Insurance - ✔✔Type of limited health policy where group policy has
retailer as master policyowner and the debtors are group members. If debtor becomes
disabled then policy benefit is paid to creditor
