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PA LIFE, ACCIDENT, & HEALTH INSURANCE
EXAM ACTUAL QUESTIONS WITH VERIFIED
SOLUTIONS
The earliest that coverage could start would be-correct-answer-the day of
application, assuming the applicant paid the first premium, had no conditions to
fulfill, and had not lied on the application.
Coverage can NEVER begin unless-correct-answer-the premium has been paid.
The HIV consent form states that the results of an HIV test will-correct-answer-
only be shared with certain individuals, such as the underwriter.
Life insurers may discriminate-correct-answer-based upon physical hazards (age
and health) of the applicant.
The company underwriter determines the-correct-answer-final rating
classification, not the producer.
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A preferred risk is likely to receive-correct-answer-a premium discount.
A standard risk is-correct-answer-one with an average life span. Most applicants
are standard risks.
A rated policy is one-correct-answer-issued to a substandard risk with dangerous
hobbies or health problems.
An increasing term policy's-correct-answer-limits increase each year. Sometimes
called a return-of-premium policy.
Term insurance is-correct-answer-renewable without a physical examination, up
to a certain age.
Term insurance may be converted to-correct-answer-whole life, but not the
reverse
Conversion is based on-correct-answer-the insured's current age.
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Convertible term is-correct-answer-convertible based upon the current or
attained age of the insured.
On term life insurance,-correct-answer-the re-entry option is contingent upon the
insured passing a physical exam.
In a level term policy,-correct-answer-the premium and the amount of coverage
are level throughout the term.
On an annual renewable level term policy,-correct-answer-the premium will
increase every year, although the face amount will remain the same.
The face amount of a mortgage protection life insurance policy will-correct-
answer-decrease at the same rate as the mortgage balance declines.
It is the face amount that decreases on a decreasing term policy,-correct-answer-
not the premium.
PA LIFE, ACCIDENT, & HEALTH INSURANCE
EXAM ACTUAL QUESTIONS WITH VERIFIED
SOLUTIONS
The earliest that coverage could start would be-correct-answer-the day of
application, assuming the applicant paid the first premium, had no conditions to
fulfill, and had not lied on the application.
Coverage can NEVER begin unless-correct-answer-the premium has been paid.
The HIV consent form states that the results of an HIV test will-correct-answer-
only be shared with certain individuals, such as the underwriter.
Life insurers may discriminate-correct-answer-based upon physical hazards (age
and health) of the applicant.
The company underwriter determines the-correct-answer-final rating
classification, not the producer.
,2|Page
A preferred risk is likely to receive-correct-answer-a premium discount.
A standard risk is-correct-answer-one with an average life span. Most applicants
are standard risks.
A rated policy is one-correct-answer-issued to a substandard risk with dangerous
hobbies or health problems.
An increasing term policy's-correct-answer-limits increase each year. Sometimes
called a return-of-premium policy.
Term insurance is-correct-answer-renewable without a physical examination, up
to a certain age.
Term insurance may be converted to-correct-answer-whole life, but not the
reverse
Conversion is based on-correct-answer-the insured's current age.
, 3|Page
Convertible term is-correct-answer-convertible based upon the current or
attained age of the insured.
On term life insurance,-correct-answer-the re-entry option is contingent upon the
insured passing a physical exam.
In a level term policy,-correct-answer-the premium and the amount of coverage
are level throughout the term.
On an annual renewable level term policy,-correct-answer-the premium will
increase every year, although the face amount will remain the same.
The face amount of a mortgage protection life insurance policy will-correct-
answer-decrease at the same rate as the mortgage balance declines.
It is the face amount that decreases on a decreasing term policy,-correct-answer-
not the premium.
