Pennsylvania Life, Accident and Health Exam (PA-Life-Accident-and-Health) Free Practice Test

Question 1

The total premium paid by a life policy owner for one policy year is

A. based on the assumption that the insured will pay policy premiums at the end of the policy year in one payment; if paid earlier in the policy year, a discount will be allowed.

B. greater if the premium is paid semiannually rather than annually.

C. the same regardless of the frequency of payment.

D. less when paid quarterly than if paid semiannually.

Correct Answer: B

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Question 2

Medicare Part B insurance is partially funded by

A. user premiums.

B. employer contributions.

C. Social Security taxes.

D. employment taxes.

Correct Answer: A

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Question 3

Which of the following best describes how insurers predict the chance of loss?

A. average disability occurrences

B. the law of large numbers

C. insurable interest

D. current census table

Correct Answer: B

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Question 4

The Pennsylvania Insurance Department has both the right and the duty to complete which task in regards to licensed insurers?

A. make periodic financial audits and market conduct examinations

B. provide financial rehabilitation

C. modify Insurance contract conditions

D. modify statute law to accompany contract conditions

Correct Answer: A

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Question 5

Which term describes an insurer operating in the state in which it is incorporated?

A. participating

B. domestic

C. foreign

D. resident

Correct Answer: B

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Question 6

The type of annuity in which all payments cease upon the death of an annuitant is referred to as a

A. life annuity.

B. variable annuity.

C. terminal annuity.

D. equity annuity.

Correct Answer: A

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Question 7

Falsifying the terms, benefits, advantages, or conditions of an insurance policy is an example of which of the following?

A. Coercion

B. Misrepresentation

C. Forgery

D. Concealment

Correct Answer: B

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Question 8

Which is NOT a characteristic of a major medical expense policy?

A. Coinsurance

B. Elimination periods

C. Stop loss limits

D. Deductibles

Correct Answer: B

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Insurance Licensing Pennsylvania Life, Accident and Health (PA-Life-Accident-and-Health) Free Practice Test