Pennsylvania Life & Health Insurance Exam Practice Questions Review

A series of practice questions and answers for Pennsylvania Life and Health Insurance exam preparation.

What is the administrative cost per capita in group health coverage compared to individual coverage?

Lower

What do fixed annuities provide all except for?

Hedge against inflation

What is NOT a requirement for a manager’s/exclusive general agent license?

Be responsible for 25% of total commissions

In what capacity are premiums collected and dispersed?

Fiduciary capacity

What is the life insurance settlement option known as straight life?

Life income

What is the tax status of Key Person Disability Income benefits to the business?

Not taxable to the business

What is referred to as offering inducements not in the policy?

Rebating

What is the Continuing Education requirement for PA producers?

24 hours (3 in ethics)

What does a fixed annuity pay?

Higher of guaranteed or current rate

Under HIPAA, how do eligible employees receive coverage?

Guaranteed basis

Who does the group health probationary period apply to?

Employees who join after the effective date

What is a noncancellable policy feature that does NOT apply?

Insurer may terminate only at renewal

How can one prevent lapse in a Universal Life policy?

Adjustable premium

Which Medicare plan requires a Primary Care Physician?

Part C (Medicare Advantage)

Give an example of a competent party.

Applicant with a prior felony conviction

What is the correct method to change an insurance application?

Line through, correct, and initial

Are POS plan self-referral costs typically more or less expensive?

More expensive

How is material misrepresentation defined?

Statement affecting underwriting decision

What policy allows withdrawals or partial surrenders?

Universal Life

What happens at the end of a 10-year renewable term policy?

Renew at higher premium

What is NOT considered unfair or deceptive in insurance?

Controlled business

In group health insurance, who is considered the policyholder?

The employer

What does a hospital indemnity policy pay?

Benefit per day of hospitalization

What does a producer with a suspended license still receive?

All earned commissions

What does cash value fluctuating monthly indicate?

Variable policy

What is the employer’s group policy called?

Master contract

What is NOT considered a cost associated with death?

Family vacation

What is the civil penalty for the first violation of the PA Insurance Fraud Act?

$10,000

Within how many days must an insurer notify the Commissioner of termination?

30 days

What is the ethics continuing education requirement?

3 hours

What is true about nonforfeiture values?

Required by law

How is accidental bodily injury different from accidental means?

It is broader

What kind of Medicare policy has network restrictions and lower premiums?

Medicare SELECT

What are optional LTC benefits?

Available for extra premium

What provision ensures compliance with state law?

Conformity with State Statutes

What type of term life insurance is return-of-premium?

Level term

What does an accident-only health policy pay for?

Only accident-related costs

Which law requires disclosure of consumer reporting agency information?

Fair Credit Reporting Act

What dental expense plan feature is not included in medical plans?

Diagnostic and preventive care