Pennsylvania Life, Accident and Health Exam Version: Demo [ Total Questions: 10] Web: www.certsout.com Email: support@certsout.com Insurance Licensing PA-Life-Accident-and- Health IMPORTANT NOTICE Feedback We have developed quality product and state-of-art service to ensure our customers interest. If you have any suggestions, please feel free to contact us at feedback@certsout.com Support If you have any questions about our product, please provide the following items: exam code screenshot of the question login id/email please contact us at and our technical experts will provide support within 24 hours. support@certsout.com Copyright The product of each order has its own encryption code, so you should use it independently. Any unauthorized changes will inflict legal punishment. We reserve the right of final explanation for this statement. Insurance Licensing - PA-Life-Accident-and-Health Certs Exam 1 of 7 Pass with Valid Exam Questions Pool A. B. C. D. A. Category Breakdown Category Number of Questions Health Insurance Basics 1 General Insurance Concepts 4 Disability Income and Medical Plans 1 Life Insurance Basics 1 Pennsylvania Insurance Regulations 3 TOTAL 10 Question #:1 - [Health Insurance Basics] In determining whether a pre-existing condition applies, the enrollee CANNOT have more than how many days" gap in Health insurance? 63 65 70 60 Answer: A Explanation In determining whether apre-existing condition exclusionapplies, Pennsylvania follows federal standards established under HIPAA and reinforced by ACA provisions. An enrolleecannot have a gap in creditable health coverage of more than 63 days. If the gap exceeds 63 days, prior coverage may no longer be credited toward eliminating or reducing a pre-existing condition limitation. Pennsylvania-approved insurance education materials emphasize that creditable coverage includes most group and individual health plans, Medicare, Medicaid, and other qualifying coverage types. Maintaining continuous coverage is critical to preserving consumer protections. A lapse of63 days or fewerallows prior coverage to count without penalty, while exceeding that threshold resets the pre-existing condition evaluation. The alternative answers—60, 65, and 70 days—do not reflect the legally established standard used in Pennsylvania and federal insurance regulation. The63-day ruleis a key exam concept and consumer protection mechanism designed to encourage continuous health coverage. Therefore,63 daysis the correct and fully verified answer. Question #:2 - [General Insurance Concepts] In Pennsylvania, a provision that protects a policyowner from a misrepresentation caused by an innocent mistake on the application after 2 years is a negligence provision. Insurance Licensing - PA-Life-Accident-and-Health Certs Exam 2 of 7 Pass with Valid Exam Questions Pool B. C. D. A. B. C. D. an Incontestability provision. a nonforfeiture provision. an elimination provision. Answer: B Explanation In Pennsylvania, theIncontestability provisionprotects a policyowner from policy cancellation due to misrepresentations made innocently on the application after a specified period, typicallytwo years. This provision is mandatory in life and health insurance policies under Pennsylvania insurance regulations and is designed to provide long-term security to policyowners. Once the policy has been in force for two years, the insurer may no longer contest the policy based on application misstatements unless fraud was committed. Innocent errors, omissions, or misunderstandings cannot be used to void coverage after this period. This protection ensures that beneficiaries and insured individuals are not unfairly denied benefits after years of premium payments. The other options are incorrect. A negligence provision is not a standard insurance clause. A nonforfeiture provision deals with policy values when a policy lapses. An elimination provision refers to waiting periods before benefits begin. Therefore, according to Pennsylvania Life, Accident, and Health Insurance licensing materials, the correct and verified answer isIncontestability provision, optionB. Question #:3 - [Disability Income and Medical Plans] What provision allows the insured a period of time in which to review a newly-issued insurance policy and. if dissatisfied for any reason, return it for a full refund of the premium? right to examine grace period probationary period elimination period Answer: A Explanation Theright to examine provision, commonly referred to as thefree-look period, is a mandatory consumer protection feature in Pennsylvania insurance policies. This provision allows the insured a specific period— typically 10 days for life and health policies—during which they may review a newly issued policy and return it for afull refund of the premiumif dissatisfied for any reason. Insurance Licensing - PA-Life-Accident-and-Health Certs Exam 3 of 7 Pass with Valid Exam Questions Pool A. B. C. D. A. Pennsylvania insurance regulations emphasize transparency and consumer protection, ensuring that policyholders have adequate time to evaluate policy terms, exclusions, riders, and benefits. During the right- to-examine period, the policy is considered issued but not fully accepted. If returned within the allowed timeframe, the policy is voided as if it never existed, and the insurer must refund all premiums paid. The other options listed are incorrect. A grace period applies to late premium payments, not policy review. A probationary period relates to waiting periods before certain benefits become payable. An elimination period refers to the time between disability onset and benefit payment in disability policies. Accordingly, under Pennsylvania Life, Accident, and Health Insurance provisions, theright to examineis the correct answer. Question #:4 - [Life Insurance Basics] A group sponsor is considering a life insurance plan for its members. Which underwriting characteristic is most likely to influence the decision to proceed with the plan? Customized coverage for each member Higher premiums for older members Mandatory probationary periods No individual medical exams required Answer: D Explanation When a group sponsor considers offering agroup life insurance plan, one of the most influential underwriting characteristics is thatindividual medical examinations are generally not required. Pennsylvania Life Insurance guidelines explain that group underwriting focuses on the overall characteristics of the group rather than the health status of individual members. This simplified underwriting approach makes group life insurance attractive to employers and associations because it reduces administrative burden, speeds up enrollment, and allows broader access to coverage. The risk is spread across a large pool, enabling insurers to issue coverage without individual medical evaluations. The other options are inconsistent with group insurance principles. Group plans are standardized, not customized for each member. Premiums are usually based on group characteristics rather than individual age- related pricing. Mandatory probationary periods may exist but are not the primary factor influencing the decision to proceed with a plan. Therefore,no individual medical exams requiredis the correct and verified answer based on Pennsylvania Life, Accident, and Health Insurance study materials. Question #:5 - [Pennsylvania Insurance Regulations] To avoid tax consequences, a rollover from a Traditional IRA to another IRA MUST be done within Insurance Licensing - PA-Life-Accident-and-Health Certs Exam 4 of 7 Pass with Valid Exam Questions Pool A. B. C. D. A. B. C. D. 90 days. 45 days. 60 days. 0 days. Answer: C Explanation According to Pennsylvania Life Insurance and retirement planning study materials, a rollover from aTraditional IRA to another IRA must be completed within 60 daysto avoid tax consequences. If the funds are not deposited into the new IRA within this timeframe, the distribution is considered taxable income and may also be subject to an early withdrawal penalty if the account holder is under age 59½. The 60-day rollover rule applies when the account owner takes possession of the funds before redepositing them. Pennsylvania insurance licensing materials emphasize this rule as a critical compliance requirement for agents advising clients on retirement planning and tax avoidance strategies. Failure to meet the deadline converts the rollover into a permanent distribution. Other timeframes listed are incorrect. Ninety days and forty-five days are not recognized rollover periods under Pennsylvania or federal retirement standards, and zero days would only apply to a trustee-to-trustee transfer, which is not classified as a rollover. Therefore, the correct and verified answer under Pennsylvania Life, Accident, and Health Insurance guidelines is60 days. Question #:6 - [Pennsylvania Insurance Regulations] What does the annuity certain payment option guarantee? The highest monthly income A higher rate of return Payments will continue until all of the funds are exhausted Benefits will be paid to the beneficiary for the remainder of their life Answer: C Explanation Theannuity certain payment optionguarantees that payments will continue for a specified period or until all funds in the annuity are exhausted. This option ensures that the annuitant or designated beneficiary receives payments for the entire guaranteed period, even if the annuitant dies before the period ends. Insurance Licensing - PA-Life-Accident-and-Health Certs Exam 5 of 7 Pass with Valid Exam Questions Pool A. B. C. D. A. B. C. D. Annuity certain options are commonly structured as “10-year certain” or “20-year certain” contracts. If the annuitant passes away during the guaranteed period, remaining payments are made to the beneficiary until the end of the term. This provides certainty and predictability of income distribution. The other options are incorrect. The highest monthly income is provided by a life-only option. A higher rate of return is not guaranteed by any payout option. Benefits paid for the remainder of the beneficiary’s life describe a life income option, not an annuity certain. Therefore, the correct and verified answer under Pennsylvania Life, Accident, and Health Insurance principles isC. Payments will continue until all of the funds are exhausted. Question #:7 - [General Insurance Concepts] All of the following statements about aleatory contracts are true EXCEPT they may be interpreted as a form of gambling. there are cases where the insurer pays nothing. the insured and insurer contribute equally to they contract. if a loss occurs, the insured's premium is small in relation to the amount the insurer pays. Answer: C Explanation Aleatory contracts, such as insurance policies, are characterized by an unequal exchange of value. The amount the insured pays in premiums is small in relation to the amount the insurer pays in the event of a loss, which may be much greater. Therefore, the statement that the insured and insurer contribute equally is false Question #:8 - [Pennsylvania Insurance Regulations] Who of the following is required to be licensed as an insurance producer? An individual selling a policy for commission. An officer or director of an Insurer. An insurer administering a group plan. An underwriter at an insurer. Answer: A Explanation Insurance Licensing - PA-Life-Accident-and-Health Certs Exam 6 of 7 Pass with Valid Exam Questions Pool A. B. C. D. A. In Pennsylvania, an insurance producer license is required for any individual who sells, solicits, or negotiates insurance policies for compensation, including commissions. Pennsylvania insurance regulations define a producer as someone who is directly involved in the transaction of insurance with the public. Officers or directors of an insurer are not required to be licensed unless they are personally engaged in selling or soliciting insurance. Insurers administering group plans perform administrative functions and do not act as producers. Underwriters evaluate risk and determine policy terms but do not sell insurance to consumers, so they are also exempt from producer licensing requirements. Pennsylvania-approved licensing materials clearly state that receiving commission in exchange for selling insurance triggers the requirement for licensure. Therefore, the correct and verified answer is option A. Question #:9 - [General Insurance Concepts] Which of the following represents a reduced paid-up nonforfeiture option? Further premiums must be paid on the reduced policy. The policy will have a decreased face amount A full share of expense loading must be included in the premium on the reduced coverage. The new face amount is the same as the original policy. Answer: B Explanation In Pennsylvania Life Insurance policies, areduced paid-up nonforfeiture optionallows the policyowner to stop paying premiums while maintaining permanent coverage with areduced face amount. The existing cash value is used to purchase a fully paid-up policy with no future premium requirements. Under this option, the death benefit is lower than the original policy, but coverage remains in force for the insured’s lifetime. This distinguishes it from extended term insurance, which keeps the same face amount but only for a limited period. Pennsylvania-approved study guides emphasize that reduced paid-up insurance eliminates the need for further premiums. The other answer choices are incorrect. Further premiums are not required, expense loading is not re-applied, and the new face amount is not the same as the original. Therefore, the defining characteristic of reduced paid- up insurance is adecreased face amount, making optionBthe correct and verified answer according to Pennsylvania Life, Accident, and Health Insurance documentation. Question #:10 - [General Insurance Concepts] For the insured, what changes are made to both coverage and premiums under the Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage in comparison to the original group coverage? Out-of-pocket expenses increase, while coverage decreases. Insurance Licensing - PA-Life-Accident-and-Health Certs Exam 7 of 7 Pass with Valid Exam Questions Pool B. C. D. Coverage and premium expenses remain the same. Coverage remains the same, while premiums increase. Out-of-pocket expenses remain the same, while coverage decreases. Answer: C Explanation Under theConsolidated Omnibus Budget Reconciliation Act (COBRA), insured individuals who lose group health coverage due to certain qualifying events are allowed to continue the same group coverage for a limited period. Pennsylvania Life and Health Insurance education materials emphasize that COBRA continuation coverage must beidenticalto the coverage provided under the original group health plan. While coverage remains unchanged, the cost to the insured increases significantly. Under COBRA, the insured may be required to pay up to 102% of the total premium, which includes both the employee and employer portions plus an administrative fee. This represents a substantial increase compared to the employee’ s prior contribution under the employer-sponsored plan. COBRA does not reduce benefits or alter out-of-pocket expenses related to deductibles or copayments. The only change is the shift in premium responsibility from employer-supported coverage to full premium payment by the insured. Therefore, the correct and verified answer is option C: coverage remains the same, while premiums increase. About certsout.com certsout.com was founded in 2007. We provide latest & high quality IT / Business Certification Training Exam Questions, Study Guides, Practice Tests. We help you pass any IT / Business Certification Exams with 100% Pass Guaranteed or Full Refund. Especially Cisco, CompTIA, Citrix, EMC, HP, Oracle, VMware, Juniper, Check Point, LPI, Nortel, EXIN and so on. View list of all certification exams: All vendors We prepare state-of-the art practice tests for certification exams. You can reach us at any of the email addresses listed below. 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