Free Pennsylvania Life & Health Insurance License Exam Practice Test

Sample PA L&H practice questions

Try a few representative questions below. Each includes the correct answer and a short explanation — the same style you'll see in the full practice test.

1. Question 1Life Insurance Riders

   A Pennsylvania resident obtains a life insurance policy with a face amount of $500,000. The policy includes a Guaranteed Insurability Rider, allowing the purchase of additional insurance at specified future dates without medical examination. If the insured exercises this rider on their 30th birthday to purchase an additional $100,000 of coverage, and later exercises it again on their 35th birthday to purchase an additional $150,000, what is the maximum total face amount the insured can eventually purchase under this rider, assuming no other provisions or limitations apply?

   • A.The rider allows for the purchase of additional insurance equal to the original face amount or a specified amount, whichever is less, on each option date. The maximum additional coverage is not explicitly capped by a total, but by the terms of each option.(Correct)
   • B.The rider allows the purchase of additional insurance up to the original face amount, so a maximum of $500,000 in total additional coverage.
   • C.The rider's exercise amounts ($100,000 + $150,000) are cumulative, and the total additional coverage is capped at $250,000.
   • D.The rider typically allows for multiple purchases up to a certain percentage of the original face amount at each option date, not a fixed total.

   Explanation

   Guaranteed Insurability Riders typically allow the purchase of additional insurance on specified dates without a medical exam, up to a certain limit. This limit is often tied to the original face amount or a specific dollar amount, whichever is less, on each option date. The rider's intent is to offer flexibility, and the total additional coverage isn't usually a simple cumulative cap of the original amount, but rather governed by the terms of each exercise of the rider.

2. Question 2Disability Income Underwriting

   An applicant for a disability income policy in Pennsylvania provides a medical history indicating occasional migraines controlled by medication. The underwriting process reveals that the applicant's occupation involves significant stress and frequent travel. Which of the following underwriting actions is MOST likely to be taken by the insurer?

   • A.Issue the policy with a waiver of premium rider to cover potential disability from migraines.
   • B.Issue the policy with an exclusion rider for migraines or a higher premium due to the combined risk factors.(Correct)
   • C.Decline the application due to the pre-existing condition and occupational hazards.
   • D.Issue the policy with a standard premium and no exclusions.

   Explanation

   Underwriters assess risk based on health history and occupation. Occasional migraines, even if controlled, coupled with a high-stress, high-travel occupation, present an increased risk for disability. Insurers often mitigate this by issuing the policy with an exclusion rider for the specific condition (migraines) or by charging a higher premium to compensate for the elevated risk.

3. Question 3Disability Income Insurance

   A business owner in Pennsylvania has a Key Person disability insurance policy on their top salesperson. The policy has a monthly benefit of $8,000 and a 30-day waiting period. If the salesperson becomes totally disabled and is unable to work for 90 days, how much will the business owner receive in benefits?

   • A.$24,000
   • B.$16,000(Correct)
   • C.$0
   • D.$8,000

   Explanation

   The waiting period (elimination period) is the time before benefits begin. With a 30-day waiting period, benefits are paid for the days of disability exceeding 30. The salesperson was disabled for 90 days, so benefits are paid for 90 - 30 = 60 days. The monthly benefit is $8,000, so the total payout is (60 days / 30 days per month) * $8,000 = 2 * $8,000 = $16,000.

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