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PA Life, Accident, & Health Insurance Exam Questions and Answers Latest Version 100% Pass
What type of insurance provides benefits if the insured becomes disabled and cannot work?✔✔ Disability income insurance
How does accidental death and dismemberment insurance differ from basic life insurance?✔✔ It pays benefits only if death or injury results from an accident
What does the term "premium" mean in an insurance policy?✔✔ The amount the insured pays to keep the policy active
What is a beneficiary in a life insurance policy?✔✔ The person or entity designated to receive the policy’s proceeds upon the insured’s death
What is meant by the term "policyowner"?✔✔ The person who owns the insurance policy and has the rights to make changes
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Why is a waiting period included in some health insurance policies?✔✔ To delay benefit payments for a set time after a claim event
What does "coinsurance" require from the insured?✔✔ Sharing a percentage of covered medical costs after the deductible is met
What is the difference between term life insurance and whole life insurance?✔✔ Term provides coverage for a set period; whole life provides lifetime coverage with a cash value
What is the purpose of the "incontestability clause"?✔✔ To prevent the insurer from voiding the policy after it has been in force for a certain time
What is a pre-existing condition exclusion?✔✔ A clause that limits or excludes coverage for health problems that existed before the policy started
Why would someone choose a high deductible health plan (HDHP)? 2 / 4
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✔✔ To have lower premiums and qualify for a health savings account (HSA)
What is the function of the "coordination of benefits" provision?✔✔ To avoid duplication of payments when multiple insurance policies cover the same loss
What type of insurance pays a set amount per day while hospitalized?✔✔ Hospital indemnity insurance
How does group health insurance differ from individual health insurance?✔✔ It is usually offered through an employer and covers multiple people under one contract
What is the purpose of long-term care insurance?✔✔ To cover expenses related to extended nursing or personal care not covered by regular health insurance
What is the "elimination period" in disability insurance?✔✔ The waiting period before benefits begin after a disability occurs
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How does a health maintenance organization (HMO) manage care?✔✔ By requiring use of a primary care physician and emphasizing preventive services
What is meant by "cash value" in a whole life insurance policy?✔✔ The savings component that grows over time and can be borrowed against
What is an insurance rider?✔✔ An add-on to a policy that provides additional coverage or modifies terms
What type of policy would provide benefits only if an injury happens in an accident?✔✔ Accident-only insurance
Why is it important for an insured to disclose all material facts when applying for insurance?✔✔ Because failure to disclose can lead to denial of claims or policy cancellation
What does "nonforfeiture option" refer to in life insurance?✔✔ Choices that allow the policyowner to retain some benefits if premium payments stop
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