Prep RetentionInsurance Exam Prep

This practice exam is for people who already have insurance training or experience. It does not provide occupational training, does not lead to employment, a credential or an assessment, and does not replace occupational training.

Pennsylvania life insurance exam flashcards

Last updated

The PSI outline for the Pennsylvania Life exam (Series 16-01) does not have a separate state law part. Pennsylvania statutes are mixed into the sections, so a grace period or free look question can show up next to a whole life question. [1] These flashcards cover the Pennsylvania rules the outline names. Each answer points to the law it comes from, so you can check it yourself. "ICL" is Pennsylvania's Insurance Company Law of 1921 and "IDA" is the Insurance Department Act of 1921.

Read the question, say your answer out loud, then check the back.

Policy provisions (outline section 5.0)

1. How long is the grace period a Pennsylvania life policy must give?
Thirty days or one month, for any premium after the first year. The policy stays in full force during the grace period. (ICL 410(b)) [2]

2. What interest can a company charge for paying during the grace period?
At the company's option, no more than eight percent a year for the days of grace used. (ICL 410(b)) [2]

3. When does a Pennsylvania life policy become incontestable?
After it has been in force during the insured's lifetime for two years from its date of issue, except for nonpayment of premiums. (ICL 410(c)) [2]

4. What happens if the insured's age was misstated?
The amount payable is what the premium would have bought at the correct age. (ICL 410(e)) [2]

5. How long after a default can the policyholder ask to reinstate?
Within three years from the date of default, with evidence of insurability the company accepts and payment of overdue premiums with interest, unless the policy was surrendered or the extension period ran out. (ICL 410(k)) [2]

6. When must a policy have a loan value?
At any time after three full years' premiums have been paid, while no premium is in default past the grace period. This does not apply to term insurance. (ICL 410(h)) [2]

7. When must a claim be settled after the insured dies?
On receipt of due proof of death. (ICL 410(l)) [2]

8. How far back can a policy be dated?
No more than six months before the original application was made. A provision that backdates further is prohibited. (ICL 411(c)) [3]

9. What is the shortest time a policy may allow to file a lawsuit?
A policy cannot limit the time to sue to less than two years after the cause of action arises. (ICL 411(b)) [3]

Free look (sections 5.0 and 6.0)

10. What is the free look on a regular individual fixed dollar life policy?
At least 10 days from delivery, with the premium refunded. (ICL 410D(a)(1)) [4]

11. What if the new policy replaces one with the same insurer or insurer group?
At least 45 days. (ICL 410D(a)(2)) [4]

12. What if it replaces a policy from a different insurer?
At least 20 days. (ICL 410D(a)(3)) [4]

13. What is the free look on an individual fixed dollar annuity that is not a replacement?
At least 10 days from delivery, with the payment refunded. (ICL 410E(a)(1)) [5]

14. If a policy is mailed, when does the free look clock start?
On the date the insurer mails it. If a representative hands it over, on the date of physical delivery. (ICL 404-A(a)) [6]

Insurable interest and beneficiaries (section 3.0 and 5.0)

15. Can an employer insure an employee's life without the employee signing an application?
Yes, but it must tell the employee in writing that it plans to buy the policy and get the employee's prior written consent. (ICL 412) [7]

16. Who must have an insurable interest when someone insures another person's life?
The beneficiary named in the policy. (ICL 412) [7]

17. A Pennsylvania resident names a spouse as beneficiary, then divorces and dies. Which law covers this?
20 Pa.C.S. 6111.2, on the effect of divorce or pending divorce on a beneficiary designation. It also covers a death during divorce proceedings once grounds have been established. (20 Pa.C.S. 6111.2(a)) [8]

Dividends (section 5.0)

18. On a participating policy, by when must the company start determining the policy's share of divisible surplus each year?
Not later than the end of the third policy year. The person entitled to choose can take the dividend in cash or under another dividend option in the policy. (ICL 410(f)) [2]

Regulation (section 1.0)

19. What is twisting?
Making a misrepresentation or incomplete comparison of policies to get someone to lapse, forfeit or surrender insurance and buy a policy with another company. (ICL 348) [9]

20. How long can a Pennsylvania temporary producer license last?
No more than 180 days, and it cannot be transferred. (IDA 609-A(b)) [10]

21. Who can get a temporary license?
Among others, a surviving spouse or court-appointed representative of a licensee who dies or becomes disabled, and the designee of a licensee who enters active military service. (IDA 609-A(a)) [10]

22. How long is a producer license issued for?
A period not to exceed two years. It is nontransferable. (IDA 607-A) [11]

23. How much continuing education is needed to renew?
24 credit hours each two-year license period, with at least 3 on ethics. Up to 24 extra hours can carry forward to the next period. (IDA 608-A) [12]

24. Can you use a business name other than the one on your license?
Only after notifying the commissioner in writing before you use the fictitious name. (IDA 607-A(1)) [11]

How to use these cards

Ready for full questions? Take the free Pennsylvania Life practice test.

Prep Retention is independent and is not affiliated with PSI or the state.

Sources

Laws and exam documents quoted as of October 2026.

  1. PSI, Pennsylvania Life outline, Series 16-01 (effective 3/1/2026): https://proctor2.psionline.com/media/programs/PAINS/16-01xx.pdf
  2. Insurance Company Law of 1921 (Act of May 17, 1921, P.L. 682, No. 284), Section 410 (uniform policy provisions): https://www.palegis.us/statutes/unconsolidated/law-information/view-statute?iFrame=true&txtType=HTM&SessYr=1921&SessInd=0&ActNum=0284
  3. Same act, Section 411 (prohibited provisions): same URL as source 2
  4. Same act, Section 410D (right to examine life policies): same URL as source 2
  5. Same act, Section 410E (right to examine annuities): same URL as source 2
  6. Same act, Section 404-A (delivery of policies): same URL as source 2
  7. Same act, Section 412 (insurable interest): same URL as source 2
  8. 20 Pa.C.S. 6111.2 (PA General Assembly): https://www.palegis.us/statutes/consolidated/view-statute?iFrame=true&txtType=HTM&ttl=20&div=0&chapter=61&section=11&subsctn=2
  9. Insurance Company Law of 1921, Section 348: same URL as source 2
  10. Insurance Department Act of 1921 (Act of May 17, 1921, P.L. 789, No. 285), Section 609-A: https://www.palegis.us/statutes/unconsolidated/law-information/view-statute?iFrame=true&txtType=HTM&SessYr=1921&SessInd=0&ActNum=0285
  11. Same act, Section 607-A: same URL as source 10
  12. Same act, Section 608-A: same URL as source 10

More free Pennsylvania exam help

Checkout