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100+ Free IFoA SA1 Practice Questions

IFoA SA1 Health and Care Specialist Advanced practice questions are available now; exam metadata is being verified.

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When an insurer launches a new health product, why is a sensitivity (or scenario) analysis on the profit test essential before sign-off?

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2026 Statistics

Key Facts: IFoA SA1 Exam

3h 20m

Exam Duration

IFoA SA1 study guide

Up to 4

Written Questions

IFoA SA Subject format

~300 hrs

Recommended Study

IFoA SA1 page

2/year

Sittings (Apr, Sep/Oct)

IFoA exam schedule

1 of 7

Specialist Applications Subjects

IFoA curriculum

Builds on SP1

Prerequisite Knowledge

IFoA SA1 syllabus

SA1 is one of the IFoA's seven Specialist Applications subjects and is assessed by a single 3-hour-20-minute online written paper of up to four long-answer, case-based questions answered in Microsoft Word, testing higher-order application rather than factual recall. It builds on Subject SP1 and equips candidates to advise as a senior manager of a health and care insurer across PMI, income protection, critical illness and long-term care. There are two sittings each year (April and September/October), the recommended study time is around 300 hours, and the pass mark is set each sitting by the Board of Examiners rather than published as a fixed percentage. This free bank provides 100 MCQ knowledge-prep questions across the syllabus.

Sample IFoA SA1 Practice Questions

Try these sample questions to test your IFoA SA1 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Private medical insurance (PMI) in the UK typically operates on which underlying pricing and renewal basis?
A.Annually renewable contracts with premiums reviewable at each renewal
B.Whole-of-life guaranteed premiums fixed at outset
C.Single-premium contracts with no renewal
D.Unit-linked investment contracts with mortality charges
Explanation: UK PMI is overwhelmingly written as an annually renewable health insurance product. Premiums are reviewable at each renewal to reflect medical inflation, claims experience, and age, rather than being guaranteed for life.
2Which benefit-design feature most directly reduces the risk of anti-selection and moral hazard in a private medical insurance policy?
A.Guaranteed insurability with no health questions
B.Excesses, co-payments and benefit limits
C.Unlimited outpatient cover with no caps
D.Premium discounts for new joiners only
Explanation: Excesses, co-payments and benefit limits make policyholders share in the cost of claims, discouraging unnecessary treatment (moral hazard) and limiting the insurer's exposure to high-cost selective risks. They are core PMI cost-control levers.
3Income protection (IP) insurance benefit is most commonly defined relative to which measure?
A.The full pre-disability gross salary with no cap
B.A flat lump sum payable on any sickness absence
C.A proportion of pre-disability earnings, allowing for other income, subject to a maximum
D.The insurer's reserve per policy
Explanation: IP benefits are deliberately set as a proportion of pre-disability earnings (and offset against other income such as state benefits) and capped, so that the insured is better off working than claiming. This preserves the incentive to return to work.
4In an income protection contract, the deferred period is best described as:
A.The period after a claim ends before cover can resume
B.The maximum duration over which benefit is paid
C.The number of years premiums must be paid before any claim
D.The waiting period from the onset of incapacity before benefit becomes payable
Explanation: The deferred period is the time the claimant must remain incapacitated before benefit starts. Longer deferred periods reduce premiums by excluding short claims and aligning with employer sick pay or savings.
5Critical illness (CI) insurance most commonly pays benefit in what form and on what trigger?
A.A tax-free lump sum on diagnosis of a defined condition or qualifying surgery, with survival period
B.A regular income on diagnosis of any illness
C.Reimbursement of actual medical bills incurred
D.An annuity payable only on death
Explanation: CI typically pays a lump sum on diagnosis of one of a defined list of conditions (e.g. specified cancers, heart attack, stroke) or qualifying procedures, usually subject to a short survival period. It is benefit-defined, not indemnity.
6A survival period in a critical illness policy primarily protects the insurer against which risk?
A.The risk that medical inflation exceeds pricing assumptions
B.Paying a living-benefit lump sum where the insured dies almost immediately after diagnosis
C.Lapse and re-entry by healthy policyholders
D.Expense overruns on claims administration
Explanation: The survival period (commonly 14 to 28 days) ensures CI functions as a living benefit. It avoids paying a CI claim where the insured dies almost immediately, which would effectively convert it into a death benefit and could overlap with life cover.
7Long-term care insurance (LTCI) provides benefits primarily linked to which trigger?
A.Hospital inpatient admission for acute illness
B.Unemployment lasting more than six months
C.Inability to perform a defined number of activities of daily living (ADLs) or cognitive impairment
D.Reaching state pension age
Explanation: LTCI benefits are typically triggered by failure of a specified number of activities of daily living (such as washing, dressing, feeding, mobility) or by cognitive impairment, reflecting the need for ongoing care rather than acute medical treatment.
8When pricing a new PMI product, why is medical (claims) inflation a particularly important assumption?
A.It only affects reserves, not premiums
B.It reduces the cost of claims over time
C.It is fixed by regulation each year
D.Medical cost inflation typically exceeds general price inflation, driving rapid premium escalation if unallowed for
Explanation: Medical cost inflation (driven by new treatments, technology and provider fees) usually runs ahead of general CPI/RPI. Failing to allow for it leads to systematic under-pricing and forces large renewal increases, harming retention.
9An actuary pricing income protection must set the claim inception rate and which complementary assumption that drives the bulk of the liability?
A.Claim recovery (termination) rates
B.Surrender value scale
C.Annuity guarantee rates
D.Unit fund growth rate
Explanation: IP cost depends on both how often claims start (inception) and how long they last. Claim termination/recovery rates, which depend on cause, age, deferred period and duration in claim, drive the present value of benefit payments.
10Why might a health insurer offer guaranteed rather than reviewable premiums on a critical illness product, despite the extra risk?
A.To reduce its required capital
B.To improve marketability and reduce persistency risk by giving policyholders premium certainty
C.Because regulation prohibits reviewable CI premiums
D.To avoid the need for reinsurance
Explanation: Guaranteed premiums are attractive to consumers and advisers because they remove the risk of future increases, supporting sales and reducing lapses. The trade-off is that the insurer bears trend and morbidity risk, typically increasing the price and capital requirement.

About the IFoA SA1 Practice Questions

Verified exam format metadata for IFoA SA1 Health and Care Specialist Advanced is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.