PLAHI - Pennsylvania Life Accident and Health Insurance Exam

Question 1: A Pittsburgh couple buys a policy that pays a fixed death benefit for a twenty-year period, charges the same premium throughout that period, and never builds any cash value. Which of the following types of coverage have they purchased?

Whole life insurance

Universal life insurance

Decreasing term insurance

Level term insurance

Question 2: A homeowner in Lancaster wants life coverage whose face amount declines each year as her mortgage balance is paid down, while the premium she pays stays exactly the same every year. Which of the following products best fits that description?

Increasing term insurance

Decreasing term insurance

Limited payment whole life

A single premium annuity

Question 3: A term policyholder in Reading reaches the end of his current term and continues the same coverage for another term without answering any health questions, though his premium rises noticeably. Which of the following policy features allowed him to do that?

The nonforfeiture provision

The convertibility feature

The renewability feature

The reinstatement provision

Question 4: A young producer in Altoona shows a client how to exchange his existing term coverage for a permanent contract at any point during the term, without a medical examination. Which of the following features makes that exchange possible?

Convertibility

The guaranteed insurability rider

The payor benefit

Automatic premium loan

Question 5: A Bethlehem buyer wants lifetime protection with a premium that never changes, a death benefit that stays level, and a guaranteed cash value she can borrow against. Which of the following policies delivers all three of those features?

Annually renewable term

Traditional whole life

Return of premium term

A deferred annuity

Question 6: A Harrisburg dentist wants permanent coverage that stays in force for life but requires premium payments only until she reaches age sixty-five, after which nothing more is owed. Which of the following describes the policy she should buy?

Continuous premium whole life

Modified premium whole life

Limited payment whole life

Decreasing term insurance

Question 7: A retiree in Erie pays one lump sum for a permanent policy and is told no further premium will ever be due, and that the contract carries cash value immediately. Which of the following policies has she purchased?

Annually renewable term insurance

Graded premium whole life

An equity indexed annuity

Single premium whole life

Question 8: An insurer offers a whole life contract on which the company itself may adjust the premium it actually charges from year to year, though the policy also names a ceiling the insurer can never exceed. Which of the following describes that design?

Indeterminate premium whole life

Variable universal life

Level term insurance

Adjustable life insurance

Question 9: A policyowner in Scranton reviews her universal life contract and chooses the death benefit option under which her beneficiary will receive the specified amount of insurance plus the accumulated cash account. Which of the following names the option she selected?

Option A, the level death benefit

The extended term option

Option B, the increasing death benefit

The reduced paid-up option

Question 10: A universal life policyowner in Chester reviews her annual statement and asks her producer what the insurer takes out of the policy's cash account each month before any interest is credited. Which of the following describes those monthly deductions?

Dividends and paid-up additions

The cost of insurance and expense charges

Surrender charges and premium taxes only

Nonforfeiture values and policy loans

Question 11: Two clients want flexibility. One wants the insurer to recalculate a fixed premium whenever she changes her death benefit; the other wants to pay whatever amount she likes each month. Which of the following BEST matches these requests?

Adjustable life and universal life

Both should buy variable life insurance

Universal life and adjustable life

Both should buy limited payment life

Question 12: A producer in York wants to begin selling variable life insurance to Pennsylvania clients, and she already holds a resident life line of authority in good standing. Which of the following additional qualifications must she satisfy before making any of those sales?

A property and casualty license

An adjuster certification from the Department

Federal securities registration

A surplus lines producer license

Question 13: One contract invests its cash value in a separate account but still promises a minimum death benefit no matter how those investments perform. A second contract offers no such floor at all. Which of the following identifies these two contracts in order?

Universal life and whole life

Variable universal life and variable life

Whole life and adjustable life

Variable life and variable universal life

Question 14: A married couple in Bucks County buys one policy that pays nothing when the first spouse dies and pays the full face amount only after both have died, which helps their heirs cover estate costs. Which of the following have they purchased?

A joint life first-to-die policy

A family term rider

Survivorship life insurance

A juvenile policy

Question 15: A grandparent in Wilkes-Barre buys a small policy on a grandchild, and the contract's face amount automatically multiplies when the child reaches a stated age, with no new underwriting required at that time. Which of the following describes that policy?

A jumping juvenile policy

A survivorship life policy

A modified endowment contract

An annually renewable term policy

Question 16: An employee in Allentown loses group life coverage when her job ends, and she wants an individual policy without proving she is insurable. Which of the following states the Pennsylvania window for applying and paying the first premium?

Ten days after termination

Sixty days after termination

Thirty-one days after termination

Six months after termination

Question 17: A Pennsylvania employer terminates its group life policy entirely rather than replacing it. An employee who was insured under that policy for seven years now wants to convert. Which of the following states the maximum amount Pennsylvania allows him to convert?

The full amount of group coverage lost

Two thousand dollars

Ten thousand dollars

Fifty percent of the group amount

Question 18: A Pennsylvania employee leaves his job and dies eleven days later, having never applied to convert his group life coverage to an individual policy. His family assumes nothing is payable. Which of the following describes the insurer's obligation?

Nothing is payable without an application

Only the premium paid is refunded

The convertible amount is payable

Half the group amount is payable

Question 19: A Pennsylvania insured is never told about his group life conversion privilege until well after the ordinary application period has already ended. Which of the following describes the extension Pennsylvania grants and the outer limit it places on that extension?

Fifteen extra days, never beyond sixty days

Thirty extra days with no outer limit

Ten extra days, never beyond thirty days

No extension is available

Question 20: A Pennsylvania policyowner misses a premium payment and eventually lets the policy lapse altogether. Which of the following pairs the grace period Pennsylvania sets for life insurance with the outer limit for applying to reinstate that lapsed contract?

Thirty-one days grace; five years to reinstate

Sixty days grace; two years to reinstate

One month grace; three years to reinstate

Ten days grace; one year to reinstate

PLAHI Pennsylvania Life Accident and Health Insurance Exam - Set 2 - Part 1

Question 1: A Pittsburgh couple buys a policy that pays a fixed death benefit for a twenty-year period, charges the same premium throughout that period, and never builds any cash value. Which of the following types of coverage have they purchased?

Question 2: A homeowner in Lancaster wants life coverage whose face amount declines each year as her mortgage balance is paid down, while the premium she pays stays exactly the same every year. Which of the following products best fits that description?

Question 3: A term policyholder in Reading reaches the end of his current term and continues the same coverage for another term without answering any health questions, though his premium rises noticeably. Which of the following policy features allowed him to do that?

Question 4: A young producer in Altoona shows a client how to exchange his existing term coverage for a permanent contract at any point during the term, without a medical examination. Which of the following features makes that exchange possible?

Question 5: A Bethlehem buyer wants lifetime protection with a premium that never changes, a death benefit that stays level, and a guaranteed cash value she can borrow against. Which of the following policies delivers all three of those features?

Question 6: A Harrisburg dentist wants permanent coverage that stays in force for life but requires premium payments only until she reaches age sixty-five, after which nothing more is owed. Which of the following describes the policy she should buy?

Question 7: A retiree in Erie pays one lump sum for a permanent policy and is told no further premium will ever be due, and that the contract carries cash value immediately. Which of the following policies has she purchased?

Question 8: An insurer offers a whole life contract on which the company itself may adjust the premium it actually charges from year to year, though the policy also names a ceiling the insurer can never exceed. Which of the following describes that design?

Question 9: A policyowner in Scranton reviews her universal life contract and chooses the death benefit option under which her beneficiary will receive the specified amount of insurance plus the accumulated cash account. Which of the following names the option she selected?

Question 10: A universal life policyowner in Chester reviews her annual statement and asks her producer what the insurer takes out of the policy's cash account each month before any interest is credited. Which of the following describes those monthly deductions?

Question 11: Two clients want flexibility. One wants the insurer to recalculate a fixed premium whenever she changes her death benefit; the other wants to pay whatever amount she likes each month. Which of the following BEST matches these requests?

Question 12: A producer in York wants to begin selling variable life insurance to Pennsylvania clients, and she already holds a resident life line of authority in good standing. Which of the following additional qualifications must she satisfy before making any of those sales?

Question 13: One contract invests its cash value in a separate account but still promises a minimum death benefit no matter how those investments perform. A second contract offers no such floor at all. Which of the following identifies these two contracts in order?

Question 14: A married couple in Bucks County buys one policy that pays nothing when the first spouse dies and pays the full face amount only after both have died, which helps their heirs cover estate costs. Which of the following have they purchased?

Question 15: A grandparent in Wilkes-Barre buys a small policy on a grandchild, and the contract's face amount automatically multiplies when the child reaches a stated age, with no new underwriting required at that time. Which of the following describes that policy?

Question 16: An employee in Allentown loses group life coverage when her job ends, and she wants an individual policy without proving she is insurable. Which of the following states the Pennsylvania window for applying and paying the first premium?

Question 17: A Pennsylvania employer terminates its group life policy entirely rather than replacing it. An employee who was insured under that policy for seven years now wants to convert. Which of the following states the maximum amount Pennsylvania allows him to convert?

Question 18: A Pennsylvania employee leaves his job and dies eleven days later, having never applied to convert his group life coverage to an individual policy. His family assumes nothing is payable. Which of the following describes the insurer's obligation?

Question 19: A Pennsylvania insured is never told about his group life conversion privilege until well after the ordinary application period has already ended. Which of the following describes the extension Pennsylvania grants and the outer limit it places on that extension?

Question 20: A Pennsylvania policyowner misses a premium payment and eventually lets the policy lapse altogether. Which of the following pairs the grace period Pennsylvania sets for life insurance with the outer limit for applying to reinstate that lapsed contract?

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