PLAHI - Pennsylvania Life Accident and Health Insurance Exam

Question 21: A Pennsylvania insurer discovers, thirty months after the policy was issued, that the insured understated his history of heart disease on the application. The misstatement was not fraudulent. Which of the following describes the insurer's ability to contest?

It may contest at any time

It may no longer contest

It may contest for five years

It may contest only after death

Question 22: After an insured dies, a Pennsylvania insurer learns that his age on the application was understated by four years, meaning the premium charged was too low. Which of the following describes how the death benefit is handled under Pennsylvania law?

The claim is denied entirely

The full face amount is paid

The beneficiary must repay the shortfall

Benefits adjust to what the premium purchased

Question 23: A Pennsylvania beneficiary questions whether a statement the producer made verbally during the sales conversation is binding on the insurer, since it never appeared in writing. Which of the following provisions determines what documents actually make up the contract?

The insuring clause

The consideration clause

The entire contract provision

The reinstatement provision

Question 24: A producer delivers a newly issued Pennsylvania whole life policy to a buyer in Lancaster, and the contract replaces no existing coverage. The cancellation notice appears prominently on the first page. Which of the following states the minimum return period Pennsylvania requires?

Three days from delivery

Twenty days from delivery

Forty-five days from delivery

Ten days from delivery

Question 25: One Pennsylvania buyer replaces a policy issued by the same insurer that is writing the new contract. A second buyer replaces a policy written by a different company. Which of the following states the free look period for each buyer?

Forty-five days and twenty days

Twenty days and forty-five days

Ten days for both buyers

Thirty days and ten days

Question 26: A Pennsylvania insurer and a policyowner disagree about when the free look period began. The insurer shows it sent the policy in the normal course of business. Which of the following describes how the delivery date is established?

The date the application was signed

The date the first premium cleared

The date the insurer approved the risk

The mailing, personal delivery, or transmission date

Question 27: An applicant in Pittsburgh asks her producer to date the new policy back so the premium reflects a younger age. Which of the following states how far back Pennsylvania permits a life policy to take effect before the original application?

Three months

Six months

Twelve months

Backdating is prohibited entirely

Question 28: A Pennsylvania policyowner has an outstanding policy loan that is still smaller than the contract's cash value, and the insurer threatens to forfeit the policy because the loan has not been repaid. Which of the following describes that threat?

Permitted if the policy so states

Permitted after a thirty-day notice

Permitted only on participating policies

Prohibited by Pennsylvania law

Question 29: A Pennsylvania whole life policyowner wants to borrow against her contract and also asks when a cash surrender value must be available to her. Which of the following states the premium payment threshold the standard provisions apply to both rights?

After three years of premiums

After one year of premiums

After five years of premiums

Immediately upon policy issue

Question 30: A policyowner in Bethlehem wants to change the beneficiary, borrow against cash value, choose how proceeds will be paid, and eventually assign the contract. Which of the following identifies who holds the authority to do all of these things?

The primary beneficiary

The insured, if different from the owner

The producer of record

The policyowner

Question 31: A policyowner in Erie pledges her life insurance policy to a bank as security for a business loan, intending to keep every other ownership right she currently holds. Which of the following describes the type of assignment she has made?

An absolute assignment

A collateral assignment

An irrevocable beneficiary designation

A spendthrift arrangement

Question 32: A Pennsylvania policyowner wants the death proceeds paid to her three children as a group rather than by name, with a trust receiving the money if none of them survive her. Which of the following describes the designations she is using?

Only individual designations

A facility of payment clause

Per stirpes distribution only

A class designation with contingent trust

Question 33: An insured names his spouse to receive the death benefit, his brother to receive it if the spouse has died, and a charity to receive it if neither survives. Which of the following correctly labels these three designations in order?

Primary, contingent, and tertiary

Contingent, primary, and tertiary

Class, individual, and trust

Revocable, irrevocable, and absolute

Question 34: A Pennsylvania policyowner names a beneficiary whom she cannot remove or replace without that person's written agreement, and she also needs the same consent before borrowing against the policy's cash value. Which of the following describes that designation?

A revocable designation

A class designation

A contingent designation

An irrevocable designation

Question 35: An insured names his three children to share the proceeds equally. One child predeceases him, leaving two children of her own, and that branch collects the deceased child's share. Which of the following describes the distribution method being used?

Per capita distribution

Per stirpes distribution

A common disaster clause

A facility of payment clause

Question 36: An insured and her primary beneficiary are injured in the same accident near Harrisburg, and the beneficiary dies twelve days after the insured. The policy contains a common disaster clause. Which of the following describes how proceeds are paid?

To the primary beneficiary's estate

Split evenly between both estates

To the insured's estate automatically

To the contingent beneficiary

Question 37: A policyowner worries that a beneficiary will pledge the expected death benefit to a lender before it is paid. She wants the proceeds released over time and protected from the beneficiary's creditors. Which of the following provisions accomplishes that?

The spendthrift clause

The incontestable clause

The entire contract provision

The automatic premium loan

Question 38: A Pennsylvania insured names his wife as beneficiary, later divorces her, and never changes the designation or signs any document preserving it. No court order addresses the policy. Which of the following describes the effect of the divorce on that designation?

The designation remains fully effective

The proceeds go automatically to his estate

The designation becomes ineffective

The former spouse receives half the proceeds

Question 39: A beneficiary in Scranton wants the insurer to hold the death benefit and pay her only the earnings it generates, leaving the principal intact so it can be collected at a later date. Which of the following settlement options meets that request?

The fixed amount option

The fixed period option

The life income option

The interest only option

Question 40: One beneficiary asks the insurer to pay the entire proceeds out over exactly fifteen years. A second beneficiary asks instead for a set monthly sum that continues until the money runs out. Which of the following identifies the options they chose?

Fixed period and fixed amount

Fixed amount and fixed period

Interest only and life income

Life income and joint and survivor

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