PLAHI - Pennsylvania Life Accident and Health Insurance Exam

Question 21: A producer in Reading delivers a policy that was applied for without any premium payment, and the insurer requires confirmation that the applicant's health has not changed since the application date. Which of the following documents does the producer collect?

A conditional receipt

An impairment rider

A replacement notice

A statement of good health

Question 22: An applicant pays no premium with the application and is rated substandard, so the insurer issues the policy with an additional premium the applicant accepts and pays when the producer arrives. Which of the following establishes the effective date of coverage?

The date the application was signed

The date the medical examination was completed

The date of policy delivery and payment

The date the underwriter approved the file

Question 23: A Pennsylvania health policy distinguishes between an unintentional bodily injury caused by an unforeseen event and a need for medical care arising from some cause other than an accident. Which of the following correctly names those two perils in order?

Hazard and exposure

Loss and indemnity

Morbidity and mortality

Accident and sickness

Question 24: A Pennsylvania consumer buys limited coverage that pays a stated dollar amount for each day she spends confined in a hospital, without regard to the actual charges billed. Which of the following describes the policy she has purchased?

A hospital indemnity policy

A major medical policy

A long-term care policy

A disability income policy

Question 25: A Pennsylvania individual health policy lists several situations in which no benefits at all will be payable to the insured. Which of the following appears among the exclusions the Commonwealth's minimum standards contemplate for individual accident and sickness coverage?

Care for a newborn child

Losses covered by workers' compensation

Emergency treatment out of network

Treatment for a serious mental illness

Question 26: A producer in Altoona is considering replacing a client's individual health policy with a new contract issued by a different insurer. Which of the following considerations most directly threatens the client if that replacement goes forward without careful review?

The loss of accumulated cash value

The immediate loss of dependent coverage

A new preexisting condition waiting period

The forfeiture of paid-up additions

Question 27: A Pennsylvania producer designs her own mailer promoting a life product and never names the insurer that will actually issue the coverage being advertised. Which of the following describes the problem with that advertisement under the Commonwealth's advertising rules?

The actual insurer must be identified

Producers may not create their own material

Advertising must be filed with the Commissioner

Advertising may not mention specific products

Question 28: A producer in Chester takes an application for a life policy that will replace the applicant's existing life coverage with another insurer. Which of the following describes what Pennsylvania requires the producer to do at the time the application is taken?

Notify the existing insurer within five days

Wait for the new insurer's written approval

Present a signed replacement notice

Obtain the existing insurer's written consent

Question 29: A Pennsylvania annuity contract names one person who controls the contract and may surrender it, a second person whose life determines the income payments, and a third who receives value at death. Which of the following names those three parties?

Owner, annuitant, and beneficiary

Annuitant, owner, and beneficiary

Insured, policyowner, and assignee

Applicant, subscriber, and payee

Question 30: A Pennsylvania client makes deposits into a deferred annuity for many years, and later the insurer begins converting the accumulated value into a stream of income payments to her. Which of the following names those two stages of the contract?

Elimination period and benefit period

Accumulation period and annuitization period

Probationary period and grace period

Free look period and surrender period

Question 31: Three Pennsylvania buyers purchase annuities. One contract replaces nothing, one replaces a contract issued by the same insurer, and one replaces a contract issued by a different insurer. Which of the following states the free look period for each of them?

Ten, forty-five, and twenty days

Twenty, ten, and forty-five days

Ten days for all three buyers

Thirty, thirty, and thirty days

Question 32: A retiree in Lancaster hands an insurer a single sum from the sale of her business and asks that income payments begin within the first year, with no accumulation stage at all. Which of the following contracts has she bought?

A flexible premium deferred annuity

A single premium immediate annuity

A single premium deferred annuity

An equity indexed deferred annuity

Question 33: A Pennsylvania saver wants to contribute varying amounts to a deferred annuity whenever her income allows, and she wants the money to grow tax deferred for years before any income begins. Which of the following describes the contract that fits her intention?

A single premium immediate annuity

A structured settlement annuity

An annuity certain payout

A flexible premium deferred annuity

Question 34: An annuitant in Erie selects the payout option that produces the largest monthly income and accepts that payments cease entirely at her death, even if she dies after receiving only a few checks. Which of the following options has she chosen?

Pure life, sometimes called straight life

Joint and survivor annuity

Life with ten year period certain

Refund life annuity

Question 35: A Pennsylvania annuitant wants lifetime income but also wants a guarantee that payments will continue to her son for at least fifteen years if she dies early in the payout stage. Which of the following options should she select?

Pure life annuity

Annuity certain for fifteen years

Life with period certain

Interest only settlement

Question 36: An annuitant dies after receiving payments totaling less than the amount she originally applied to her Pennsylvania annuity contract, and the insurer then pays the remaining difference to her named beneficiary. Which of the following payout options produced that outcome?

Pure life annuity

Refund life annuity

Joint life annuity

Fixed period annuity

Question 37: A married couple in Bucks County buys an annuity that pays while both are living and continues at two thirds of the original amount to whichever spouse survives. Which of the following describes the payout option they selected?

Joint life annuity

Life with period certain

Annuity certain

Joint and survivor annuity

Question 38: A conservative Pennsylvania buyer wants an annuity whose value the insurer fully guarantees, funded through the company's general account, with a minimum rate of interest stated in the contract itself. Which of the following products should the producer present to her?

A variable annuity

A variable universal life policy

A fixed annuity

A separate account annuity

Question 39: A Pennsylvania producer who currently holds only a life line of authority wants to begin selling variable annuity contracts to her clients in Harrisburg. Which of the following describes the regulatory framework that applies to those particular sales?

Both state insurance and federal securities regulation

Federal securities regulation only

County licensing plus state approval

Pennsylvania regulation only

Question 40: A client asks about a contract whose credited interest moves with a stock market index but whose value the insurer still guarantees, and she wants to know whether a securities registration is needed to sell it. Which of the following is correct?

A variable product requiring securities registration

A variable product exempt from registration

A life insurance policy, not an annuity

A fixed product needing no securities registration

PLAHI Pennsylvania Life Accident and Health Insurance Exam - Set 3 - Part 2