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

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: A beneficiary wants the largest possible monthly check for life and accepts that payments stop at her death even if she dies soon. Which of the following options fits, and which produces a smaller payment for the same beneficiary?

Fixed period, larger than life income

Joint and survivor, larger than straight life

Interest only, larger than fixed amount

Straight life, larger than period certain

Question 42: A retired couple in Pittsburgh wants settlement income that continues for as long as either of them is still alive, though the survivor is willing to accept a reduced check. Which of the following settlement options matches that arrangement?

Straight life income

Joint and survivor income

Fixed period income

Life income with refund

Question 43: A Pennsylvania policyowner stops paying premiums and asks the insurer to apply her accumulated cash value toward permanent coverage for a smaller face amount, with nothing further ever due. Which of the following nonforfeiture options has she selected?

Reduced paid-up insurance

Extended term insurance

Cash surrender

Automatic premium loan

Question 44: A lapsed Pennsylvania policy's cash value is applied to buy term coverage for the same face amount as the original contract, and that coverage lasts a computed number of years. Which of the following nonforfeiture options produced that result?

Reduced paid-up insurance

Cash surrender value

Extended term insurance

A one year term dividend option

Question 45: A policyowner in Reading forgets a premium payment, and rather than letting the contract lapse the insurer borrows the amount due against the policy's cash value and charges interest on it. Which of the following provisions produced that result?

The grace period

The reinstatement provision

The waiver of premium rider

The automatic premium loan provision

Question 46: A participating policyowner in Allentown wants each annual dividend used to purchase additional permanent coverage at her attained age, and she wants no evidence of insurability required for the added amount. Which of the following dividend options should she elect?

Paid-up additions

Accumulate at interest

Reduction of premium

Cash payment

Question 47: An insured in York becomes totally disabled and, after a waiting period passes, the insurer begins paying his premiums for him and also refunds the premiums he paid while he was waiting. Which of the following riders produced that outcome?

The payor benefit rider

The guaranteed insurability rider

The waiver of premium rider

The accidental death rider

Question 48: An accidental death and dismemberment rider on a Pennsylvania life policy names a full benefit payable for accidental death and a smaller amount payable for the loss of a single hand. Which of the following correctly identifies those two amounts?

Face amount and cash value

Principal sum and capital sum

Capital sum and principal sum

Death benefit and dividend

Question 49: A Pennsylvania accelerated death benefit is written to pay on certification of imminent death. Which of the following states the life expectancy range Pennsylvania permits an insurer to set and the minimum meaningful share of the death benefit?

Six to twelve months; twenty-five percent

Twelve to twenty-four months; ten percent

Three to six months; fifty percent

Any period the insurer chooses; no minimum

Question 50: A Pennsylvania life policy states that it will not pay if the insured takes his own life within the first two years, and it limits coverage for deaths in military service. Which of the following describes these contract terms?

Nonforfeiture options

Settlement options

Policy exclusions

Dividend options

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