Chapter 12 Pennsylvania Laws and Rules Study Set Questions with Correct Answers

What is the purpose of the Pennsylvania Life and Health Insurance Guaranty Association? 1) Assist an applicant choose the best insurer 2) Assist an applicant choose the right amount of coverage 3) Provide each policyowner a buyer's guide and policy summary 4) Provide policyowner protection if an insurer becomes insolvent Provide policyowner protection if an insurer becomes insolvent Viatical settlement brokers send packets of information to potential viatees. These information packets normally include existing policy terms and which of the following? 1) Viator's medical prognosis 2) Proceeds of the settlement to be placed in a trust account 3) Executed absolute assignment 4) Brochure describing the process of viatical settlements Viator's medical prognosis In Pennsylvania, what's the requirement for a minor to receive proceeds from a death benefit? 1) Has to be at least 15 years old 2) Must live in the same state as insured 3) The Commissioner must approve 4) A guardian must be appointed A guardian must be appointed An Accelerated Death Benefit in Pennsylvania must be at least what percentage of the total death benefit? 15% 25% 50% 75% 25% Which of the following statements about the contestability of a life insurance policy is true? 1) The policy cannot be contested by the insurer once it is paid for and issued 2) The policy can be contested by the insurer only during the first two years of the contract 3) The policy can never be contested by the insurer 4) The policy can always be contested by the insurer The policy can be contested by the insurer only during the first two years of the contract