PA-Life-Accident-and-Health Exam Dumps - Pennsylvania Life, Accident and Health Exam

Thechange of occupation provisionis a standard general policy provision in Pennsylvania Accident and Health Insurance policies. This provision allows the insurer to adjust benefits or premium rates if the insured changes to a more hazardous occupation after the policy has been issued.

Pennsylvania insurance education materials explain that if the insured moves into a higher-risk occupation, the insurer may reduce benefits to the amount the original premium would have purchased for that occupation. Conversely, if the insured moves to a less hazardous occupation, benefits may increase or premiums may decrease. The other answer choices are not recognized provisions related to occupational risk. Therefore, thechange of occupation provisionis the correct and verified answer under Pennsylvania Life, Accident, and Health Insurance standards.

The suicide clause in a life insurance policy protects the insurer against adverse selection by stating that if the insured commits suicide within a specified period (usually two years) after the policy is issued, the insurer will not pay the death benefit but will return the premiums paid. This provision helps prevent individuals from obtaining life insurance with the intention of committing suicide shortly after, thus mitigating the risk for the insurer.

Under Pennsylvania Life Insurance beneficiary designations,per capitadistribution means that proceeds are dividedequally among the surviving named beneficiariesat the time of the insured’s death. If a beneficiary predeceases the insured, that beneficiary’s share isnot passed down to heirs or descendants. Instead, the deceased beneficiary’s share is reallocated among the remaining living beneficiaries.

In this scenario, the insured named four children as beneficiaries in equal shares of a $60,000 policy. One child died before the insured, leaving three surviving children at the time of death. Because the designation is per capita, only theliving beneficiariesare entitled to the proceeds. The deceased child’s children (the insured’s grandchildren) receiveno portionof the benefit under per capita distribution.

The total policy proceeds of $60,000 are divided equally among the three surviving children. Each receives $20,000. If the insured had selectedper stirpes, the deceased child’s share would have passed to their children. However, Pennsylvania insurance study materials clearly distinguish per capita as distribution byheadcount of living beneficiaries, not by family line.

Therefore, option D is correct.

According to Pennsylvania Life Insurance and retirement planning study materials, a rollover from aTraditional IRA to another IRA must be completed within 60 daysto avoid tax consequences. If the funds are not deposited into the new IRA within this timeframe, the distribution is considered taxable income and may also be subject to an early withdrawal penalty if the account holder is under age 59½.

The 60-day rollover rule applies when the account owner takes possession of the funds before redepositing them. Pennsylvania insurance licensing materials emphasize this rule as a critical compliance requirement for agents advising clients on retirement planning and tax avoidance strategies. Failure to meet the deadline converts the rollover into a permanent distribution.

Other timeframes listed are incorrect. Ninety days and forty-five days are not recognized rollover periods under Pennsylvania or federal retirement standards, and zero days would only apply to a trustee-to-trustee transfer, which is not classified as a rollover.

Therefore, the correct and verified answer under Pennsylvania Life, Accident, and Health Insurance guidelines is60 days.

Estate conservation refers to the use of life insurance topreserve an estate’s valueby providing liquidity at death. In Pennsylvania insurance education, this concept is emphasized as a key personal and business use of life insurance. When an insured purchases life insurance to avoid the forced sale of assets—such as real estate, a business, or investments—the goal is to ensure that estate taxes, debts, and expenses can be paid without liquidating valuable property.

Life insurance proceeds provide immediate cash to heirs or the estate, allowing assets to be retained rather than sold under unfavorable conditions. This strategy is commonly used in estate planning to protect family wealth and business continuity.

The other options are incorrect. Buy-sell funding relates to business ownership transfers. Capital retention is not the correct planning term. Capital liquidation refers to selling assets, which is the opposite of the stated goal. Therefore, the correct and verified answer under Pennsylvania Life Insurance principles isB. Estate conservation.