State RegulationsPA specificDifficulty 1/5
In Pennsylvania, what must a life insurer do with any restriction or exclusion it applies to an accelerated benefit rider under 31 Pa. Code 90f.4?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
31 Pa. Code 90f.4 permits exclusions and restrictions on accelerated benefits, but the Pennsylvania framework treats them as part of the bargain the consumer agreed to: they belong in the policy documents, disclosed so the insured can see when the living benefit would and would not pay. A restriction hidden in internal materials and sprung at claim time defeats the disclosure purpose the Pennsylvania Insurance Department enforces through its accelerated benefits rules.
Why the other options are wrong
- A) Withholding restrictions until a denial contradicts the disclosure requirement; the insured must be able to see the limits in the policy.
- C) County recording has no role in insurance policy restrictions; the governing documents are the policy and its filings with the Pennsylvania Insurance Department.
- D) Restrictions apply according to the policy's terms going forward, not retroactively to some grandfathered class of older policies.
Memory hook
Exclusions live in the policy, not in a drawer at the home office.