State RegulationsPA specificDifficulty 1/5
Under 31 Pa. Code Ch. 83, what must an insurer deliver to an applicant for an individual life insurance policy so the applicant can understand and compare the policy's costs and features?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
31 Pa. Code Ch. 83 establishes the life insurance disclosure framework: before or with the delivery of an individual life policy, the insurer must provide a disclosure statement consisting of a buyer's guide and a policy summary. These documents explain how the policy works, its costs, and its features in language a consumer can understand. The requirement exists so that buyers can comparison-shop life products rather than accept whatever a sales presentation presents.
Why the other options are wrong
- B) The annual financial statement is a regulatory filing for solvency oversight; it is not the consumer-facing disclosure Ch. 83 requires.
- C) Commission schedules are internal compensation records and shed no light on the policy's costs or features for the applicant.
- D) Prior-insurance certificates are not part of the Ch. 83 disclosure package and do not describe the policy being purchased.
Memory hook
Buyer's guide plus policy summary — the Chapter 83 welcome kit.