State RegulationsPA specificDifficulty 1/5
Under Pennsylvania's accelerated benefits regulation, what does an accelerated (living) benefit rider allow an insured to do?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Pennsylvania's accelerated benefits rule, 31 Pa. Code 90f.3, governs the conditions under which a life insurer may pay a living benefit before death. When a qualifying condition is met, the insurer advances part of the death benefit to the insured while the insured is still alive, and the amount advanced is deducted from what remains payable at death. The rider therefore converts part of a death benefit into a living benefit rather than creating separate new coverage.
Why the other options are wrong
- B) The rider does not sell additional coverage or involve underwriting; it accelerates benefits that already exist under the policy.
- C) Conversion to an annuity is a separate product transaction, not the function of an accelerated benefit rider under 31 Pa. Code 90f.3.
- D) Suspending premiums during illness is a waiver-of-premium feature; the accelerated rider pays money, it does not pause premium obligations.
Memory hook
Accelerated = death benefit paid early: part now, less later.