L&HPennsylvaniamedium
On a Pennsylvania whole life policy with cash value, which of the following is NOT a standard nonforfeiture option available to the owner upon lapse for nonpayment of premium?
Automatic conversion to a variable annuity
BCash surrender
CReduced paid-up insurance of the same face amount as the original policy
DExtended term insurance
Why this is the answer
Under PA's standard nonforfeiture law (40 P.S. § 510.1 et seq.), the three statutory nonforfeiture options are cash surrender value, reduced paid-up insurance, and extended term insurance. Automatic conversion to a variable annuity is not a recognized nonforfeiture option.
Studying for the Pennsylvania Life & Health exam?
This question comes from our L&H bank. Take a free practice test — no signup.