Pennsylvania's standard life policy provisions are in 40 P.S. 510-511b. Its free-look rules are in 510c (life) and 510d (annuities), replacement is in 31 Pa. Code Chapter 81, and accelerated benefits are in 31 Pa. Code Chapter 90f. The state questions ask for Pennsylvania's numbers, especially its three-tier free look of 10, 20 or 45 days. What each provision means in general is in the national Life Policy Provisions, Options and Riders guide.

Required provisions (40 P.S. 510)

Grace period (510(b))

• 30 days or one month. Group life uses 31 days.

Incontestability (510(c))

• A policy is incontestable after 2 years in force during the insured's lifetime.
• The insurer may except disability and accidental death benefits.
• Once the period ends, the clause bars contests of the policy's validity. The insurer may still apply coverage exclusions and restrictions.

Entire contract (510(d))

• The policy plus the attached application.

Misstatement of age (510(e))

• Benefits are adjusted to what the premium would buy at the correct age.

Dividends (510(f))

• A participating policy must start apportioning dividends annually no later than the end of the third policy year.

Policy loans (510(h), 511(a))

• A loan value must be available after three full years' premiums.
• The insurer may defer a loan (other than one to pay premiums) for up to 6 months.
• A policy can't be forfeited for an unpaid loan while total debt is less than the cash value.

Nonforfeiture and settlement options (510(g), (i), (j))

• The usual options are cash surrender, reduced paid-up and extended term. An "automatic increase of the face amount" is not one of them.
• A fixed-period settlement option pays equal installments for a set number of years.

Reinstatement (510(k))

• Within 3 years, with evidence of insurability and back premiums.
• Interest on back premiums may not exceed 8% a year.

Suicide

• Pennsylvania's standard provisions set no statutory suicide-clause period. The policy's own clause controls.

Prohibited provisions and claim rules (40 P.S. 511-511b)

A Pennsylvania life policy may not:

• Limit lawsuits to less than 2 years after the cause arises.
• Be backdated more than 6 months to get a lower premium (511(c)).
• Be forfeited for an unpaid loan smaller than the cash value.

Medical examiner's certificate (511a)

• If the insurer's medical examiner certified the applicant as a fit risk, the insurer can't later deny a claim on health grounds unless the certificate was obtained by the insured's fraud or misrepresentation.

Death claims (511b)

• If not paid within 30 days of satisfactory proof of death, interest is owed, generally from the date of death.

Free look (40 P.S. 510c)

• When delivery happens (40 P.S. 625-4):
  • A mailed policy is considered delivered on the date of mailing.
  • A policy delivered electronically is delivered on the date of transmission.
• Variable life: the refund is the amount stated in the free-look notice (510c(b)).
• Annuities follow the same 10, 20 and 45-day pattern (510d). See the Pennsylvania Annuities guide.

Replacement (31 Pa. Code Chapter 81)

What counts as a replacement

• Among other things, borrowing more than 25% of an existing policy's loan value to fund a new policy (81.2-81.3).

The producer's duties

• Present the Notice Regarding Replacement no later than when the application is taken. The applicant and producer both sign it (81.4).

The insurers' duties (81.6)

• The replacing insurer notifies each existing insurer within 5 working days.
• An existing insurer trying to conserve the policy sends a disclosure or ledger statement within 20 days of the notice.

Misrepresentation

• Churning (an internal replacement using misrepresentation) and twisting are unfair practices.

Disclosure at the sale (31 Pa. Code Ch. 83; 40 P.S. 625-3 to 625-8)

• Disclosure Statement: due no later than when the application is signed. It shows coverage amounts, premiums, cash values and dividends.
• Surrender Comparison Index: calculated at 5%, due at delivery or earlier on request. Annuities are exempt from Chapter 83.
• Illustrations: use only the insurer-approved illustration system, unaltered. Guaranteed and nonguaranteed values must be clearly separated.
• Altering applications: only the applicant, or someone with the applicant's written consent, may change answers on a life or annuity application (625-6).
• Titles: a producer who sells only life insurance and annuities may not hold out as a financial planner or investment adviser (625-3(a)).

Accelerated death benefits (31 Pa. Code Chapter 90f)

• A terminal or chronic condition can trigger an early payment of part of the death benefit.
• An imminent-death benefit is payable when a physician certifies life expectancy of 6 to 12 months or less, as the policy defines it.
• The benefit may not exclude preexisting conditions.
• Before the application is signed, the applicant receives a disclosure that a payment reduces the death benefit and policy values.

Beneficiaries

• Common disaster: if the insured and beneficiary die with no evidence of who died first, proceeds are paid as if the insured survived the beneficiary (20 Pa.C.S. 8504).
• No surviving beneficiary: proceeds go to the insured's estate.
• Divorce (20 Pa.C.S. 6111.2):
  • A designation of the former spouse becomes ineffective, unless an intent for it to survive the divorce appears or the designation was made after the decree.
  • The same applies if the insured dies while a divorce is pending and grounds have been established.
  • An insurer that pays the former spouse without notice of a court order isn't liable.

Group life (Group Life Insurance Policy Law, 40 P.S. 532.1 et seq.)

• Grace period: 31 days.
• Conversion after employment ends: any form the insurer customarily issues except term, at attained-age rates.
• When the group policy itself terminates: conversion is available only to people insured at least 5 years.

Common exam traps

• Free look: 10, 20 or 45 days. Pennsylvania has no special 30-day senior rule.
• Mailed policies count as delivered on the mailing date.
• Reinstatement: 3 years, with interest of no more than 8%.
• Backdating: no more than 6 months. Suit limitations: at least 2 years.
• Incontestability bars validity contests but not coverage exclusions.
• Death claims unpaid after 30 days earn interest from the date of death.