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PA Life, Accident, & Health Insurance Exam With 100% Correct Answers 2023
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PA Life, Accident, & Health Insurance Exam With 100% Correct Answers 2023
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PA Life, Accident, & Health Insurance Exam With 100% Correct Answers 2023Insurance - Correct Answer-defined as the transfer of PURE risk to the insurance company in consideration for a premium.
The chance of loss without any chance of gain is called - Correct Answer-pure risk
Speculative risk - Correct Answer-has the possibility for gain or loss and is not insurable.
Risk is defined as the - Correct Answer-chance of loss.
A condition that could result in a loss is known as an - Correct Answer-exposure
A hazard is something that increases - Correct Answer-the chance of loss.
The presence of a physical hazard - Correct Answer-increases the chance of a loss occurring.
A peril is - Correct Answer-defined as a cause of loss, such as fire.
To be insurable, - Correct Answer-losses must be calculable.
The law of large numbers - Correct Answer-allows insurers to predict claims more accurately.
The law of large numbers applies to - Correct Answer-groups of people, not to individuals.
The more people in the group, - Correct Answer-the more accurate the predictions are.
Most insurers buy reinsurance - Correct Answer-to protect themselves in the event of a catastrophic loss.
Insurance laws are not required - Correct Answer-to be uniform from one state to another.
A stock insurer - Correct Answer-may pay dividends to its shareholders (stockholders), but they may not be guaranteed.
A reciprocal insurance company is managed by an - Correct Answer-attorney-in-fact. An unincorporated association of individuals who insure each other is known as - Correct Answer-a reciprocal insurer.
The government offers insurance primarily based upon - Correct Answer-social needs, such as flood insurance and workers compensation, but does not offer insurance for the
purpose of preventing fraud.
A foreign company - Correct Answer-has their home office in another state.
An insurer incorporated outside of the U.S. who sells in the U.S. is - Correct Answer-an alien company.
A producer may be personally liable when - Correct Answer-violating the producer's contract.
Producers represent - Correct Answer-the insurance company, not the insured.
Independent producers - Correct Answer-own their own accounts and are not insurance
company employees.
Producers have - Correct Answer-express, implied and apparent authority.
The authority a producer - Correct Answer-has that is written in his or her contract is known as express authority.
A producer's binding authority (if any) - Correct Answer-is expressed (written down) in the producer's contract with the insurer the producer represents.
The authority not expressly (written) granted, - Correct Answer-but is actual authority the producer has to transact normal business activities, is known as implied authority.
The elements of a legal contract may be remembered - Correct Answer-by the acronym C-O-A-L (consideration, offer, acceptance, legal purpose and legal capacity).
A requirement for a valid contract - Correct Answer-is offer and acceptance, or mutual agreement.
Advertising the availability of insurance is not - Correct Answer-considered to be an offer.
A specific and definite proposal to enter into a contract is known as - Correct Answer-an
offer.
The consideration on a policy need - Correct Answer-not be equal.
A policy may not be voided - Correct Answer-due to unequal consideration.
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