PA Life, Accident, & Health Insurance

1. What is considered the most common type of specified disease insurance policy?: Cancer 2. Minimum participation standards exist for a group health insurance plans in order to: Prevent Adverse Selection 3. How does underwriting differ between group life and individual life insur- ance?: Medical questions must be answered on individual life insurance 4. when handling premiums for an insured an agent is acting in which capacity?: Fiduciary 5. what is the term used to describe the frequency a...

PA Life, Accident, & Health Insurance Exam Complete Solutions Graded A+ Insurance 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 pure risk Speculative risk has the possibility for gain or loss and is not insurable. Risk is defined as the chance of loss. A condition that could result in a loss is known as an exposure A hazard is something that increases the chance of loss. The presence ...