PA Life, Accident, & Health Insurance
Exam with Guaranteed Pass Solutions
2026 Updated.
Insurance - 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 - Answer pure risk
Speculative risk - Answer has the possibility for gain or loss and is not insurable.
Risk is defined as the - Answer chance of loss.
A condition that could result in a loss is known as an - Answer exposure
A hazard is something that increases - Answer the chance of loss.
The presence of a physical hazard - Answer increases the chance of a loss occurring.
A peril is - Answer defined as a cause of loss, such as fire.
To be insurable, - Answer losses must be calculable.
The law of large numbers - Answer allows insurers to predict claims more accurately.
The law of large numbers applies to - Answer groups of people, not to individuals.
The more people in the group, - Answer the more accurate the predictions are.
Most insurers buy reinsurance - Answer to protect themselves in the event of a catastrophic
loss.
, A stock insurer - Answer may pay dividends to its shareholders (stockholders), but they may
not be guaranteed.
A reciprocal insurance company is managed by an - Answer attorney-in-fact.
An unincorporated association of individuals who insure each other is known as - Answer a
reciprocal insurer.
The government offers insurance primarily based upon - Answer social needs, such as flood
insurance and workers compensation, but does not offer insurance for the purpose of
preventing fraud.
A foreign company - Answer has their home office in another state.
An insurer incorporated outside of the U.S. who sells in the U.S. is - Answer an alien
company.
A producer may be personally liable when - Answer violating the producer's contract.
Producers represent - Answer the insurance company, not the insured.
Independent producers - Answer own their own accounts and are not insurance company
employees.
Producers have - Answer express, implied and apparent authority.
The authority a producer - Answer has that is written in his or her contract is known as
express authority.
A producer's binding authority (if any) - Answer is expressed (written down) in the
producer's contract with the insurer the producer represents.
The authority not expressly (written) granted, - Answer but is actual authority the producer
has to transact normal business activities, is known as implied authority.
Exam with Guaranteed Pass Solutions
2026 Updated.
Insurance - 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 - Answer pure risk
Speculative risk - Answer has the possibility for gain or loss and is not insurable.
Risk is defined as the - Answer chance of loss.
A condition that could result in a loss is known as an - Answer exposure
A hazard is something that increases - Answer the chance of loss.
The presence of a physical hazard - Answer increases the chance of a loss occurring.
A peril is - Answer defined as a cause of loss, such as fire.
To be insurable, - Answer losses must be calculable.
The law of large numbers - Answer allows insurers to predict claims more accurately.
The law of large numbers applies to - Answer groups of people, not to individuals.
The more people in the group, - Answer the more accurate the predictions are.
Most insurers buy reinsurance - Answer to protect themselves in the event of a catastrophic
loss.
, A stock insurer - Answer may pay dividends to its shareholders (stockholders), but they may
not be guaranteed.
A reciprocal insurance company is managed by an - Answer attorney-in-fact.
An unincorporated association of individuals who insure each other is known as - Answer a
reciprocal insurer.
The government offers insurance primarily based upon - Answer social needs, such as flood
insurance and workers compensation, but does not offer insurance for the purpose of
preventing fraud.
A foreign company - Answer has their home office in another state.
An insurer incorporated outside of the U.S. who sells in the U.S. is - Answer an alien
company.
A producer may be personally liable when - Answer violating the producer's contract.
Producers represent - Answer the insurance company, not the insured.
Independent producers - Answer own their own accounts and are not insurance company
employees.
Producers have - Answer express, implied and apparent authority.
The authority a producer - Answer has that is written in his or her contract is known as
express authority.
A producer's binding authority (if any) - Answer is expressed (written down) in the
producer's contract with the insurer the producer represents.
The authority not expressly (written) granted, - Answer but is actual authority the producer
has to transact normal business activities, is known as implied authority.
