PA Accident and Health Insurance Exam Prep Questions And Answers
(202472025)
Why are dividends from a mutual insurer not subject to taxation? - ✔✔because
dividends are considered to be a return of premium
what kind of life insurance policy issued by a mutual insurer provides a return of
divisible surplus? - ✔✔participating life insurance policy
A plan in which an employer pays insurance benefits from a fund derived from the
employer's current revenues is called - ✔✔a self funded plan
An insurer's claim settlement practices are regulated by the - ✔✔states insurance
departments
people with higher loss exposure have the tendency to purchase insurance more often
than those of average risk. this is called - ✔✔adverse selection
Insurance represents the process of risk - ✔✔transference
under a contract of adhesion - ✔✔the terms must be accepted OR rejected in full
Legal purpose is a term used in contract law meaning - ✔✔there must be legal
reasons for entering into the contract
in order for a contact to be valid, it must - ✔✔contain an offer and acceptance
in an insurance contract the element that shows each party is giving something of
value is called - ✔✔consideration
, which of the following is present when an applicant stands to lose value if the insured
dies? - ✔✔insurable interest
which contract is insurable interest a component of? - ✔✔legal purpose
in an insurance contract,the applicant's "consideration" is the - ✔✔statements made
in the application and the premium
what makes an insurance policy a unilateral contract - ✔✔only the insurer is legally
bound
_____ is NOT an element of a valid contract - ✔✔countersignature
who is responsible for assembling the policy forms or insureds? - ✔✔insurance
carriers
all of the following are elements of an insurance policy EXCEPT - ✔✔claim forms
a common exclusion with Vision Plan is - ✔✔lasik surgery
The election of COBRA for continuation of health coverage will - ✔✔maintain the
same coverage and increase premium
an employer is issued a group medical insurance policy. This single contract is
known as - ✔✔Master Policy
(202472025)
Why are dividends from a mutual insurer not subject to taxation? - ✔✔because
dividends are considered to be a return of premium
what kind of life insurance policy issued by a mutual insurer provides a return of
divisible surplus? - ✔✔participating life insurance policy
A plan in which an employer pays insurance benefits from a fund derived from the
employer's current revenues is called - ✔✔a self funded plan
An insurer's claim settlement practices are regulated by the - ✔✔states insurance
departments
people with higher loss exposure have the tendency to purchase insurance more often
than those of average risk. this is called - ✔✔adverse selection
Insurance represents the process of risk - ✔✔transference
under a contract of adhesion - ✔✔the terms must be accepted OR rejected in full
Legal purpose is a term used in contract law meaning - ✔✔there must be legal
reasons for entering into the contract
in order for a contact to be valid, it must - ✔✔contain an offer and acceptance
in an insurance contract the element that shows each party is giving something of
value is called - ✔✔consideration
, which of the following is present when an applicant stands to lose value if the insured
dies? - ✔✔insurable interest
which contract is insurable interest a component of? - ✔✔legal purpose
in an insurance contract,the applicant's "consideration" is the - ✔✔statements made
in the application and the premium
what makes an insurance policy a unilateral contract - ✔✔only the insurer is legally
bound
_____ is NOT an element of a valid contract - ✔✔countersignature
who is responsible for assembling the policy forms or insureds? - ✔✔insurance
carriers
all of the following are elements of an insurance policy EXCEPT - ✔✔claim forms
a common exclusion with Vision Plan is - ✔✔lasik surgery
The election of COBRA for continuation of health coverage will - ✔✔maintain the
same coverage and increase premium
an employer is issued a group medical insurance policy. This single contract is
known as - ✔✔Master Policy
