PA LIFE INSURANCE EXAM, ||
Questions Merged With Correct
Complete Solutions || Already Graded
A+ || 2026-2027 Latest Update!!!
Insurance - ANSWER-created as a practical means to reduce the
financial impact of an unexpected loss.
life insurance - ANSWER-transfers to a life insurance company the risk
of financial loss resulting from the death of an insured person. The life
insurance company guarantees to pay a specified amount of money to
a beneficiary when the insured dies.
annuity - ANSWER-A cash contract between a person (the annuity
owner) and a life insurance company (the annuity issuer). The annuity
is set up to accumulate and/or distribute a sum of money.
beneficiary - ANSWER-person or persons designated to receive
benefits from insurance policy or annuity.
,health insurance - ANSWER-helps to lessen the financial impact of an
insured's illness or disability by transferring the risk to a health
insurance company.
property and casualty insurance - ANSWER-covers damage to a loss of
property such as a home or automobile by compensating the insured
for the amount of the loss or by providing a specific sum of money
according to the terms of the insurance policy
agents - ANSWER-producers, legally considered representatives of the
insure that employs them,
risk - ANSWER-the chance of loss
loss - ANSWER-an unwelcome and unplanned reduction in economic
value`
pure risk - ANSWER-involves only the chance of a loss, and no gain to
the person assuming the risk, including untimely death or serious
illness or disability of a person. (insurable)
speculative risk - ANSWER-results in loss or gain. examples include:
gambling and investing in the stock market. (uninsurable)
direct loss - ANSWER-immediate result of an event involving an
insured peril. example: death of a family breadwinner
indirect loss - ANSWER-more remote, example: loss of a decedents
income is an indirect loss resulting from the direct loss of the insured's
life.
exposure or loss exposure - ANSWER-state of being subject to a
possible loss. example: a coal miner is generally exposed to a greater
, risk of death than an accountant, therefore a higher premium would
be charged to insure the coal miner.
exposure units - ANSWER-basis for each applicant’s premium.
example: a life insurer will assign more exposure units to an applicant
who is a coal miner than one who is an accountant.
peril - ANSWER-immediate cause of a loss, example: death, disability
and accidental injuries or sickness.
hazard - ANSWER-a condition that raises the chance of encountering a
peril or increases the severity of a loss.
moral hazards - ANSWER-an individual’s traits or habits that increase
the chance of a loss. examples: alcoholism, smoking and drug
addiction.
morale hazards - ANSWER-individual tendencies arising from a state of
mind, attitude or indifference to loss. example: driving recklessly ( In
fact, doing anything recklessly because "I have insurance for that"
demonstrates a morale hazard.)
physical hazards - ANSWER-individual physical characteristics that
increase the chance of loss. They exist due to a person's physical
condition as opposed to arising from his or her character. High
cholesterol is an example of a physical hazard.
risk management techniques - ANSWER-avoiding the risk
reducing the risks
retaining the risks
sharing the risks
Questions Merged With Correct
Complete Solutions || Already Graded
A+ || 2026-2027 Latest Update!!!
Insurance - ANSWER-created as a practical means to reduce the
financial impact of an unexpected loss.
life insurance - ANSWER-transfers to a life insurance company the risk
of financial loss resulting from the death of an insured person. The life
insurance company guarantees to pay a specified amount of money to
a beneficiary when the insured dies.
annuity - ANSWER-A cash contract between a person (the annuity
owner) and a life insurance company (the annuity issuer). The annuity
is set up to accumulate and/or distribute a sum of money.
beneficiary - ANSWER-person or persons designated to receive
benefits from insurance policy or annuity.
,health insurance - ANSWER-helps to lessen the financial impact of an
insured's illness or disability by transferring the risk to a health
insurance company.
property and casualty insurance - ANSWER-covers damage to a loss of
property such as a home or automobile by compensating the insured
for the amount of the loss or by providing a specific sum of money
according to the terms of the insurance policy
agents - ANSWER-producers, legally considered representatives of the
insure that employs them,
risk - ANSWER-the chance of loss
loss - ANSWER-an unwelcome and unplanned reduction in economic
value`
pure risk - ANSWER-involves only the chance of a loss, and no gain to
the person assuming the risk, including untimely death or serious
illness or disability of a person. (insurable)
speculative risk - ANSWER-results in loss or gain. examples include:
gambling and investing in the stock market. (uninsurable)
direct loss - ANSWER-immediate result of an event involving an
insured peril. example: death of a family breadwinner
indirect loss - ANSWER-more remote, example: loss of a decedents
income is an indirect loss resulting from the direct loss of the insured's
life.
exposure or loss exposure - ANSWER-state of being subject to a
possible loss. example: a coal miner is generally exposed to a greater
, risk of death than an accountant, therefore a higher premium would
be charged to insure the coal miner.
exposure units - ANSWER-basis for each applicant’s premium.
example: a life insurer will assign more exposure units to an applicant
who is a coal miner than one who is an accountant.
peril - ANSWER-immediate cause of a loss, example: death, disability
and accidental injuries or sickness.
hazard - ANSWER-a condition that raises the chance of encountering a
peril or increases the severity of a loss.
moral hazards - ANSWER-an individual’s traits or habits that increase
the chance of a loss. examples: alcoholism, smoking and drug
addiction.
morale hazards - ANSWER-individual tendencies arising from a state of
mind, attitude or indifference to loss. example: driving recklessly ( In
fact, doing anything recklessly because "I have insurance for that"
demonstrates a morale hazard.)
physical hazards - ANSWER-individual physical characteristics that
increase the chance of loss. They exist due to a person's physical
condition as opposed to arising from his or her character. High
cholesterol is an example of a physical hazard.
risk management techniques - ANSWER-avoiding the risk
reducing the risks
retaining the risks
sharing the risks
