PA Health, life, and accident insurance
exam 2026 Questions Exam Prep with
Practice Questions, Answers & Detailed
Explanations
"Insurance Contract" - ✔✔ANSWER ✔✔-"A
legal agreement made between an insurance
company and an individual, where the insurer
collects a premium in exchange for the promise
to pay covered losses."
,"Risk Pooling" - ✔✔ANSWER ✔✔-"Combines
similar losses from many people so that the
average loss over the entire group is relatively
constant."
"Law of Large Numbers" - ✔✔ANSWER ✔✔-"As
the group increases in size, it is easier to predict
the number of future losses."
"Mortality" - ✔✔ANSWER ✔✔-"The rate at
which people die."
"Morbidity" - ✔✔ANSWER ✔✔-"The rate at
which people get sick, injured or disabled."
"Risk" - ✔✔ANSWER ✔✔-"The possibility of a
loss occurring; only pure risks are insurable."
,"Loss" - ✔✔ANSWER ✔✔-"The unintentional
decrease in the value of an asset due to a
peril."
"Exposure" - ✔✔ANSWER ✔✔-"The condition
of being prone to loss due to a hazard or
uncertain event."
"Peril" - ✔✔ANSWER ✔✔-"The cause of the
loss and the event insured against."
"Hazard" - ✔✔ANSWER ✔✔-"Anything that
increases the chance of loss occurring from a
peril."
, "Physical Hazard" - ✔✔ANSWER ✔✔-"Physical
characteristics that raise the loss potential for a
particular peril."
"Moral Hazard" - ✔✔ANSWER ✔✔-"A person's
character, habits, or values that increase the
chance of loss."
"Morale Hazard" - ✔✔ANSWER ✔✔-"An
insured's careless attitude or indifference
increasing the chance of loss."
"Legal Hazard" - ✔✔ANSWER ✔✔-"Laws or
regulations that increase the chance or amount
of loss."
"Risk Avoidance" - ✔✔ANSWER ✔✔-
"Eliminating exposure to a risk."
exam 2026 Questions Exam Prep with
Practice Questions, Answers & Detailed
Explanations
"Insurance Contract" - ✔✔ANSWER ✔✔-"A
legal agreement made between an insurance
company and an individual, where the insurer
collects a premium in exchange for the promise
to pay covered losses."
,"Risk Pooling" - ✔✔ANSWER ✔✔-"Combines
similar losses from many people so that the
average loss over the entire group is relatively
constant."
"Law of Large Numbers" - ✔✔ANSWER ✔✔-"As
the group increases in size, it is easier to predict
the number of future losses."
"Mortality" - ✔✔ANSWER ✔✔-"The rate at
which people die."
"Morbidity" - ✔✔ANSWER ✔✔-"The rate at
which people get sick, injured or disabled."
"Risk" - ✔✔ANSWER ✔✔-"The possibility of a
loss occurring; only pure risks are insurable."
,"Loss" - ✔✔ANSWER ✔✔-"The unintentional
decrease in the value of an asset due to a
peril."
"Exposure" - ✔✔ANSWER ✔✔-"The condition
of being prone to loss due to a hazard or
uncertain event."
"Peril" - ✔✔ANSWER ✔✔-"The cause of the
loss and the event insured against."
"Hazard" - ✔✔ANSWER ✔✔-"Anything that
increases the chance of loss occurring from a
peril."
, "Physical Hazard" - ✔✔ANSWER ✔✔-"Physical
characteristics that raise the loss potential for a
particular peril."
"Moral Hazard" - ✔✔ANSWER ✔✔-"A person's
character, habits, or values that increase the
chance of loss."
"Morale Hazard" - ✔✔ANSWER ✔✔-"An
insured's careless attitude or indifference
increasing the chance of loss."
"Legal Hazard" - ✔✔ANSWER ✔✔-"Laws or
regulations that increase the chance or amount
of loss."
"Risk Avoidance" - ✔✔ANSWER ✔✔-
"Eliminating exposure to a risk."
