PA ACCIDENT AND HEALTH INSURANCE EXAM 2024 WITH 100% ACCURATE SOLUTIONS

Why are dividends from a mutual insurer not subject to taxation? - ANSWER ☑☑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? - ANSWER ☑☑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 - ANSWER ☑☑a self funded plan An insurer's claim settlement practices are regulated by the - ANSWER ☑☑states insurance departments people with higher loss exposure have the tendency to purchase insurance more often than those of average risk. this is called - ANSWER ☑☑adverse selection Insurance represents the process of risk - ANSWER ☑☑transference under a contract of adhesion - ANSWER ☑☑the terms must be accepted OR rejected in full Legal purpose is a term used in contract law meaning - ANSWER ☑☑there must be legal reasons for entering into the contract in order for a contact to be valid, it must - ANSWER ☑☑contain an offer and acceptance in an insurance contract the element that shows each party is giving something of value is called - ANSWER ☑☑consideration