PENNSYLVANIA LIFE ACCIDENT AND HEALTH
INSURANCE EXAM 2025 NEWEST QUESTIONS
WITH DETAILED VERIFIED ANSWERS (100%
CORRECT) /ALREADY GRADED A+
The authority not expressly (written) granted, - right answerbut is
actual authority the producer has to transact normal business
activities, is known as implied authority.
The elements of a legal contract may be remembered - right answerby
the acronym C-O-A-L (consideration, offer, acceptance, legal purpose
and legal capacity).
A requirement for a valid contract - right answeris offer and
acceptance, or mutual agreement.
Advertising the availability of insurance is not - right
answerconsidered to be an offer.
A specific and definite proposal to enter into a contract is known as -
right answeran offer.
The consideration on a policy need - right answernot be equal.
A policy may not be voided - right answerdue to unequal consideration.
Under the consideration clause, - right answersomething of value must
be exchanged.
Because insurance contracts are contracts of adhesion, - right
answerpolicy ambiguities always favor the insured.
,Insurance policies are considered - right answerto be unilateral
contracts, in that only one party makes an enforceable promise the
insurer.
The principle of indemnity states - right answerthe purpose of
insurance is to restore the insured to the same position as before the
loss occurred.
The principle of utmost good faith states - right answerthat all parties
to an insurance transaction are honest.
A representation is defined as - right answerthe truth to the best of
one's knowledge.
A warranty is defined as - right answera sworn statement of truth,
guaranteed to be true.
A breach of warranty - right answermay void a contract.
Concealment is defined as - right answerthe failure to disclose a
material fact.
When an insurer voluntarily gives up the right to obtain information
that they are entitled to, - right answerthey have made a waiver.
Insurable interest - right answermust exist at the time of application,
but not necessarily at the time of a claim.
Insurable interest may be based on - right answereconomics or family
relationships.
An insurable interest exists if - right answersomeone would benefit if
another person continues to live.
Buying a life insurance policy - right answercreates an immediate
estate.
, When life insurance is used to pay estate taxes - right answerit is
known as estate conservation.
A life settlement contract is between - right answerthe life insurance
policyowner and a third party.
The human life value approach was created to - right answerestablish
what a family would lose in income upon the death of the sole or chief
income provider.
The needs approach to life insurance does not - right answerconsider
future earnings.
Stockholders in small, privately held closed corporations often enter
into - right answerbuy/sell agreements with the corporation that are
funded by life policies.
A policy that provides for business continuation in the event that a
business partner dies is based upon a - right answercross-purchase
buy/sell agreement.
A corporation may buy a policy on a shareholder to provide for stock
redemption in the event of the - right answershareholder's death.
A stock redemption plan is an - right answeragreement whereby a
corporation agrees to buy back the stock of a deceased shareholder.
Examples of third-party policyownership include - right answerkey
person and partnership insurance, as well as a policy written on the
life of a spouse or minor child.
Under an executive bonus, - right answerthe premium paid to the
employee as a bonus is deductible by the business and the amount
paid to or for the employee is reportable as taxable income to the
employee.
When life insurance is purchased as an executive bonus for a
corporate employee, - right answerthe policy belongs to the employee.
INSURANCE EXAM 2025 NEWEST QUESTIONS
WITH DETAILED VERIFIED ANSWERS (100%
CORRECT) /ALREADY GRADED A+
The authority not expressly (written) granted, - right answerbut is
actual authority the producer has to transact normal business
activities, is known as implied authority.
The elements of a legal contract may be remembered - right answerby
the acronym C-O-A-L (consideration, offer, acceptance, legal purpose
and legal capacity).
A requirement for a valid contract - right answeris offer and
acceptance, or mutual agreement.
Advertising the availability of insurance is not - right
answerconsidered to be an offer.
A specific and definite proposal to enter into a contract is known as -
right answeran offer.
The consideration on a policy need - right answernot be equal.
A policy may not be voided - right answerdue to unequal consideration.
Under the consideration clause, - right answersomething of value must
be exchanged.
Because insurance contracts are contracts of adhesion, - right
answerpolicy ambiguities always favor the insured.
,Insurance policies are considered - right answerto be unilateral
contracts, in that only one party makes an enforceable promise the
insurer.
The principle of indemnity states - right answerthe purpose of
insurance is to restore the insured to the same position as before the
loss occurred.
The principle of utmost good faith states - right answerthat all parties
to an insurance transaction are honest.
A representation is defined as - right answerthe truth to the best of
one's knowledge.
A warranty is defined as - right answera sworn statement of truth,
guaranteed to be true.
A breach of warranty - right answermay void a contract.
Concealment is defined as - right answerthe failure to disclose a
material fact.
When an insurer voluntarily gives up the right to obtain information
that they are entitled to, - right answerthey have made a waiver.
Insurable interest - right answermust exist at the time of application,
but not necessarily at the time of a claim.
Insurable interest may be based on - right answereconomics or family
relationships.
An insurable interest exists if - right answersomeone would benefit if
another person continues to live.
Buying a life insurance policy - right answercreates an immediate
estate.
, When life insurance is used to pay estate taxes - right answerit is
known as estate conservation.
A life settlement contract is between - right answerthe life insurance
policyowner and a third party.
The human life value approach was created to - right answerestablish
what a family would lose in income upon the death of the sole or chief
income provider.
The needs approach to life insurance does not - right answerconsider
future earnings.
Stockholders in small, privately held closed corporations often enter
into - right answerbuy/sell agreements with the corporation that are
funded by life policies.
A policy that provides for business continuation in the event that a
business partner dies is based upon a - right answercross-purchase
buy/sell agreement.
A corporation may buy a policy on a shareholder to provide for stock
redemption in the event of the - right answershareholder's death.
A stock redemption plan is an - right answeragreement whereby a
corporation agrees to buy back the stock of a deceased shareholder.
Examples of third-party policyownership include - right answerkey
person and partnership insurance, as well as a policy written on the
life of a spouse or minor child.
Under an executive bonus, - right answerthe premium paid to the
employee as a bonus is deductible by the business and the amount
paid to or for the employee is reportable as taxable income to the
employee.
When life insurance is purchased as an executive bonus for a
corporate employee, - right answerthe policy belongs to the employee.
