PA LIFE, ACCIDENT, HEALTH INSURANCE EXAM

PDF Download PA LIFE, ACCIDENT, & HEALTH INSURANCE EXAM Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Conversely, in a limited pay policy, the premiums

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are paid for a shorter period of time.

Question 2: An incomplete application is

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usually returned.

Question 3: A policy may not be voided

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due to unequal consideration.

Question 4: Whole life benefits are

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bundled (packaged).

Question 5: A hazard is something that increases

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the chance of loss.

Question 6: Term insurance may be converted to

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whole life, but not the reverse

Question 7: The company underwriter determines the

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final rating classification, not the producer.

Question 8: The presence of a physical hazard

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increases the chance of a loss occurring.

Question 9: Limited pay whole life insurance has limits

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that pertain either to the number of years payments must be made, such as 20 pay-life, or the age by which all premiums must be paid, such as life paid-up at 65.

Question 10: The human life value approach was created to

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establish what a family would lose in income upon the death of the sole or chief income provider.

Question 11: The authority a producer

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has that is written in his or her contract is known as express authority.

Question 12: Insurance laws are not required

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to be uniform from one state to another.

Question 13: The consideration on a policy need

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not be equal.

Question 14: However, should the underwriter approve it,

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coverage begins and the company has waived its ability to contest a claim.Question 15: An insurer incorporated outside of the U.S. who sells in the U.S. is

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an alien company.

Question 16: Agents (producers) are also known as

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field underwriters.

Question 17: An insurable interest exists if

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someone would benefit if another person continues to live.

Question 18: A stock redemption plan is an

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agreement whereby a corporation agrees to buy back the stock of a deceased shareholder.

Question 19: The principle of indemnity states

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the purpose of insurance is to restore the insured to the same position as before the loss occurred.

Question 20: A preferred risk is likely to receive

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a premium discount.

Question 21: A foreign company

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has their home office in another state.

Question 22: Conditional or binding receipts are used in

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life and health insurance.Question 23: A corporation may buy a policy on a shareholder to provide for stock redemption in the event of the

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shareholder's death.

Question 24: Term insurance is

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renewable without a physical examination, up to a certain age.Question 25: When life insurance is purchased as an executive bonus for a corporate employee,

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the policy belongs to the employee.

Question 26: The law of large numbers

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allows insurers to predict claims more accurately.

Question 27: A standard risk is

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one with an average life span. Most applicants are standard risks.Question 28: An unincorporated association of individuals who insure each other is known as

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a reciprocal insurer.Question 29: A policy that provides for business continuation in the event that a business partner dies is based upon a

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cross-purchase buy/sell agreement.