PA Accident and Health Insurance.pdf file:///C:/Users/HP/Desktop/NIW/PA%20Accident%20and%20Heal
PA Accident and Health Insurance Exam Questions
& Answers
1. Why are dividends from a mutual insurer not subject to taxation?
ANS because dividends are considered to be a return of premium
2. what kind of life insurance policy issued by a mutual insurer provides a return of
divisible surplus?
ANS participating life insurance policy
3. A plan in which an employer pays insurance benefits from a fund derived from the
employer's current revenues is called
ANS a self funded plan
4. An insurer's claim settlement practices are regulated by the
ANS states insurance departments
5. people with higher loss exposure have the tendency to purchase insurance more often
than those of average risk. this is called
ANS adverse selection
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6. Insurance represents the process of risk
ANS transference
7. under a contract of adhesion
ANS the terms must be accepted OR rejected in full
8. Legal purpose is a term used in contract law meaning
ANS there must be legal reasons for entering into the contract
9. in order for a contact to be valid, it must
ANS contain an offer and acceptance
10. in an insurance contract the element that shows each party is giving something
of value is called
ANS consideration
11. which of the following is present when an applicant stands to lose value if the insured
dies?
ANS insurable interest
12. which contract is insurable interest a component of?
ANS legal purpose
13. in an insurance contract,the applicant's "consideration" is the
ANS statements made in the application and the premium
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14. what makes an insurance policy a unilateral contract
ANS only the insurer is legally bound
15. is NOT an element of a valid contract
ANS countersignature
16. who is responsible for assembling the policy forms or insureds?
ANS insurance carriers
17. all of the following are elements of an insurance policy EXCEPT
ANS claim forms
18. a common exclusion with Vision Plan is
ANS lasik surgery
19. The election of COBRA for continuation of health coverage will
ANS maintain the same coverage and increase premium
20. an employer is issued a group medical insurance policy.This single con- tract is
known as
ANS Master Policy
21. Credit Accident and Health plans are designed to
ANS help pay off existing loans during periods of disability
22. what is the contract called that is issued to an employer for a Group Medical
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