PA Accident and Health Insurance 121 Questions and Answers 100% correct

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PA Accident and Health Insurance 121 Questions and Answers 100% correct 1. Why are dividends from a mutual insurer not subject to taxation? Answer: 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? Answer: 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 Answer: a self funded plan 4. An insurer's claim settlement practices are regulated by the Answer: 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 Answer: adverse selection 6. Insurance represents the process of risk Answer: transference 7. under a contract of adhesion Answer: the terms must be accepted OR rejected in full 8. Legal purpose is a term used in contract law meaning Answer: there must be legal reasons for entering into the contract 9. in order for a contact to be valid, it must Answer: contain an offer and acceptance 10. in an insurance contract the element that shows each party is giving something of value is called Answer: consideration 11. which of the following is present when an applicant stands to lose value if the insured dies? Answer: insurable interest 12. which contract is insurable interest a component of? Answer: legal purpose [Show More]

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