PA ACCIDENT AND HEALTH INSURANCE 121 QUESTIONS AND ANSWERS 100% CORRECT 2023 (VERIFIED)

PA ACCIDENT AND HEALTH INSURANCE 121 QUESTIONS AND ANSWERS 100% CORRECT 2023 (VERIFIED) 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