PA Life, Accident, & Health Insurance Exam

PA Life, Accident, & Health Insurance Exam A breach of warranty - may void a contract. A condition that could result in a loss is known as an - exposure A conditional receipt is not given to an applicant unless - the initial premium has been paid. A contingent beneficiary will - receive the policy proceeds if the primary beneficiary dies before the insured. A corporation may buy a policy on a shareholder to provide for stock redemption in the event of the - shareholder's death. A foreign company - has their home office in another state. A group cannot be formed - just to buy insurance. Experience rating is for large groups only. A hazard is something that increases - the chance of loss. A joint and survivor life policy pays only - when the second insured dies. A joint life policy pays only - when the first insured dies. A juvenile life insurance policy is a - life insurance policy written on the life of a minor. A life insurance policy provision that allows coverage to continue even if the premium is not paid on time is known as the - grace period. A life insurance policy that has a flexible premium and allows the policyowner to self-direct their cash values into equities is known as - variable/universal life. A life insurance policy that has been surrendered for cash - may not be reinstated. A life insurance policy that invests its cash values in equities is known as - variable life. A life settlement contract is between - the life insurance policyowner and a third party. A loan may be taken from a whole life policy as soon as it - develops a cash value. A peril is - defined as a cause of loss, such as fire. A policy may not be voided - due to unequal consideration. A policy that provides for business continuation in the event that a business partner dies is based upon a - cross-purchase buy/sell agreement. A policyowner may exercise the free look provision - without giving any reason. A preferred risk is likely to receive - a premium discount. A producer may be personally liable when - violating the producer's contract. A producer's binding authority (if any) - is expressed (written down) in the producer's contract with the insurer the producer represents. A rated policy is one - issued to a substandard risk with dangerous hobbies or health problems. A reciprocal insurance company is managed by an - attorney-in-fact. A representation is defined as - the truth to the best of one's knowledge. A requirement for a valid contract - is offer and acceptance, or mutual agreement. A revocable beneficiary has no vested rights under - a life policy. A revocable beneficiary may - be changed at any time by the policyowner. A single premium - may buy a policy that is paid up for life. A single premium policy has an immediate - cash value. A specific and definite proposal to enter into a contract is known as - an offer. A standard risk is - one with an average life span. Most applicants are standard risks. A stock insurer - may pay dividends to its shareholders (stockholders), but they may not be guaranteed. A stock redemption plan is an - agreement whereby a corporation agrees to buy back the stock of a deceased shareholder. A universal life policy that has an investment component is called - variable universal life. A warranty is defined as - a sworn statement of truth, guaranteed to be true. Adjusting the premium paid on an adjustable whole life policy will - affect the face amount, and vice versa. Advertising the availability of insurance is not - considered to be an offer.