PA Life, Accident, & Health Insurance
Exam
A breach of warranty - ANS-may void a contract.
A condition that could result in a loss is known as an - ANS-exposure
A conditional receipt is not given to an applicant unless - ANS-the initial premium has
been paid.
A contingent beneficiary will - ANS-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 - ANS-shareholder's death.
A foreign company - ANS-has their home office in another state.
A group cannot be formed - ANS-just to buy insurance.
Experience rating is for large groups only.
A hazard is something that increases - ANS-the chance of loss.
A joint and survivor life policy pays only - ANS-when the second insured dies.
A joint life policy pays only - ANS-when the first insured dies.
A juvenile life insurance policy is a - ANS-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 - ANS-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 - ANS-variable/universal life.
A life insurance policy that has been surrendered for cash - ANS-may not be reinstated.
, A life insurance policy that invests its cash values in equities is known as - ANS-variable
life.
A life settlement contract is between - ANS-the life insurance policyowner and a third
party.
A loan may be taken from a whole life policy as soon as it - ANS-develops a cash value.
A peril is - ANS-defined as a cause of loss, such as fire.
A policy may not be voided - ANS-due to unequal consideration.
A policy that provides for business continuation in the event that a business partner dies
is based upon a - ANS-cross-purchase buy/sell agreement.
A policyowner may exercise the free look provision - ANS-without giving any reason.
A preferred risk is likely to receive - ANS-a premium discount.
A producer may be personally liable when - ANS-violating the producer's contract.
A producer's binding authority (if any) - ANS-is expressed (written down) in the
producer's contract with the insurer the producer represents.
A rated policy is one - ANS-issued to a substandard risk with dangerous hobbies or
health problems.
A reciprocal insurance company is managed by an - ANS-attorney-in-fact.
A representation is defined as - ANS-the truth to the best of one's knowledge.
A requirement for a valid contract - ANS-is offer and acceptance, or mutual agreement.
A revocable beneficiary has no vested rights under - ANS-a life policy.
A revocable beneficiary may - ANS-be changed at any time by the policyowner.
A single premium - ANS-may buy a policy that is paid up for life.
A single premium policy has an immediate - ANS-cash value.
Exam
A breach of warranty - ANS-may void a contract.
A condition that could result in a loss is known as an - ANS-exposure
A conditional receipt is not given to an applicant unless - ANS-the initial premium has
been paid.
A contingent beneficiary will - ANS-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 - ANS-shareholder's death.
A foreign company - ANS-has their home office in another state.
A group cannot be formed - ANS-just to buy insurance.
Experience rating is for large groups only.
A hazard is something that increases - ANS-the chance of loss.
A joint and survivor life policy pays only - ANS-when the second insured dies.
A joint life policy pays only - ANS-when the first insured dies.
A juvenile life insurance policy is a - ANS-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 - ANS-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 - ANS-variable/universal life.
A life insurance policy that has been surrendered for cash - ANS-may not be reinstated.
, A life insurance policy that invests its cash values in equities is known as - ANS-variable
life.
A life settlement contract is between - ANS-the life insurance policyowner and a third
party.
A loan may be taken from a whole life policy as soon as it - ANS-develops a cash value.
A peril is - ANS-defined as a cause of loss, such as fire.
A policy may not be voided - ANS-due to unequal consideration.
A policy that provides for business continuation in the event that a business partner dies
is based upon a - ANS-cross-purchase buy/sell agreement.
A policyowner may exercise the free look provision - ANS-without giving any reason.
A preferred risk is likely to receive - ANS-a premium discount.
A producer may be personally liable when - ANS-violating the producer's contract.
A producer's binding authority (if any) - ANS-is expressed (written down) in the
producer's contract with the insurer the producer represents.
A rated policy is one - ANS-issued to a substandard risk with dangerous hobbies or
health problems.
A reciprocal insurance company is managed by an - ANS-attorney-in-fact.
A representation is defined as - ANS-the truth to the best of one's knowledge.
A requirement for a valid contract - ANS-is offer and acceptance, or mutual agreement.
A revocable beneficiary has no vested rights under - ANS-a life policy.
A revocable beneficiary may - ANS-be changed at any time by the policyowner.
A single premium - ANS-may buy a policy that is paid up for life.
A single premium policy has an immediate - ANS-cash value.
