PA Life & Health Insurance Exam Questions and Complete Solutions

Accident An unplanned, unforeseen event which occurs suddenly and at an unspecified place. Accident Insurance A type of insurance that protects the insured against loss due to accidental bodily injury. Accidental Bodily Injury Unplanned, unforeseen traumatic injury to the body. Accidental Death and Dismemberment An insurance policy which pays a specified amount or a specified multiple of the insured's benefit if the insured dies, loses his/her sight, or loses two limbs due to an accident. Accidental Death Benefits A policy rider that states that the cause of death will be analyzed to determine if it complies with the policy description of accidental death. Acquired Immunodeficiency Syndrome (AIDS) An infectious and incurable caused by the human immunodeficiency virus (HIV). Activities of daily living Activities individuals must do every day such as moving about, getting dressed, eating, bathing, etc. Actual Charge The amount a physician or supplier actually bills for a particular service or supply. Adhesion A contract offered on a "take it or leave it" basis by an insurer, in which the insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured. Admitted (Authorized) Insurer An insurance company authorized and licensed to transact insurance in a particular state. Adult Day Care A program for impaired adults that attempts to meet their health, social, and functional needs in a setting away from their homes. Adverse Selection The tendency of risks with higher probability of loss to purchase and maintain insurance more often that the risks who present lower probability. Agent An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of an insurer.