PA LIFE, ACCIDENT, & HEALTH INSURANCE EXAM Q AND A

PA LIFE, ACCIDENT, & HEALTH
INSURANCE EXAM Q AND A

Insurancevy-vyanswer--
definedvyasvythevytransfervyofvyPUREvyriskvytovythevyinsurancevycompanyvyinvyconsideratio
nvyforvyavypremium.

Thevychancevyofvylossvywithoutvyanyvychancevyofvygainvyisvycalledvy-vyanswer--purevyrisk

Speculativevyriskvy-vyanswer--
hasvythevypossibilityvyforvygainvyorvylossvyandvyisvynotvyinsurable.

Riskvyisvydefinedvyasvythevy-vyanswer--chancevyofvyloss.

Avyconditionvythatvycouldvyresultvyinvyavylossvyisvyknownvyasvyanvy-vyanswer--exposure

Avyhazardvyisvysomethingvythatvyincreasesvy-vyanswer--thevychancevyofvyloss.

Thevypresencevyofvyavyphysicalvyhazardvy-vyanswer--
increasesvythevychancevyofvyavylossvyoccurring.

Avyperilvyisvy-vyanswer--definedvyasvyavycausevyofvyloss,vysuchvyasvyfire.

Tovybevyinsurable,vy-vyanswer--lossesvymustvybevycalculable.

Thevylawvyofvylargevynumbersvy-vyanswer--
allowsvyinsurersvytovypredictvyclaimsvymorevyaccurately.

Thevylawvyofvylargevynumbersvyappliesvytovy-vyanswer--
groupsvyofvypeople,vynotvytovyindividuals.

Thevymorevypeoplevyinvythevygroup,vy-vyanswer--
thevymorevyaccuratevythevypredictionsvyare.

Mostvyinsurersvybuyvyreinsurancevy-vyanswer--
tovyprotectvythemselvesvyinvythevyeventvyofvyavycatastrophicvyloss.

Insurancevylawsvyarevynotvyrequiredvy-vyanswer--
tovybevyuniformvyfromvyonevystatevytovyanother.

Avystockvyinsurervy-vyanswer--
mayvypayvydividendsvytovyitsvyshareholdersvy(stockholders),vybutvytheyvymayvynotvybevyguar
anteed.

Avyreciprocalvyinsurancevycompanyvyisvymanagedvybyvyanvy-vyanswer--attorney-in-fact.

, Anvyunincorporatedvyassociationvyofvyindividualsvywhovyinsurevyeachvyothervyisvyknownvyas
vy-vyanswer--avyreciprocalvyinsurer.



Thevygovernmentvyoffersvyinsurancevyprimarilyvybasedvyuponvy-vyanswer--
socialvyneeds,vysuchvyasvyfloodvyinsurancevyandvyworkersvycompensation,vybutvydoesvynot
vyoffervyinsurancevyforvythevypurposevyofvypreventingvyfraud.



Avyforeignvycompanyvy-vyanswer--hasvytheirvyhomevyofficevyinvyanothervystate.

AnvyinsurervyincorporatedvyoutsidevyofvythevyU.S.vywhovysellsvyinvythevyU.S.vyisvy-vyanswer--
anvyalienvycompany.

Avyproducervymayvybevypersonallyvyliablevywhenvy-vyanswer--
violatingvythevyproducer'svycontract.

Producersvyrepresentvy-vyanswer--thevyinsurancevycompany,vynotvythevyinsured.

Independentvyproducersvy-vyanswer--
ownvytheirvyownvyaccountsvyandvyarevynotvyinsurancevycompanyvyemployees.

Producersvyhavevy-vyanswer--express,vyimpliedvyandvyapparentvyauthority.

Thevyauthorityvyavyproducervy-vyanswer--
hasvythatvyisvywrittenvyinvyhisvyorvyhervycontractvyisvyknownvyasvyexpressvyauthority.

Avyproducer'svybindingvyauthorityvy(ifvyany)vy-vyanswer--
isvyexpressedvy(writtenvydown)vyinvythevyproducer'svycontractvywithvythevyinsurervythevyprod
ucervyrepresents.

Thevyauthorityvynotvyexpresslyvy(written)vygranted,vy-vyanswer--
butvyisvyactualvyauthorityvythevyproducervyhasvytovytransactvynormalvybusinessvyactivities,vyi
svyknownvyasvyimpliedvyauthority.

Thevyelementsvyofvyavylegalvycontractvymayvybevyrememberedvy-vyanswer--
byvythevyacronymvyC-O-A-
Lvy(consideration,vyoffer,vyacceptance,vylegalvypurposevyandvylegalvycapacity).

Avyrequirementvyforvyavyvalidvycontractvy-vyanswer--
isvyoffervyandvyacceptance,vyorvymutualvyagreement.

Advertisingvythevyavailabilityvyofvyinsurancevyisvynotvy-vyanswer--
consideredvytovybevyanvyoffer.

Avyspecificvyandvydefinitevyproposalvytovyentervyintovyavycontractvyisvyknownvyasvy-vyanswer--
anvyoffer.

Thevyconsiderationvyonvyavypolicyvyneedvy-vyanswer--notvybevyequal.

Avypolicyvymayvynotvybevyvoidedvy-vyanswer--duevytovyunequalvyconsideration.