PLAHI Pennsylvania Life Accident and Health Insurance Exam - Set 1 - Part 3
Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.
Question 41: An underwriter reviews a proposed coverage and notes that the potential loss cannot be measured in dollars, that a single event could bankrupt the insurer, and that the group of exposures is tiny. Which of the following elements of insurable risk are missing?
Question 42: One Pennsylvania insurer is owned by shareholders and pays them a taxable dividend when it profits, while another is owned by its policyholders and may return excess premium to them. Which of the following correctly identifies these two insurers in order?
Question 43: An insurer incorporated in Pennsylvania writes coverage across the border in Ohio, while a second insurer incorporated in Canada writes coverage here in Pennsylvania. Which of the following correctly describes each of those companies from the perspective of a Pennsylvania regulator?
Question 44: A group of Pennsylvania physicians forms an unincorporated arrangement in which each member is assessed for the losses of the others, and the operation is run by an attorney-in-fact. Which of the following describes what they have formed?
Question 45: An applicant in Bucks County completes an application, discloses her health history, and pays the initial premium. The insurer reviews the submission and issues the policy as requested. Which of the following contract elements has the applicant supplied?
Question 46: A policy is drafted entirely by the insurer, and the applicant may accept it or decline it but cannot negotiate its wording. When a clause turns out to be ambiguous, which of the following describes how a court will handle it?
Question 47: An insurer's written agency contract lists exactly which products a producer may sell, how applications must be submitted, and what premium she may accept. Which of the following types of authority does that written contract confer on the producer?
Question 48: An insurer knowingly accepts a late premium several times without objection, and the insured comes to rely on that pattern. The insurer later tries to deny a claim on the ground that the premium was late. Which of the following prevents that denial?
Question 49: An applicant answers the underwriting questions on a Pennsylvania life application to the best of her knowledge and belief, and those answers are treated as statements believed to be true rather than absolute guarantees. Which of the following describes her answers?
Question 50: An applicant for a Pennsylvania life policy deliberately says nothing about a serious heart condition he knows the insurer would want to evaluate, and the omission is material to the underwriting decision. Which of the following describes what he has done?
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