Wisconsin Accident and Health Insurance Exam Questions With Complete Answers 2024/2025
9 views 0 purchase
Course
Wisconsin
Institution
Wisconsin
Wisconsin Accident and Health Insurance Exam Questions With Complete Answers 2024/2025
Dividends from a stock company are normally sent to:
Beneficiaries
Shareholders
Policy holders
Insureds - Correct Answer Shareholders
Which of the following financial products creates an instant estate,...
Wisconsin Accident and Health
Insurance Exam Questions With
Complete Answers 2024/2025
Dividends from a stock company are normally sent to:
Beneficiaries Shareholders
Policy holders
Insureds - Correct Answer Shareholders
Which of the following financial products creates an instant estate, no matter when the date of death?
Mutual funds Life insurance
Certificate of deposit
Deferred annuity - Correct Answer Life insurance
Which of the following outlines the authority given to the producer on behalf of the insurer? Rebating arrangement
Commingling contract
Controlled business clause Producer contract - Correct Answer Producer contract
Dividends from a mutual insurance company are paid to whom?
Policyholders
Beneficiaries
Preferred stockholders
Stockholders - Correct Answer Policyholders
A stock insurance company is owned by its
Officers
Board directors Policyowners Shareholders - Correct Answer Policyowners
A reciprocal insurer typically has an administrator who manages the premiums collected
from the group's members. This administrator is called a(n)
Reciprocal commissioner Attorney general Attorney-in-fact
Reciprocal - Correct Answer Attorney-in-fact which reinsurance contract between two insurers involves an automatic sharing of the risks assumed? Arbitrage reinsurance Facultative reinsurance Excess reinsurance Treaty reinsurance - Correct Answer Treaty reinsurance
A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a
Risk retention group
Treaty insurer Risk assumption group
Captive insurer - Correct Answer Risk retention group
Which group is the Do not Registry designed to protect against?
Telemarketers
Charities
Political organizations Relatives - Correct Answer Telemarketers
who regulates an insurer's claim settlement practices?
National Association of Claim Adjusters State attorney general National Association of insurance Commissioners State insurance departments - Correct Answer State insurance departments
Which of the following is Not an example of risk retention? Becoming aware of a risk and taking no action Self-insuring a given risk
Deciding a business deal is risky but going through with it anyways
Not doing a business deal after deciding it would be too risky - Correct Answer Not doing a business deal after deciding it would be too risky
Which of the following describes the act of insuring a risk against possible loss? Risk avoidance Risk transfer Hazard reduction Loss management - Correct Answer Risk transfer
ABC Company is attempting to minimize the severity of potential losses within its company. The company is engaged in risk
Transference Retention
Reduction Avoidance - Correct Answer Reduction Which of these statements regarding insurance is false?
One way insurers deal with catastrophic loss is through reinsurance
As the number of insured units increases, the number of losses decreases Speculative risk cannot be insured Pure risk can be insured - Correct Answer As the number of insured units increases, the number of losses decreases
Purchasing insurance is an example of risk
Transference Avoidance Retention
Sharing - Correct Answer Transference
A business becoming incorporated is an example of risk
Reduction Severance Retention Transfer - Correct Answer Transfer
How can an insurance company minimize exposure to loss? Risk concealing
Reinsuring risks
Reissuance Risk assumption - Correct Answer Reinsuring risks
An insurable risk requires
That the chance for both a loss or gain exists The loss must be catastrophic That the chance of loss be calculated
that the loss must be incalculable - Correct Answer That the chance of loss be calculated
which of the following can be defined as "the potential for loss"?
Hazard
Risk
Transference
Peril - Correct Answer Risk
Which term describes the elimination of a hazard? Risk avoidance Risk retention Risk transference Risk pooling - Correct Answer Risk avoidance
which one of these is Not considered to be an element of an insurable risk? Speculative risk Pure risk Loss cannot be catastrophic Loss must be due to chance - Correct Answer Speculative risk
An insurer has a contractual agreement which transfers a portion of its risk exposure to another insurer. What type of contractual arrangement is this?
Coinsurance contract Mutuality agreement Reinsurance contract
Reciprocity arrangement - Correct Answer Reinsurance contract
A hold-harmless clause is an example of risk
Avoidance Retention Transfer Sharing - Correct Answer Transfer
The law of large numbers enables an insurer to
Predict losses Avoid adverse selection Classify rates Assure company profiles - Correct Answer Predict losses
What happens when an initial offer is answered with a counteroffer? An arbitrator decides on a compromise
The counteroffer is legally enforceable Initial offer is void
Initial offer is automatically accepted - Correct Answer Initial offer is void
What qualifies as acceptance of an insurance contract offer? A declined policy
An issued policy
The application an initial premium The initial premium only - Correct Answer An issued policy
XYZ Insurance Company gives direct authority to its producers to sell insurance through
an agency contract, but nothing is stated regarding the collection of premiums. Which authority grants the producer the right to collect premiums?
Implied authority Apparent authority Express authority Assumed authority - Correct Answer Implied authority
The power directly given to a producer in an agency contract are called
Express
Apparent
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller purityireri233. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.39. You're not tied to anything after your purchase.
