Exam (elaborations)
Washington State Insurance Exam Questions and Answers 2024
- Course
- Institution
Washington State Insurance Exam
[Show more]
Content preview
Washington State Insurance ExamApparent - answeris the appearance or assumption of authority based on the actions,
words, or deeds of the principal or because of circumstances the principal created.
Mutual Company - answerOwned by the policyowner and issue participating policies.
Policy owners are entitled to dividends, which are a return of excess premiums and are
therefore non-taxable. Dividends are not guaranteed.
Sharing - answerA method of dealing with risk for a group of individual persons or
businesses with the same or similar exposure to loss to share the losses that occur
within that group. A RECIPROCAL insurance exchange is a form of risk-sharing
arrangement.
Retention - answerIs the planned assumption of risk by the insured through the use of
deductibles, co-payments, or self-insurance. It is also known as self-insurance when the
insured accepts the responsibility for the loss before the insurance company pays.
Express Authority - answerIs the AUTHORITY a principal intends to grant to an agent
by means of the agent's contract. It is the authority that is written in the contract.
Insurable Risk - answerIn order to be characterized as a pure risk, the loss must be due
to chance, definite, measurable, and predictable, but not catastrophic.
Insurance Policy Conditions - answerSection of an insurance policy that indicates the
general rules or procedures that the insurer and insured agree to follow under the terms
of the policy. Examples: Inspection may be made as needed/ Changes to the policy
must be made by insurer and be in writing/ Liberalization clause/ Return of premiums,
which dictates methods used.
Loss Costs Rating - answerType of rating: Method developed by the insurance services
office Inc. (ISO) that provides an insurer with that portion of a rate that does not include
provisions of expenses or profit and are based on historical aggregate loss and loss
adjustment expenses projected through development to their ultimate value and through
trending to a future point in time.
Strict Liability - answerIs commonly applied in product liability cases. The business is
then liable for defective products, regardless of fault or negligence.
Insuring Agreement - answerThe part of the policy structure that describes the insured
perils and the method of indemnification.
, Conditions - answerStates the legal obligations and duties of the parties to the contract.
Valued Policy - answerProvides for payment of the full policy amount in the event of a
total loss WITHOUT regard to actual value or depreciation.
Contributory Negligence - answerIn states that have this, the defendant must have been
100% at fault for an accident and the claimant free of fault if the claimant is to be
successful in collecting damages.
Agreed Value - answerA property policy with provisions agreed upon by the insurer and
insured as to the amounts of insurance that represents a fair valuation for the property
at the time the insurance is written. The amount is paid in a loss, regardless of the
insured property's appreciation or depreciation.
Occurance - answerIncludes those losses caused by continuous or repeated exposure
to conditions resulting in injury or damage to property that is neither intended nor
expected.
Consequential loss - answerAlso known as an indirect loss, is a second financial loss
caused by a covered direct loss.
Nonconcurrency - answerRefers to other insurance written on the same risk, but not on
the same coverage basis.
Negligence - answerFour essential elements: Duty, breach, injury, and unbroken chain.
Stated Amount - answerThe value of the insured property is determined at the time the
policy is written. In the event of a loss, that amount is paid without regard to any
COINSURANCE provision. However, if the loss is less than total, the insurer has
salvage rights with the insured having first right of refusal of the salvage.
Personal Property - answerProperty that is moveable
Real Property - answerProperty that is non-moveable
Components - answerFactors that determine rates, including loss reserves, loss
adjusting expenses, operating expenses and profits.
Comparative Negligence - answerMany states, by statute, require that damage be
apportioned based upon the degree of negligence of each party in an accident.
Assignment - answerThe transfer of a legal right or interest in an insurance policy. In
property and casualty insurance, assignments of policies are usually valid only with the
prior written consent of the insurer. Example: transferring a policy to a friend who will be
taking over renters insurance when you move out.
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 julianah420. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now