Washington State Insurance Exam Practice Questions and Answers
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Course
Washington State Insurance
Institution
Washington State Insurance
Washington State Insurance Exam
Practice Questions and Answers
is the appearance or assumption of authority based on the actions, words,
or deeds of the principal or because of circumstances the principal created.
- Answer️️ -Apparent
Owned by the policyowner and issue participating polici...
Washington State Insurance Exam
Practice Questions and Answers
is the appearance or assumption of authority based on the actions, words,
or deeds of the principal or because of circumstances the principal created.
- Answer✔️✔️-Apparent
Owned 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. - Answer✔️✔️-Mutual
Company
A 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. - Answer✔️✔️-Sharing
Is 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. - Answer✔️✔️-Retention
Is 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. -
Answer✔️✔️-Express Authority
In order to be characterized as a pure risk, the loss must be due to chance,
definite, measurable, and predictable, but not catastrophic. - Answer✔️✔️-
Insurable Risk
Section 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. - Answer✔️✔️-Insurance Policy
Conditions
Type 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. - Answer✔️✔️-Loss Costs Rating
Is commonly applied in product liability cases. The business is then liable
for defective products, regardless of fault or negligence. - Answer✔️✔️-Strict
Liability
The part of the policy structure that describes the insured perils and the
method of indemnification. - Answer✔️✔️-Insuring Agreement
States the legal obligations and duties of the parties to the contract. -
Answer✔️✔️-Conditions
Provides for payment of the full policy amount in the event of a total loss
WITHOUT regard to actual value or depreciation. - Answer✔️✔️-Valued
Policy
In 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. - Answer✔️✔️-Contributory Negligence
A 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. -
Answer✔️✔️-Agreed Value
Includes those losses caused by continuous or repeated exposure to
conditions resulting in injury or damage to property that is neither
intended nor expected. - Answer✔️✔️-Occurance
Also known as an indirect loss, is a second financial loss caused by a
covered direct loss. - Answer✔️✔️-Consequential loss
Refers to other insurance written on the same risk, but not on the same
coverage basis. - Answer✔️✔️-Nonconcurrency
Four essential elements: Duty, breach, injury, and unbroken chain. -
Answer✔️✔️-Negligence
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