8/26/26, 12:13 PM WASHINGTON LAWS AND RULES PERTINENT TO INSURANCE EXAM ACTUAL EXAM 2026 | UPDATED QUESTIONS AND C…
WASHINGTON LAWS AND RULES PERTINENT TO
INSURANCE EXAM ACTUAL EXAM 2026 |
UPDATED QUESTIONS AND CORRECT ANSWERS
| GRADED A+ | VERIFIED ANSWERS | JUST
RELEASED
Terms in this set (303)
policy owner usually, but not always the person covered by the
policy
beneficiary the person who is paid when a claim
is submitted
agent/producer acts as a legal representative
of the insurance company
https://quizlet.com/1201972970/washington-laws-and-rules-pertinent-to-insurance-exam-actual-exam-2026-updated-questions-and-correct-answers-… 1/17
,8/26/26, 12:13 PM WASHINGTON LAWS AND RULES PERTINENT TO INSURANCE EXAM ACTUAL EXAM 2026 | UPDATED QUESTIONS AND C…
broker representative of the Insured, not the insurance
company
risk The chance or uncertainty of loss
Pure risk the chance of experiencing a loss (without the
possibility of gain). Only downside, no upside.
Speculative risk s the chance of loss one accepts in the hope of
realizing a gain
Risk avoidance staying away from risky activities altogether
Risk reduction reduce the chance of something bad happening
Risk shifting Get someone else to accept the risk
Buying insurance transfer a portion of your risk to the Insurer
Risk Retention the individual or business that opts not to buy
insurance retains the entire risk
https://quizlet.com/1201972970/washington-laws-and-rules-pertinent-to-insurance-exam-actual-exam-2026-updated-questions-and-correct-answers-… 2/17
, 8/26/26, 12:13 PM WASHINGTON LAWS AND RULES PERTINENT TO INSURANCE EXAM ACTUAL EXAM 2026 | UPDATED QUESTIONS AND C…
Indemnification an insurance concept that states that some
portions of the insurance industry prefer that we be
made only whole after a loss rather than coming
out ahead (Only getting back what you are owed,
not getting more than what you had to start with)
Subrogation the transfer to the Insurer of the Insured's rights to
recover damages from a responsible third party
Peril the cause of loss
Law of Large numbers the mathematical concept that makes it easier to
predict losses if we have a large number of
Insureds
Insurable losses are... Economic, Predictable, Accidental, Measurable,
Non-Catastrophic
non-participating companies Stock companies that exist for the sole purpose of
generating profits
for their stockholders
participating companies A company owned by its policy holders where the
profits are distributed among policy holders
Social Security act a guarantee that government
would never again allow workers (and their
families) to become
destitute
OASDI (Social Security) Old Age, Survivors, and Disability
Insurance...Federal Government law
https://quizlet.com/1201972970/washington-laws-and-rules-pertinent-to-insurance-exam-actual-exam-2026-updated-questions-and-correct-answers-… 3/17
WASHINGTON LAWS AND RULES PERTINENT TO
INSURANCE EXAM ACTUAL EXAM 2026 |
UPDATED QUESTIONS AND CORRECT ANSWERS
| GRADED A+ | VERIFIED ANSWERS | JUST
RELEASED
Terms in this set (303)
policy owner usually, but not always the person covered by the
policy
beneficiary the person who is paid when a claim
is submitted
agent/producer acts as a legal representative
of the insurance company
https://quizlet.com/1201972970/washington-laws-and-rules-pertinent-to-insurance-exam-actual-exam-2026-updated-questions-and-correct-answers-… 1/17
,8/26/26, 12:13 PM WASHINGTON LAWS AND RULES PERTINENT TO INSURANCE EXAM ACTUAL EXAM 2026 | UPDATED QUESTIONS AND C…
broker representative of the Insured, not the insurance
company
risk The chance or uncertainty of loss
Pure risk the chance of experiencing a loss (without the
possibility of gain). Only downside, no upside.
Speculative risk s the chance of loss one accepts in the hope of
realizing a gain
Risk avoidance staying away from risky activities altogether
Risk reduction reduce the chance of something bad happening
Risk shifting Get someone else to accept the risk
Buying insurance transfer a portion of your risk to the Insurer
Risk Retention the individual or business that opts not to buy
insurance retains the entire risk
https://quizlet.com/1201972970/washington-laws-and-rules-pertinent-to-insurance-exam-actual-exam-2026-updated-questions-and-correct-answers-… 2/17
, 8/26/26, 12:13 PM WASHINGTON LAWS AND RULES PERTINENT TO INSURANCE EXAM ACTUAL EXAM 2026 | UPDATED QUESTIONS AND C…
Indemnification an insurance concept that states that some
portions of the insurance industry prefer that we be
made only whole after a loss rather than coming
out ahead (Only getting back what you are owed,
not getting more than what you had to start with)
Subrogation the transfer to the Insurer of the Insured's rights to
recover damages from a responsible third party
Peril the cause of loss
Law of Large numbers the mathematical concept that makes it easier to
predict losses if we have a large number of
Insureds
Insurable losses are... Economic, Predictable, Accidental, Measurable,
Non-Catastrophic
non-participating companies Stock companies that exist for the sole purpose of
generating profits
for their stockholders
participating companies A company owned by its policy holders where the
profits are distributed among policy holders
Social Security act a guarantee that government
would never again allow workers (and their
families) to become
destitute
OASDI (Social Security) Old Age, Survivors, and Disability
Insurance...Federal Government law
https://quizlet.com/1201972970/washington-laws-and-rules-pertinent-to-insurance-exam-actual-exam-2026-updated-questions-and-correct-answers-… 3/17
