Washington State Insurance Exam Questions and
Complete Answers| Verified 100% Correct|
Newest 2025
Stated Amount - ✔✔The 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 - ✔✔Property that is moveable
Real Property - ✔✔Property that is non-moveable
Components - ✔✔Factors that determine rates, including loss reserves, loss adjusting
expenses, operating expenses and profits.
Comparative Negligence - ✔✔Many states, by statute, require that damage be
apportioned based upon the degree of negligence of each party in an accident.
Assignment - ✔✔The 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.
Additional Coverage - ✔✔Provides an additional amount of coverage for specific loss
expense, at no additional premium.
,Surplus Lines - ✔✔Insurance that is not available in the regular market place from
admitted insurers. Usually involves insurance of high risk individuals.
Defamation - ✔✔Statements that are false as to the financial condition of any insurer
Per occurrence (accident) limit - ✔✔The limit s expressed in an auto policy is the limit
per accident. After payment of a claim, the limits are restored to the original amount for
the next accident.
Proximate cause - ✔✔Is an act or event that is the natural and reasonablely
forseeable cause of damage or an event that occurs and damages property or causes
bodily harm.
When an applicant remit premium money to the insurer - ✔✔When must a binder be
given
Homeowner coverage - ✔✔Unscheduled personal property damage, bodily injury to
others, personal liabilities
Statute of limitations - ✔✔Establishes a time limits in which recovery can be
daughter for certain kinds of injuries or damages.
Washington property and casualty insurance guaranty association - ✔✔
Direct loss - ✔✔Physical damage to buildings and/or personal property.
, Blanket insurance - ✔✔Single property insurance policy that provides coverage for
multiple classes of property at one location, or for one or more classes of property at
multiple locations
Specific insurance - ✔✔A property insurance policy that covers a specific kind or unit
of property for a specific amount of insurance
Loss Valuation - ✔✔A factor in determining the premium charged in the amount of
insurance required
Actual cash value - ✔✔Method of valuation reinforces the principle of Indemnity
because it recognizes the reduction of value of property as it ages and become subject
to wear and tear and obsolescence
Replacement Cost - ✔✔Defined as the cost to replace damaged property with like
kind and quality at today's price, without any deduction for depreciation. This method
of loss valuation is contrary to the basic concept of Indemnity because following a
lawsuit May provide the insured with a settlement in excess of the properties actual
cash value
Functional Replacement cost - ✔✔This loss valuation is the cost to replace the
damaged property with less expensive and more modern construction or equipment.
Underwriter - ✔✔Responsible for evaluating applications submitted to the insurer
and determining whether a policy should be issued, and if so, the terms, conditions and
rates for that policy
Class rating - ✔✔The practice of computing a price per unit of insurance that applies
to all applicants possessing a given set of characteristics such as type of dwelling,
specific City or drivers of a given gender and age
Complete Answers| Verified 100% Correct|
Newest 2025
Stated Amount - ✔✔The 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 - ✔✔Property that is moveable
Real Property - ✔✔Property that is non-moveable
Components - ✔✔Factors that determine rates, including loss reserves, loss adjusting
expenses, operating expenses and profits.
Comparative Negligence - ✔✔Many states, by statute, require that damage be
apportioned based upon the degree of negligence of each party in an accident.
Assignment - ✔✔The 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.
Additional Coverage - ✔✔Provides an additional amount of coverage for specific loss
expense, at no additional premium.
,Surplus Lines - ✔✔Insurance that is not available in the regular market place from
admitted insurers. Usually involves insurance of high risk individuals.
Defamation - ✔✔Statements that are false as to the financial condition of any insurer
Per occurrence (accident) limit - ✔✔The limit s expressed in an auto policy is the limit
per accident. After payment of a claim, the limits are restored to the original amount for
the next accident.
Proximate cause - ✔✔Is an act or event that is the natural and reasonablely
forseeable cause of damage or an event that occurs and damages property or causes
bodily harm.
When an applicant remit premium money to the insurer - ✔✔When must a binder be
given
Homeowner coverage - ✔✔Unscheduled personal property damage, bodily injury to
others, personal liabilities
Statute of limitations - ✔✔Establishes a time limits in which recovery can be
daughter for certain kinds of injuries or damages.
Washington property and casualty insurance guaranty association - ✔✔
Direct loss - ✔✔Physical damage to buildings and/or personal property.
, Blanket insurance - ✔✔Single property insurance policy that provides coverage for
multiple classes of property at one location, or for one or more classes of property at
multiple locations
Specific insurance - ✔✔A property insurance policy that covers a specific kind or unit
of property for a specific amount of insurance
Loss Valuation - ✔✔A factor in determining the premium charged in the amount of
insurance required
Actual cash value - ✔✔Method of valuation reinforces the principle of Indemnity
because it recognizes the reduction of value of property as it ages and become subject
to wear and tear and obsolescence
Replacement Cost - ✔✔Defined as the cost to replace damaged property with like
kind and quality at today's price, without any deduction for depreciation. This method
of loss valuation is contrary to the basic concept of Indemnity because following a
lawsuit May provide the insured with a settlement in excess of the properties actual
cash value
Functional Replacement cost - ✔✔This loss valuation is the cost to replace the
damaged property with less expensive and more modern construction or equipment.
Underwriter - ✔✔Responsible for evaluating applications submitted to the insurer
and determining whether a policy should be issued, and if so, the terms, conditions and
rates for that policy
Class rating - ✔✔The practice of computing a price per unit of insurance that applies
to all applicants possessing a given set of characteristics such as type of dwelling,
specific City or drivers of a given gender and age
