MASSACHUSETTS LIFE AND HEALTH INSURANCE EXAM

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MASSACHUSETTS LIFE AND HEALTH
INSURANCE EXAM NEWLY
FORMATTED STUDY GUIDE
WITH ACTUAL 2025/26 EXAM TIPS




Insurance Transfer of Risk
Risk Uncertainty/ Possibility of Loss
Exposure Risks for which the insurance company
would be liable
Peril Cause of Loss
Hazard Something that causes an increase in the
chance of loss
Physical Hazard Hazard that can be seen
Moral Hazard A belief that intentionally causing a loss is
acceptable
Morale Hazard Carelessness
STARR Method of handling risk
S- Method of Sharing
handling risks
T- Method of Transfer
handling risk
A- Method of Avoidance

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handling risk
R- Method of Retention
handling risk
R- Method of Reduction
handling risk
Contract Policy An agreement between the insured and
the insurer
Law of Large The larger the group, the more accurate
Numbers losses can be predicted
CANHAM Risks Can be insured with the following
characteristics
C- CANHAM Calculable
Risks
A- CANHAM Affordable
Risks
N- CANHAM Non- Catastrophic
Risks
H- CANHAM Homogeneous
Risks
A- CANHAM Accidental
Risks
M- CANHAM Measurable
Risks