7/28/25, 7:03 PM Washington Life/Health Insurance Exam 2025 EXAM QUESTIONS |FREQUENTLY TESTED QUESTIONS |RECENTLY TESTING …
Washington Life/Health Insurance Exam 2025
EXAM QUESTIONS |FREQUENTLY TESTED
QUESTIONS |RECENTLY TESTING REAL EXAM
QUESTIONS|VERIFIED SOLUTIONS (100%
CORRECT)
Save
Terms in this set (303)
usually, but not always the person covered by the
policy owner
policy
the person who is paid when a claim
beneficiary
is submitted
acts as a legal representative
agent/producer
of the insurance company
representative of the Insured, not the insurance
broker
company
risk The chance or uncertainty of loss
the chance of experiencing a loss (without the
Pure risk
possibility of gain). Only downside, no upside.
s the chance of loss one accepts in the hope of
Speculative risk
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
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,7/28/25, 7:03 PM Washington Life/Health Insurance Exam 2025 EXAM QUESTIONS |FREQUENTLY TESTED QUESTIONS |RECENTLY TESTING …
Buying insurance transfer a portion of your risk to the Insurer
the individual or business that opts not to buy
Risk Retention
insurance retains the entire risk
an insurance concept that states that some portions
of the insurance industry prefer that we be made only
Indemnification 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)
the transfer to the Insurer of the Insured's rights to
Subrogation
recover damages from a responsible third party
Peril the cause of loss
the mathematical concept that makes it easier to
Law of Large numbers
predict losses if we have a large number of Insureds
Economic, Predictable, Accidental, Measurable, Non-
Insurable losses are...
Catastrophic
Stock companies that exist for the sole purpose of
non-participating
generating profits
companies
for their stockholders
A company owned by its policy holders where the
participating companies
profits are distributed among policy holders
a guarantee that government
would never again allow workers (and their families) to
Social Security act
become
destitute
Old Age, Survivors, and Disability Insurance...Federal
OASDI (Social Security)
Government law
Federal Insurance Contributions Act
FICA or FICA, payroll taxes levied on employees,
employers, and the self-employed.
Not covered by social payroll taxes levied on employees, employers,
security and the self-employed.
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,7/28/25, 7:03 PM Washington Life/Health Insurance Exam 2025 EXAM QUESTIONS |FREQUENTLY TESTED QUESTIONS |RECENTLY TESTING …
(Worked for 10 years) payroll taxes levied on
employees, employers,
and the self-employed.
FICA Fully Insured
Retirement Benefits;
Disability Income Benefits; and
Survivor Benefits.
Worked less than ten years. Only eligeable for
Currently Insured
Survivor Benefits
Averages earnings over time period. Either way, the
more a worker
Average Indexed Monthly
has paid into Social Security, the more the worker (or
Earnings
dependents)
will get out of it. (What you get at age 65)
Primary Insurance Amount Full retirement benefit someone is entitled to at age
(PIA). 65 (some cases, 66-67)
the person must be
elimination period disabled for 5 months before starting to receive
(Disability) Disability
Benefits
underwriting the selection and classification of risks.
A person who tracks the lifespan and chance of illness
actuary
or accident based on specific factors
predict the age at which
Mortality table people in a given group are likely to die (Used by life
insurers)
predict how often
people in a given group are likely to get sick or have
Morbidity table
an
accident. (Used by health insurers)
field underwriters Insurance agents
declined risks Applicants who are too risky are declined
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, 7/28/25, 7:03 PM Washington Life/Health Insurance Exam 2025 EXAM QUESTIONS |FREQUENTLY TESTED QUESTIONS |RECENTLY TESTING …
the tendency for high
risk people to be more likely to apply for insurance
Adverse selection
than low risk
people.
Premium = Risk + Expenses - Interest
Premium mode how frequently an Insured will pay the premium
requires the Insurer to pay out part of the death
benefit
Accelerated Death Benefit
(usually 50%) if the Insured has a diagnosis of a
Rider
particular illness
likely to cause death within 12 months
sell the policy to an investment company that will
continue to make the premium payments and collect
Viatical Settlements the death benefit when the Insured dies. The Insured
will sell only if an investment company will pay more
than the current cash surrender value.
Reduced Cost;
Group Policies share
Reduced Adverse Selection; and
these three characteristics
Fixed Benefits.
people who need
insurance the most are the ones most likely to buy it -
Adverse selection
and buy
more of it causing more loss claims
looks at the claims
history for this particular group.
Experience rating puts the burden for
experience rating high premiums (and the credit for low
ones) squarely on the shoulders of
the group, because of the particular
group's past claims history
combines claims history over a class of groups that
community rating are similar in nature and
may even be in a similar geographic area
https://quizlet.com/1062683264/washington-lifehealth-insurance-exam-2025-exam-questions-frequently-tested-questions-recently-testing-real-exam-… 4/36
Washington Life/Health Insurance Exam 2025
EXAM QUESTIONS |FREQUENTLY TESTED
QUESTIONS |RECENTLY TESTING REAL EXAM
QUESTIONS|VERIFIED SOLUTIONS (100%
CORRECT)
Save
Terms in this set (303)
usually, but not always the person covered by the
policy owner
policy
the person who is paid when a claim
beneficiary
is submitted
acts as a legal representative
agent/producer
of the insurance company
representative of the Insured, not the insurance
broker
company
risk The chance or uncertainty of loss
the chance of experiencing a loss (without the
Pure risk
possibility of gain). Only downside, no upside.
s the chance of loss one accepts in the hope of
Speculative risk
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
https://quizlet.com/1062683264/washington-lifehealth-insurance-exam-2025-exam-questions-frequently-tested-questions-recently-testing-real-exam-… 1/36
,7/28/25, 7:03 PM Washington Life/Health Insurance Exam 2025 EXAM QUESTIONS |FREQUENTLY TESTED QUESTIONS |RECENTLY TESTING …
Buying insurance transfer a portion of your risk to the Insurer
the individual or business that opts not to buy
Risk Retention
insurance retains the entire risk
an insurance concept that states that some portions
of the insurance industry prefer that we be made only
Indemnification 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)
the transfer to the Insurer of the Insured's rights to
Subrogation
recover damages from a responsible third party
Peril the cause of loss
the mathematical concept that makes it easier to
Law of Large numbers
predict losses if we have a large number of Insureds
Economic, Predictable, Accidental, Measurable, Non-
Insurable losses are...
Catastrophic
Stock companies that exist for the sole purpose of
non-participating
generating profits
companies
for their stockholders
A company owned by its policy holders where the
participating companies
profits are distributed among policy holders
a guarantee that government
would never again allow workers (and their families) to
Social Security act
become
destitute
Old Age, Survivors, and Disability Insurance...Federal
OASDI (Social Security)
Government law
Federal Insurance Contributions Act
FICA or FICA, payroll taxes levied on employees,
employers, and the self-employed.
Not covered by social payroll taxes levied on employees, employers,
security and the self-employed.
https://quizlet.com/1062683264/washington-lifehealth-insurance-exam-2025-exam-questions-frequently-tested-questions-recently-testing-real-exam-… 2/36
,7/28/25, 7:03 PM Washington Life/Health Insurance Exam 2025 EXAM QUESTIONS |FREQUENTLY TESTED QUESTIONS |RECENTLY TESTING …
(Worked for 10 years) payroll taxes levied on
employees, employers,
and the self-employed.
FICA Fully Insured
Retirement Benefits;
Disability Income Benefits; and
Survivor Benefits.
Worked less than ten years. Only eligeable for
Currently Insured
Survivor Benefits
Averages earnings over time period. Either way, the
more a worker
Average Indexed Monthly
has paid into Social Security, the more the worker (or
Earnings
dependents)
will get out of it. (What you get at age 65)
Primary Insurance Amount Full retirement benefit someone is entitled to at age
(PIA). 65 (some cases, 66-67)
the person must be
elimination period disabled for 5 months before starting to receive
(Disability) Disability
Benefits
underwriting the selection and classification of risks.
A person who tracks the lifespan and chance of illness
actuary
or accident based on specific factors
predict the age at which
Mortality table people in a given group are likely to die (Used by life
insurers)
predict how often
people in a given group are likely to get sick or have
Morbidity table
an
accident. (Used by health insurers)
field underwriters Insurance agents
declined risks Applicants who are too risky are declined
https://quizlet.com/1062683264/washington-lifehealth-insurance-exam-2025-exam-questions-frequently-tested-questions-recently-testing-real-exam-… 3/36
, 7/28/25, 7:03 PM Washington Life/Health Insurance Exam 2025 EXAM QUESTIONS |FREQUENTLY TESTED QUESTIONS |RECENTLY TESTING …
the tendency for high
risk people to be more likely to apply for insurance
Adverse selection
than low risk
people.
Premium = Risk + Expenses - Interest
Premium mode how frequently an Insured will pay the premium
requires the Insurer to pay out part of the death
benefit
Accelerated Death Benefit
(usually 50%) if the Insured has a diagnosis of a
Rider
particular illness
likely to cause death within 12 months
sell the policy to an investment company that will
continue to make the premium payments and collect
Viatical Settlements the death benefit when the Insured dies. The Insured
will sell only if an investment company will pay more
than the current cash surrender value.
Reduced Cost;
Group Policies share
Reduced Adverse Selection; and
these three characteristics
Fixed Benefits.
people who need
insurance the most are the ones most likely to buy it -
Adverse selection
and buy
more of it causing more loss claims
looks at the claims
history for this particular group.
Experience rating puts the burden for
experience rating high premiums (and the credit for low
ones) squarely on the shoulders of
the group, because of the particular
group's past claims history
combines claims history over a class of groups that
community rating are similar in nature and
may even be in a similar geographic area
https://quizlet.com/1062683264/washington-lifehealth-insurance-exam-2025-exam-questions-frequently-tested-questions-recently-testing-real-exam-… 4/36
