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Washington Life/Health Insurance Exam
Questions and Correct Answers/ Latest
Update / Already Graded
policy owner
Ans: usually, but not always the person covered by the policy
beneficiary
Ans: the person who is paid when a claim
is submitted
agent/producer
Ans: acts as a legal representative
of the insurance company
broker
Ans: representative of the Insured, not the insurance company
risk
Ans: The chance or uncertainty of loss
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Pure risk
Ans: the chance of experiencing a loss (without the possibility
of gain). Only downside, no upside.
Speculative risk
Ans: s the chance of loss one accepts in the hope of realizing a
gain
Risk avoidance
Ans: staying away from risky activities altogether
Risk reduction
Ans: reduce the chance of something bad happening
Risk shifting
Ans: Get someone else to accept the risk
Buying insurance
Ans: transfer a portion of your risk to the Insurer
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Risk Retention
Ans: the individual or business that opts not to buy insurance
retains the entire risk
Indemnification
Ans: 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
Ans: the transfer to the Insurer of the Insured's rights to
recover damages from a responsible third party
Peril
Ans: the cause of loss
Law of Large numbers
Ans: the mathematical concept that makes it easier to predict
losses if we have a large number of Insureds
All rights reserved © 2025/ 2026 |
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Insurable losses are...
Ans: Economic, Predictable, Accidental, Measurable, Non-
Catastrophic
non-participating companies
Ans: Stock companies that exist for the sole purpose of
generating profits
for their stockholders
participating companies
Ans: A company owned by its policy holders where the profits
are distributed among policy holders
Social Security act
Ans: a guarantee that government
would never again allow workers (and their families) to become
destitute
OASDI (Social Security)
All rights reserved © 2025/ 2026 |
Washington Life/Health Insurance Exam
Questions and Correct Answers/ Latest
Update / Already Graded
policy owner
Ans: usually, but not always the person covered by the policy
beneficiary
Ans: the person who is paid when a claim
is submitted
agent/producer
Ans: acts as a legal representative
of the insurance company
broker
Ans: representative of the Insured, not the insurance company
risk
Ans: The chance or uncertainty of loss
All rights reserved © 2025/ 2026 |
, Page |2
Pure risk
Ans: the chance of experiencing a loss (without the possibility
of gain). Only downside, no upside.
Speculative risk
Ans: s the chance of loss one accepts in the hope of realizing a
gain
Risk avoidance
Ans: staying away from risky activities altogether
Risk reduction
Ans: reduce the chance of something bad happening
Risk shifting
Ans: Get someone else to accept the risk
Buying insurance
Ans: transfer a portion of your risk to the Insurer
All rights reserved © 2025/ 2026 |
, Page |3
Risk Retention
Ans: the individual or business that opts not to buy insurance
retains the entire risk
Indemnification
Ans: 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
Ans: the transfer to the Insurer of the Insured's rights to
recover damages from a responsible third party
Peril
Ans: the cause of loss
Law of Large numbers
Ans: the mathematical concept that makes it easier to predict
losses if we have a large number of Insureds
All rights reserved © 2025/ 2026 |
, Page |4
Insurable losses are...
Ans: Economic, Predictable, Accidental, Measurable, Non-
Catastrophic
non-participating companies
Ans: Stock companies that exist for the sole purpose of
generating profits
for their stockholders
participating companies
Ans: A company owned by its policy holders where the profits
are distributed among policy holders
Social Security act
Ans: a guarantee that government
would never again allow workers (and their families) to become
destitute
OASDI (Social Security)
All rights reserved © 2025/ 2026 |
