Massachusetts Life and Health
Insurance Exam Questions and
Answers Already Graded A+
Transfer of Risk - correct answer ✔✔Insurance
Uncertainty/ Possibility of Loss - correct answer ✔✔Risk
Risks for which the insurance company would be liable - correct answer ✔✔Exposure
Cause of Loss - correct answer ✔✔Peril
Something that causes an increase in the chance of loss - correct answer ✔✔Hazard
Hazard that can be seen - correct answer ✔✔Physical Hazard
A belief that intentionally causing a loss is acceptable - correct answer ✔✔Moral Hazard
Carelessness - correct answer ✔✔Morale Hazard
Method of handling risk - correct answer ✔✔STARR
Sharing - correct answer ✔✔S- Method of handling risks
,Transfer - correct answer ✔✔T- Method of handling risk
Avoidance - correct answer ✔✔A- Method of handling risk
Retention - correct answer ✔✔R- Method of handling risk
Reduction - correct answer ✔✔R- Method of handling risk
An agreement between the insured and the insurer - correct answer ✔✔Contract Policy
The larger the group, the more accurate losses can be predicted - correct answer ✔✔Law of
Large Numbers
Can be insured with the following characteristics - correct answer ✔✔CANHAM Risks
Calculable - correct answer ✔✔C- CANHAM Risks
Affordable - correct answer ✔✔A- CANHAM Risks
Non- Catastrophic - correct answer ✔✔N- CANHAM Risks
Homogeneous - correct answer ✔✔H- CANHAM Risks
Accidental - correct answer ✔✔A- CANHAM Risks
Measurable - correct answer ✔✔M- CANHAM Risks
,risks that have a greater than average chance of loss - correct answer ✔✔Adverse Selection
An insurance company sells some of its risk to other insurance companies. - correct answer
✔✔Reinsurance-
the reinsurer evaluates each risk before allowing the transfer - correct answer ✔✔Facultative
Reinsurance
the reinsurer accepts the transfer according to an agreement called a treaty - correct answer
✔✔Treaty Reinsurance
An insurer that is owned by its stockholders and formed as a corporation for the purpose of
earning a profit for the stockholders.- Issues Non Par Policies - correct answer ✔✔Stock Insurer
An insurer that is owned by its policyholders and formed as a corporation for the purpose of
providing insurance to them.- Non Taxable dividends & Participating Polcies - correct answer
✔✔Mutual Insurer
provides insurance and other benefits
must be a member of the society to get the benefits - correct answer ✔✔Fraternal Insurer
unincorporated groups of people that provide insurance for one another through individual
indemnity agreements - correct answer ✔✔Reciprocal Insurers
Organizations that provide support facilities for underwriters or groups of individuals that
accept insurance risk. - correct answer ✔✔Llyod's Associations
, A liability insurance company owned by its members, which are exposed to similar liability risks
by virtue of being in the same business or industry. - correct answer ✔✔Risk Retention Group
Groups of people with similar insurance needs who form an organization to buy insurance as a
group. - correct answer ✔✔Risk Purchasing Groups
a business that pays its own claims - correct answer ✔✔Self-insurance
insurance from the state or federal government - correct answer ✔✔Residual Market
Domestic, Foreign, and Alien - correct answer ✔✔Insurance Company Locations
state license for an insurance company - correct answer ✔✔Certificate of Authority
state requires the insurance company to have a certificate of authority - correct answer
✔✔Admitted or Authorized
unauthorized-insurance company not required to have a Certificate of Authority from the state -
correct answer ✔✔Non-admitted
any type of insurance for which there is no available market within the state, and the coverage
must be placed with a non admitted insurer - correct answer ✔✔Surplus Lines
- Independent
- Exclusive or captive
- General agents or managing general agents
- direct writing companies - correct answer ✔✔Methods of Marketing
Insurance Exam Questions and
Answers Already Graded A+
Transfer of Risk - correct answer ✔✔Insurance
Uncertainty/ Possibility of Loss - correct answer ✔✔Risk
Risks for which the insurance company would be liable - correct answer ✔✔Exposure
Cause of Loss - correct answer ✔✔Peril
Something that causes an increase in the chance of loss - correct answer ✔✔Hazard
Hazard that can be seen - correct answer ✔✔Physical Hazard
A belief that intentionally causing a loss is acceptable - correct answer ✔✔Moral Hazard
Carelessness - correct answer ✔✔Morale Hazard
Method of handling risk - correct answer ✔✔STARR
Sharing - correct answer ✔✔S- Method of handling risks
,Transfer - correct answer ✔✔T- Method of handling risk
Avoidance - correct answer ✔✔A- Method of handling risk
Retention - correct answer ✔✔R- Method of handling risk
Reduction - correct answer ✔✔R- Method of handling risk
An agreement between the insured and the insurer - correct answer ✔✔Contract Policy
The larger the group, the more accurate losses can be predicted - correct answer ✔✔Law of
Large Numbers
Can be insured with the following characteristics - correct answer ✔✔CANHAM Risks
Calculable - correct answer ✔✔C- CANHAM Risks
Affordable - correct answer ✔✔A- CANHAM Risks
Non- Catastrophic - correct answer ✔✔N- CANHAM Risks
Homogeneous - correct answer ✔✔H- CANHAM Risks
Accidental - correct answer ✔✔A- CANHAM Risks
Measurable - correct answer ✔✔M- CANHAM Risks
,risks that have a greater than average chance of loss - correct answer ✔✔Adverse Selection
An insurance company sells some of its risk to other insurance companies. - correct answer
✔✔Reinsurance-
the reinsurer evaluates each risk before allowing the transfer - correct answer ✔✔Facultative
Reinsurance
the reinsurer accepts the transfer according to an agreement called a treaty - correct answer
✔✔Treaty Reinsurance
An insurer that is owned by its stockholders and formed as a corporation for the purpose of
earning a profit for the stockholders.- Issues Non Par Policies - correct answer ✔✔Stock Insurer
An insurer that is owned by its policyholders and formed as a corporation for the purpose of
providing insurance to them.- Non Taxable dividends & Participating Polcies - correct answer
✔✔Mutual Insurer
provides insurance and other benefits
must be a member of the society to get the benefits - correct answer ✔✔Fraternal Insurer
unincorporated groups of people that provide insurance for one another through individual
indemnity agreements - correct answer ✔✔Reciprocal Insurers
Organizations that provide support facilities for underwriters or groups of individuals that
accept insurance risk. - correct answer ✔✔Llyod's Associations
, A liability insurance company owned by its members, which are exposed to similar liability risks
by virtue of being in the same business or industry. - correct answer ✔✔Risk Retention Group
Groups of people with similar insurance needs who form an organization to buy insurance as a
group. - correct answer ✔✔Risk Purchasing Groups
a business that pays its own claims - correct answer ✔✔Self-insurance
insurance from the state or federal government - correct answer ✔✔Residual Market
Domestic, Foreign, and Alien - correct answer ✔✔Insurance Company Locations
state license for an insurance company - correct answer ✔✔Certificate of Authority
state requires the insurance company to have a certificate of authority - correct answer
✔✔Admitted or Authorized
unauthorized-insurance company not required to have a Certificate of Authority from the state -
correct answer ✔✔Non-admitted
any type of insurance for which there is no available market within the state, and the coverage
must be placed with a non admitted insurer - correct answer ✔✔Surplus Lines
- Independent
- Exclusive or captive
- General agents or managing general agents
- direct writing companies - correct answer ✔✔Methods of Marketing
