WISCONSIN ACCIDENT AND HEALTH
INSURANCE EXAM 2025 QUESTIONS
AND ANSWERS
Dividends from a stock company are normally sent to:
Beneficiaries
Shareholders
Policy holders
Insureds - ANS Shareholders
Which of the following financial products creates an instant estate, no matter when the date of
death?
Mutual funds
Life insurance
Certificate of deposit
Deferred annuity - ANS Life insurance
Which of the following outlines the authority given to the producer on behalf of the insurer?
Rebating arrangement
Commingling contract
1
Controlled business clause
Page
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, Producer contract - ANS Producer contract
Dividends from a mutual insurance company are paid to whom?
Policyholders
Beneficiaries
Preferred stockholders
Stockholders - ANS Policyholders
A stock insurance company is owned by its
Officers
Board directors
Policyowners
Shareholders - ANS Policyowners
A reciprocal insurer typically has an administrator who manages the premiums collected from
the group's members. This administrator is called a(n)
Reciprocal commissioner
Attorney general
Attorney-in-fact
Reciprocal - ANS Attorney-in-fact
which reinsurance contract between two insurers involves an automatic sharing of the risks
assumed?
Arbitrage reinsurance
Facultative reinsurance
Excess reinsurance
2
Treaty reinsurance - ANS Treaty reinsurance
Page
@COPYRIGHT @THEBRIGHT 2025/2026
, A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a
Risk retention group
Treaty insurer
Risk assumption group
Captive insurer - ANS Risk retention group
Which group is the Do not Registry designed to protect against?
Telemarketers
Charities
Political organizations
Relatives - ANS Telemarketers
who regulates an insurer's claim settlement practices?
National Association of Claim Adjusters
State attorney general
National Association of insurance Commissioners
State insurance departments - ANS State insurance departments
Which of the following is Not an example of risk retention?
Becoming aware of a risk and taking no action
Self-insuring a given risk
Deciding a business deal is risky but going through with it anyways
Not doing a business deal after deciding it would be too risky - ANS Not doing a business deal
after deciding it would be too risky
3
Page
Which of the following describes the act of insuring a risk against possible loss?
@COPYRIGHT @THEBRIGHT 2025/2026
, Risk avoidance
Risk transfer
Hazard reduction
Loss management - ANS Risk transfer
ABC Company is attempting to minimize the severity of potential losses within its company. The
company is engaged in risk
Transference
Retention
Reduction
Avoidance - ANS Reduction
Which of these statements regarding insurance is false?
One way insurers deal with catastrophic loss is through reinsurance
As the number of insured units increases, the number of losses decreases
Speculative risk cannot be insured
Pure risk can be insured - ANS As the number of insured units increases, the number of
losses decreases
Purchasing insurance is an example of risk
Transference
Avoidance
Retention
Sharing - ANS Transference
A business becoming incorporated is an example of risk
Reduction
4
Page
Severance
@COPYRIGHT @THEBRIGHT 2025/2026
INSURANCE EXAM 2025 QUESTIONS
AND ANSWERS
Dividends from a stock company are normally sent to:
Beneficiaries
Shareholders
Policy holders
Insureds - ANS Shareholders
Which of the following financial products creates an instant estate, no matter when the date of
death?
Mutual funds
Life insurance
Certificate of deposit
Deferred annuity - ANS Life insurance
Which of the following outlines the authority given to the producer on behalf of the insurer?
Rebating arrangement
Commingling contract
1
Controlled business clause
Page
@COPYRIGHT @THEBRIGHT 2025/2026
, Producer contract - ANS Producer contract
Dividends from a mutual insurance company are paid to whom?
Policyholders
Beneficiaries
Preferred stockholders
Stockholders - ANS Policyholders
A stock insurance company is owned by its
Officers
Board directors
Policyowners
Shareholders - ANS Policyowners
A reciprocal insurer typically has an administrator who manages the premiums collected from
the group's members. This administrator is called a(n)
Reciprocal commissioner
Attorney general
Attorney-in-fact
Reciprocal - ANS Attorney-in-fact
which reinsurance contract between two insurers involves an automatic sharing of the risks
assumed?
Arbitrage reinsurance
Facultative reinsurance
Excess reinsurance
2
Treaty reinsurance - ANS Treaty reinsurance
Page
@COPYRIGHT @THEBRIGHT 2025/2026
, A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a
Risk retention group
Treaty insurer
Risk assumption group
Captive insurer - ANS Risk retention group
Which group is the Do not Registry designed to protect against?
Telemarketers
Charities
Political organizations
Relatives - ANS Telemarketers
who regulates an insurer's claim settlement practices?
National Association of Claim Adjusters
State attorney general
National Association of insurance Commissioners
State insurance departments - ANS State insurance departments
Which of the following is Not an example of risk retention?
Becoming aware of a risk and taking no action
Self-insuring a given risk
Deciding a business deal is risky but going through with it anyways
Not doing a business deal after deciding it would be too risky - ANS Not doing a business deal
after deciding it would be too risky
3
Page
Which of the following describes the act of insuring a risk against possible loss?
@COPYRIGHT @THEBRIGHT 2025/2026
, Risk avoidance
Risk transfer
Hazard reduction
Loss management - ANS Risk transfer
ABC Company is attempting to minimize the severity of potential losses within its company. The
company is engaged in risk
Transference
Retention
Reduction
Avoidance - ANS Reduction
Which of these statements regarding insurance is false?
One way insurers deal with catastrophic loss is through reinsurance
As the number of insured units increases, the number of losses decreases
Speculative risk cannot be insured
Pure risk can be insured - ANS As the number of insured units increases, the number of
losses decreases
Purchasing insurance is an example of risk
Transference
Avoidance
Retention
Sharing - ANS Transference
A business becoming incorporated is an example of risk
Reduction
4
Page
Severance
@COPYRIGHT @THEBRIGHT 2025/2026
