Washington State Insurance Exam
Questions and Answers (Latest Update
2024)
is the appearance or assumption of authority based on the
actions, words, or deeds of the principal or because of
circumstances the principal created. - Correct Answer ✅
Apparent
Owned by the policyowner and issue participating policies.
Policy owners are entitled to dividends, which are a return of
excess premiums and are therefore non-taxable. Dividends
are not guaranteed. - Correct Answer ✅ Mutual Company
A method of dealing with risk for a group of individual
persons or businesses with the same or similar exposure to
loss to share the losses that occur within that group. A
RECIPROCAL insurance exchange is a form of risk-sharing
arrangement. - Correct Answer ✅ Sharing
Is the planned assumption of risk by the insured through the
use of deductibles, co-payments, or self-insurance. It is also
known as self-insurance when the insured accepts the
responsibility for the loss before the insurance company pays.
- Correct Answer ✅ Retention
,Washington State Insurance Exam
Questions and Answers (Latest Update
2024)
Is the AUTHORITY a principal intends to grant to an agent by
means of the agent's contract. It is the authority that is
written in the contract. - Correct Answer ✅ Express
Authority
In order to be characterized as a pure risk, the loss must be
due to chance, definite, measurable, and predictable, but not
catastrophic. - Correct Answer ✅ Insurable Risk
Section of an insurance policy that indicates the general rules
or procedures that the insurer and insured agree to follow
under the terms of the policy. Examples: Inspection may be
made as needed/ Changes to the policy must be made by
insurer and be in writing/ Liberalization clause/ Return of
premiums, which dictates methods used. - Correct Answer
✅ Insurance Policy Conditions
Type of rating: Method developed by the insurance services
office Inc. (ISO) that provides an insurer with that portion of a
rate that does not include provisions of expenses or profit
,Washington State Insurance Exam
Questions and Answers (Latest Update
2024)
and are based on historical aggregate loss and loss
adjustment expenses projected through development to their
ultimate value and through trending to a future point in time.
- Correct Answer ✅ Loss Costs Rating
Is commonly applied in product liability cases. The business is
then liable for defective products, regardless of fault or
negligence. - Correct Answer ✅ Strict Liability
The part of the policy structure that describes the insured
perils and the method of indemnification. - Correct Answer
✅ Insuring Agreement
States the legal obligations and duties of the parties to the
contract. - Correct Answer ✅ Conditions
Provides for payment of the full policy amount in the event of
a total loss WITHOUT regard to actual value or depreciation. -
Correct Answer ✅ Valued Policy
, Washington State Insurance Exam
Questions and Answers (Latest Update
2024)
In states that have this, the defendant must have been 100%
at fault for an accident and the claimant free of fault if the
claimant is to be successful in collecting damages. - Correct
Answer ✅ Contributory Negligence
A property policy with provisions agreed upon by the insurer
and insured as to the amounts of insurance that represents a
fair valuation for the property at the time the insurance is
written. The amount is paid in a loss, regardless of the
insured property's appreciation or depreciation. - Correct
Answer ✅ Agreed Value
Includes those losses caused by continuous or repeated
exposure to conditions resulting in injury or damage to
property that is neither intended nor expected. - Correct
Answer ✅ Occurance
Also known as an indirect loss, is a second financial loss
caused by a covered direct loss. - Correct Answer ✅
Consequential loss
Questions and Answers (Latest Update
2024)
is the appearance or assumption of authority based on the
actions, words, or deeds of the principal or because of
circumstances the principal created. - Correct Answer ✅
Apparent
Owned by the policyowner and issue participating policies.
Policy owners are entitled to dividends, which are a return of
excess premiums and are therefore non-taxable. Dividends
are not guaranteed. - Correct Answer ✅ Mutual Company
A method of dealing with risk for a group of individual
persons or businesses with the same or similar exposure to
loss to share the losses that occur within that group. A
RECIPROCAL insurance exchange is a form of risk-sharing
arrangement. - Correct Answer ✅ Sharing
Is the planned assumption of risk by the insured through the
use of deductibles, co-payments, or self-insurance. It is also
known as self-insurance when the insured accepts the
responsibility for the loss before the insurance company pays.
- Correct Answer ✅ Retention
,Washington State Insurance Exam
Questions and Answers (Latest Update
2024)
Is the AUTHORITY a principal intends to grant to an agent by
means of the agent's contract. It is the authority that is
written in the contract. - Correct Answer ✅ Express
Authority
In order to be characterized as a pure risk, the loss must be
due to chance, definite, measurable, and predictable, but not
catastrophic. - Correct Answer ✅ Insurable Risk
Section of an insurance policy that indicates the general rules
or procedures that the insurer and insured agree to follow
under the terms of the policy. Examples: Inspection may be
made as needed/ Changes to the policy must be made by
insurer and be in writing/ Liberalization clause/ Return of
premiums, which dictates methods used. - Correct Answer
✅ Insurance Policy Conditions
Type of rating: Method developed by the insurance services
office Inc. (ISO) that provides an insurer with that portion of a
rate that does not include provisions of expenses or profit
,Washington State Insurance Exam
Questions and Answers (Latest Update
2024)
and are based on historical aggregate loss and loss
adjustment expenses projected through development to their
ultimate value and through trending to a future point in time.
- Correct Answer ✅ Loss Costs Rating
Is commonly applied in product liability cases. The business is
then liable for defective products, regardless of fault or
negligence. - Correct Answer ✅ Strict Liability
The part of the policy structure that describes the insured
perils and the method of indemnification. - Correct Answer
✅ Insuring Agreement
States the legal obligations and duties of the parties to the
contract. - Correct Answer ✅ Conditions
Provides for payment of the full policy amount in the event of
a total loss WITHOUT regard to actual value or depreciation. -
Correct Answer ✅ Valued Policy
, Washington State Insurance Exam
Questions and Answers (Latest Update
2024)
In states that have this, the defendant must have been 100%
at fault for an accident and the claimant free of fault if the
claimant is to be successful in collecting damages. - Correct
Answer ✅ Contributory Negligence
A property policy with provisions agreed upon by the insurer
and insured as to the amounts of insurance that represents a
fair valuation for the property at the time the insurance is
written. The amount is paid in a loss, regardless of the
insured property's appreciation or depreciation. - Correct
Answer ✅ Agreed Value
Includes those losses caused by continuous or repeated
exposure to conditions resulting in injury or damage to
property that is neither intended nor expected. - Correct
Answer ✅ Occurance
Also known as an indirect loss, is a second financial loss
caused by a covered direct loss. - Correct Answer ✅
Consequential loss
