WASHINGTON STATE INSURANCE
EXAM 2025\26
WASHINGTON STATE INSURANCE EXAM 2025\26 WITH
GUARANTEED ACCURATE ANSWERS
Apparent - ACCURATE ANSWERS✔✔ is the appearance or
assumption of authority based on the actions, words, or deeds of the
principal or because of circumstances the principal created.
Mutual Company - ACCURATE ANSWERS✔✔ 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.
Sharing - ACCURATE ANSWERS✔✔ 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.
Retention - ACCURATE ANSWERS✔✔ 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.
Express Authority - ACCURATE ANSWERS✔✔ 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.
Insurable Risk - ACCURATE ANSWERS✔✔ In order to be
characterized as a pure risk, the loss must be due to chance, definite,
measurable, and predictable, but not catastrophic.
Insurance Policy Conditions - ACCURATE ANSWERS✔✔ 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.
Loss Costs Rating - ACCURATE ANSWERS✔✔ 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 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.
Strict Liability - ACCURATE ANSWERS✔✔ Is commonly applied in
product liability cases. The business is then liable for defective products,
regardless of fault or negligence.
Insuring Agreement - ACCURATE ANSWERS✔✔ The part of the
policy structure that describes the insured perils and the method of
indemnification.
Conditions - ACCURATE ANSWERS✔✔ States the legal obligations
and duties of the parties to the contract.
Valued Policy - ACCURATE ANSWERS✔✔ Provides for payment of
the full policy amount in the event of a total loss WITHOUT regard to
actual value or depreciation.
Contributory Negligence - ACCURATE ANSWERS✔✔ 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.
Agreed Value - ACCURATE ANSWERS✔✔ A property policy with
provisions agreed upon by the insurer and insured as to the amounts of
EXAM 2025\26
WASHINGTON STATE INSURANCE EXAM 2025\26 WITH
GUARANTEED ACCURATE ANSWERS
Apparent - ACCURATE ANSWERS✔✔ is the appearance or
assumption of authority based on the actions, words, or deeds of the
principal or because of circumstances the principal created.
Mutual Company - ACCURATE ANSWERS✔✔ 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.
Sharing - ACCURATE ANSWERS✔✔ 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.
Retention - ACCURATE ANSWERS✔✔ 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.
Express Authority - ACCURATE ANSWERS✔✔ 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.
Insurable Risk - ACCURATE ANSWERS✔✔ In order to be
characterized as a pure risk, the loss must be due to chance, definite,
measurable, and predictable, but not catastrophic.
Insurance Policy Conditions - ACCURATE ANSWERS✔✔ 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.
Loss Costs Rating - ACCURATE ANSWERS✔✔ 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 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.
Strict Liability - ACCURATE ANSWERS✔✔ Is commonly applied in
product liability cases. The business is then liable for defective products,
regardless of fault or negligence.
Insuring Agreement - ACCURATE ANSWERS✔✔ The part of the
policy structure that describes the insured perils and the method of
indemnification.
Conditions - ACCURATE ANSWERS✔✔ States the legal obligations
and duties of the parties to the contract.
Valued Policy - ACCURATE ANSWERS✔✔ Provides for payment of
the full policy amount in the event of a total loss WITHOUT regard to
actual value or depreciation.
Contributory Negligence - ACCURATE ANSWERS✔✔ 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.
Agreed Value - ACCURATE ANSWERS✔✔ A property policy with
provisions agreed upon by the insurer and insured as to the amounts of
