1 Exampromax - Stuvia US
Washington Life/Health Insurance Exam
Questions and Answers 100% Correct Answers
Already Graded A+
Q: policy owner
Ans: usually, but not always the person covered by the policy
Q: beneficiary
Ans: the person who is paid when a claim
is submitted
Exampromax - Stuvia US
Q: agent/producer
Ans: acts as a legal representative
of the insurance company
Q: broker
Ans: representative of the Insured, not the insurance company
Q: risk
Ans: The chance or uncertainty of loss
Q: Pure risk
Ans: the chance of experiencing a loss (without the possibility of gain). Only
downside, no upside.
Q: Speculative risk
Ans: s the chance of loss one accepts in the hope of realizing a gain
Q: Risk avoidance
, 2 Exampromax - Stuvia US
Ans: staying away from risky activities altogether
Q: Risk reduction
Ans: reduce the chance of something bad happening
Q: Risk shifting
Ans: Get someone else to accept the risk
Q: Buying insurance
Ans: transfer a portion of your risk to the Insurer
Q: Risk Retention
Exampromax - Stuvia US
Ans: the individual or business that opts not to buy insurance retains the entire
risk
Q: 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)
Q: Subrogation
Ans: the transfer to the Insurer of the Insured's rights to recover damages from a
responsible third party
Q: Peril
Ans: the cause of loss
Q: Law of Large numbers
Ans: the mathematical concept that makes it easier to predict losses if we have a
large number of Insureds
Q: Insurable losses are...
, 3 Exampromax - Stuvia US
Ans: Economic, Predictable, Accidental, Measurable, Non-Catastrophic
Q: non-participating companies
Ans: Stock companies that exist for the sole purpose of generating profits
for their stockholders
Q: participating companies
Ans: A company owned by its policy holders where the profits are distributed
among policy holders
Q: Social Security act
Ans: a guarantee that government
would never again allow workers (and their families) to become
destitute
Exampromax - Stuvia US
Q: OASDI (Social Security)
Ans: Old Age, Survivors, and Disability Insurance...Federal Government law
Q: FICA
Ans: Federal Insurance Contributions Act
or FICA, payroll taxes levied on employees, employers, and the self-employed.
Q: Not covered by social security
Ans: payroll taxes levied on employees, employers,
and the self-employed.
Q: FICA Fully Insured
Ans: (Worked for 10 years) payroll taxes levied on employees, employers,
and the self-employed.
Retirement Benefits;
Disability Income Benefits; and
Survivor Benefits.
Q: Currently Insured
, 4 Exampromax - Stuvia US
Ans: Worked less than ten years. Only eligeable for Survivor Benefits
Q: Average Indexed Monthly
Earnings
Ans: Averages earnings over time period. Either way, the more a worker
has paid into Social Security, the more the worker (or dependents)
will get out of it. (What you get at age 65)
Q: Primary Insurance Amount (PIA).
Ans: Full retirement benefit someone is entitled to at age 65 (some cases, 66-67)
Q: elimination period (Disability)
Ans: the person must be
Exampromax - Stuvia US
disabled for 5 months before starting to receive Disability
Benefits
Q: underwriting
Ans: the selection and classification of risks.
Q: actuary
Ans: A person who tracks the lifespan and chance of illness or accident based on
specific factors
Q: Mortality table
Ans: predict the age at which
people in a given group are likely to die (Used by life insurers)
Q: Morbidity table
Ans: predict how often
people in a given group are likely to get sick or have an
accident. (Used by health insurers)
Q: field underwriters
Ans: Insurance agents
Washington Life/Health Insurance Exam
Questions and Answers 100% Correct Answers
Already Graded A+
Q: policy owner
Ans: usually, but not always the person covered by the policy
Q: beneficiary
Ans: the person who is paid when a claim
is submitted
Exampromax - Stuvia US
Q: agent/producer
Ans: acts as a legal representative
of the insurance company
Q: broker
Ans: representative of the Insured, not the insurance company
Q: risk
Ans: The chance or uncertainty of loss
Q: Pure risk
Ans: the chance of experiencing a loss (without the possibility of gain). Only
downside, no upside.
Q: Speculative risk
Ans: s the chance of loss one accepts in the hope of realizing a gain
Q: Risk avoidance
, 2 Exampromax - Stuvia US
Ans: staying away from risky activities altogether
Q: Risk reduction
Ans: reduce the chance of something bad happening
Q: Risk shifting
Ans: Get someone else to accept the risk
Q: Buying insurance
Ans: transfer a portion of your risk to the Insurer
Q: Risk Retention
Exampromax - Stuvia US
Ans: the individual or business that opts not to buy insurance retains the entire
risk
Q: 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)
Q: Subrogation
Ans: the transfer to the Insurer of the Insured's rights to recover damages from a
responsible third party
Q: Peril
Ans: the cause of loss
Q: Law of Large numbers
Ans: the mathematical concept that makes it easier to predict losses if we have a
large number of Insureds
Q: Insurable losses are...
, 3 Exampromax - Stuvia US
Ans: Economic, Predictable, Accidental, Measurable, Non-Catastrophic
Q: non-participating companies
Ans: Stock companies that exist for the sole purpose of generating profits
for their stockholders
Q: participating companies
Ans: A company owned by its policy holders where the profits are distributed
among policy holders
Q: Social Security act
Ans: a guarantee that government
would never again allow workers (and their families) to become
destitute
Exampromax - Stuvia US
Q: OASDI (Social Security)
Ans: Old Age, Survivors, and Disability Insurance...Federal Government law
Q: FICA
Ans: Federal Insurance Contributions Act
or FICA, payroll taxes levied on employees, employers, and the self-employed.
Q: Not covered by social security
Ans: payroll taxes levied on employees, employers,
and the self-employed.
Q: FICA Fully Insured
Ans: (Worked for 10 years) payroll taxes levied on employees, employers,
and the self-employed.
Retirement Benefits;
Disability Income Benefits; and
Survivor Benefits.
Q: Currently Insured
, 4 Exampromax - Stuvia US
Ans: Worked less than ten years. Only eligeable for Survivor Benefits
Q: Average Indexed Monthly
Earnings
Ans: Averages earnings over time period. Either way, the more a worker
has paid into Social Security, the more the worker (or dependents)
will get out of it. (What you get at age 65)
Q: Primary Insurance Amount (PIA).
Ans: Full retirement benefit someone is entitled to at age 65 (some cases, 66-67)
Q: elimination period (Disability)
Ans: the person must be
Exampromax - Stuvia US
disabled for 5 months before starting to receive Disability
Benefits
Q: underwriting
Ans: the selection and classification of risks.
Q: actuary
Ans: A person who tracks the lifespan and chance of illness or accident based on
specific factors
Q: Mortality table
Ans: predict the age at which
people in a given group are likely to die (Used by life insurers)
Q: Morbidity table
Ans: predict how often
people in a given group are likely to get sick or have an
accident. (Used by health insurers)
Q: field underwriters
Ans: Insurance agents
