1 Exampromax - Stuvia US
Washington State Insurance Exam Questions
and Answers 100% Correct Answers Already
Graded A+
Q: Apparent
Ans: is the appearance or assumption of authority based on the actions, words,
or deeds of the principal or because of circumstances the principal created.
Q: Mutual Company
Ans: Owned by the policyowner and issue participating policies. Policy owners
Exampromax - Stuvia US
are entitled to dividends, which are a return of excess premiums and are therefore
non-taxable. Dividends are not guaranteed.
Q: Sharing
Ans: 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.
Q: Retention
Ans: 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.
Q: Express Authority
Ans: 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.
Q: Insurable Risk
Ans: In order to be characterized as a pure risk, the loss must be due to chance,
definite, measurable, and predictable, but not catastrophic.
, 2 Exampromax - Stuvia US
Q: Insurance Policy Conditions
Ans: 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.
Q: Loss Costs Rating
Ans: 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.
Q: Strict Liability
Exampromax - Stuvia US
Ans: Is commonly applied in product liability cases. The business is then liable
for defective products, regardless of fault or negligence.
Q: Insuring Agreement
Ans: The part of the policy structure that describes the insured perils and the
method of indemnification.
Q: Conditions
Ans: States the legal obligations and duties of the parties to the contract.
Q: Valued Policy
Ans: Provides for payment of the full policy amount in the event of a total loss
WITHOUT regard to actual value or depreciation.
Q: Contributory Negligence
Ans: 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.
Q: Agreed Value
, 3 Exampromax - Stuvia US
Ans: 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.
Q: Occurance
Ans: Includes those losses caused by continuous or repeated exposure to
conditions resulting in injury or damage to property that is neither intended nor
expected.
Q: Consequential loss
Ans: Also known as an indirect loss, is a second financial loss caused by a
covered direct loss.
Q: Nonconcurrency
Exampromax - Stuvia US
Ans: Refers to other insurance written on the same risk, but not on the same
coverage basis.
Q: Negligence
Ans: Four essential elements: Duty, breach, injury, and unbroken chain.
Q: Stated Amount
Ans: The value of the insured property is determined at the time the policy is
written. In the event of a loss, that amount is paid without regard to any
COINSURANCE provision. However, if the loss is less than total, the insurer has
salvage rights with the insured having first right of refusal of the salvage.
Q: Personal Property
Ans: Property that is moveable
Q: Real Property
Ans: Property that is non-moveable
Q: Components
Washington State Insurance Exam Questions
and Answers 100% Correct Answers Already
Graded A+
Q: Apparent
Ans: is the appearance or assumption of authority based on the actions, words,
or deeds of the principal or because of circumstances the principal created.
Q: Mutual Company
Ans: Owned by the policyowner and issue participating policies. Policy owners
Exampromax - Stuvia US
are entitled to dividends, which are a return of excess premiums and are therefore
non-taxable. Dividends are not guaranteed.
Q: Sharing
Ans: 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.
Q: Retention
Ans: 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.
Q: Express Authority
Ans: 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.
Q: Insurable Risk
Ans: In order to be characterized as a pure risk, the loss must be due to chance,
definite, measurable, and predictable, but not catastrophic.
, 2 Exampromax - Stuvia US
Q: Insurance Policy Conditions
Ans: 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.
Q: Loss Costs Rating
Ans: 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.
Q: Strict Liability
Exampromax - Stuvia US
Ans: Is commonly applied in product liability cases. The business is then liable
for defective products, regardless of fault or negligence.
Q: Insuring Agreement
Ans: The part of the policy structure that describes the insured perils and the
method of indemnification.
Q: Conditions
Ans: States the legal obligations and duties of the parties to the contract.
Q: Valued Policy
Ans: Provides for payment of the full policy amount in the event of a total loss
WITHOUT regard to actual value or depreciation.
Q: Contributory Negligence
Ans: 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.
Q: Agreed Value
, 3 Exampromax - Stuvia US
Ans: 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.
Q: Occurance
Ans: Includes those losses caused by continuous or repeated exposure to
conditions resulting in injury or damage to property that is neither intended nor
expected.
Q: Consequential loss
Ans: Also known as an indirect loss, is a second financial loss caused by a
covered direct loss.
Q: Nonconcurrency
Exampromax - Stuvia US
Ans: Refers to other insurance written on the same risk, but not on the same
coverage basis.
Q: Negligence
Ans: Four essential elements: Duty, breach, injury, and unbroken chain.
Q: Stated Amount
Ans: The value of the insured property is determined at the time the policy is
written. In the event of a loss, that amount is paid without regard to any
COINSURANCE provision. However, if the loss is less than total, the insurer has
salvage rights with the insured having first right of refusal of the salvage.
Q: Personal Property
Ans: Property that is moveable
Q: Real Property
Ans: Property that is non-moveable
Q: Components
