1
Washington Life/Health Insurance Exam
2025/2026 Exam Questions and Correct
Answers | New Update
policy owner - 🧠 ANSWER ✔✔usually, but not always the person covered by the
policy
beneficiary - 🧠 ANSWER ✔✔the person who is paid when a claim
is submitted
agent/producer - 🧠 ANSWER ✔✔acts as a legal representative
of the insurance company
broker - 🧠 ANSWER ✔✔representative of the Insured, not the insurance company
risk - 🧠 ANSWER ✔✔The chance or uncertainty of loss
Pure risk - 🧠 ANSWER ✔✔the chance of experiencing a loss (without the
possibility of gain). Only downside, no upside.
1
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
,2
Speculative risk - 🧠 ANSWER ✔✔s the chance of loss one accepts in the hope of
realizing a gain
Risk avoidance - 🧠 ANSWER ✔✔staying away from risky activities altogether
Risk reduction - 🧠 ANSWER ✔✔reduce the chance of something bad happening
Risk shifting - 🧠 ANSWER ✔✔Get someone else to accept the risk
Buying insurance - 🧠 ANSWER ✔✔transfer a portion of your risk to the Insurer
Risk Retention - 🧠 ANSWER ✔✔the individual or business that opts not to buy
insurance retains the entire risk
Indemnification - 🧠 ANSWER ✔✔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)
Subrogation - 🧠 ANSWER ✔✔the transfer to the Insurer of the Insured's rights to
recover damages from a responsible third party
Peril - 🧠 ANSWER ✔✔the cause of loss
2
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
,3
Law of Large numbers - 🧠 ANSWER ✔✔the mathematical concept that makes it
easier to predict losses if we have a large number of Insureds
Insurable losses are... - 🧠 ANSWER ✔✔Economic, Predictable, Accidental,
Measurable, Non-Catastrophic
non-participating companies - 🧠 ANSWER ✔✔Stock companies that exist for the
sole purpose of generating profits
for their stockholders
participating companies - 🧠 ANSWER ✔✔A company owned by its policy holders
where the profits are distributed among policy holders
Social Security act - 🧠 ANSWER ✔✔a guarantee that government
would never again allow workers (and their families) to become
destitute
OASDI (Social Security) - 🧠 ANSWER ✔✔Old Age, Survivors, and Disability
Insurance...Federal Government law
FICA - 🧠 ANSWER ✔✔Federal Insurance Contributions Act
or FICA, payroll taxes levied on employees, employers, and the self-employed.
3
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, 4
Not covered by social security - 🧠 ANSWER ✔✔payroll taxes levied on
employees, employers,
and the self-employed.
FICA Fully Insured - 🧠 ANSWER ✔✔(Worked for 10 years) payroll taxes levied
on employees, employers,
and the self-employed.
Retirement Benefits;
Disability Income Benefits; and
Survivor Benefits.
Currently Insured - 🧠 ANSWER ✔✔Worked less than ten years. Only eligeable for
Survivor Benefits
Average Indexed Monthly
Earnings - 🧠 ANSWER ✔✔Averages earnings over time period. Either way, the
more a worker
has paid into Social Security, the more the worker (or dependents)
4
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
Washington Life/Health Insurance Exam
2025/2026 Exam Questions and Correct
Answers | New Update
policy owner - 🧠 ANSWER ✔✔usually, but not always the person covered by the
policy
beneficiary - 🧠 ANSWER ✔✔the person who is paid when a claim
is submitted
agent/producer - 🧠 ANSWER ✔✔acts as a legal representative
of the insurance company
broker - 🧠 ANSWER ✔✔representative of the Insured, not the insurance company
risk - 🧠 ANSWER ✔✔The chance or uncertainty of loss
Pure risk - 🧠 ANSWER ✔✔the chance of experiencing a loss (without the
possibility of gain). Only downside, no upside.
1
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
,2
Speculative risk - 🧠 ANSWER ✔✔s the chance of loss one accepts in the hope of
realizing a gain
Risk avoidance - 🧠 ANSWER ✔✔staying away from risky activities altogether
Risk reduction - 🧠 ANSWER ✔✔reduce the chance of something bad happening
Risk shifting - 🧠 ANSWER ✔✔Get someone else to accept the risk
Buying insurance - 🧠 ANSWER ✔✔transfer a portion of your risk to the Insurer
Risk Retention - 🧠 ANSWER ✔✔the individual or business that opts not to buy
insurance retains the entire risk
Indemnification - 🧠 ANSWER ✔✔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)
Subrogation - 🧠 ANSWER ✔✔the transfer to the Insurer of the Insured's rights to
recover damages from a responsible third party
Peril - 🧠 ANSWER ✔✔the cause of loss
2
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
,3
Law of Large numbers - 🧠 ANSWER ✔✔the mathematical concept that makes it
easier to predict losses if we have a large number of Insureds
Insurable losses are... - 🧠 ANSWER ✔✔Economic, Predictable, Accidental,
Measurable, Non-Catastrophic
non-participating companies - 🧠 ANSWER ✔✔Stock companies that exist for the
sole purpose of generating profits
for their stockholders
participating companies - 🧠 ANSWER ✔✔A company owned by its policy holders
where the profits are distributed among policy holders
Social Security act - 🧠 ANSWER ✔✔a guarantee that government
would never again allow workers (and their families) to become
destitute
OASDI (Social Security) - 🧠 ANSWER ✔✔Old Age, Survivors, and Disability
Insurance...Federal Government law
FICA - 🧠 ANSWER ✔✔Federal Insurance Contributions Act
or FICA, payroll taxes levied on employees, employers, and the self-employed.
3
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, 4
Not covered by social security - 🧠 ANSWER ✔✔payroll taxes levied on
employees, employers,
and the self-employed.
FICA Fully Insured - 🧠 ANSWER ✔✔(Worked for 10 years) payroll taxes levied
on employees, employers,
and the self-employed.
Retirement Benefits;
Disability Income Benefits; and
Survivor Benefits.
Currently Insured - 🧠 ANSWER ✔✔Worked less than ten years. Only eligeable for
Survivor Benefits
Average Indexed Monthly
Earnings - 🧠 ANSWER ✔✔Averages earnings over time period. Either way, the
more a worker
has paid into Social Security, the more the worker (or dependents)
4
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
