Washington State Insurance Exam Test Questions with
100% Verified Answers
Apparent - -is the appearance or
assumption of authority based on the actions,
words, or deeds of the principal or because of
circumstances the principal created. Insurance Policy Conditions - -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.
Mutual Company - -Owned by the Examples: Inspection may be made as needed/
policyowner and issue participating policies. Changes to the policy must be made by insurer
Policy owners are entitled to dividends, which are and be in writing/ Liberalization clause/ Return of
a return of excess premiums and are therefore premiums, which dictates methods used.
non-taxable. Dividends are not guaranteed.
Loss Costs Rating - -Type of rating:
Sharing - -A method of dealing with risk for Method developed by the insurance services
a group of individual persons or businesses with office Inc. (ISO) that provides an insurer with that
the same or similar exposure to loss to share the portion of a rate that does not include provisions
losses that occur within that group. A of expenses or profit and are based on historical
RECIPROCAL insurance exchange is a form of aggregate loss and loss adjustment expenses
risk-sharing arrangement. projected through development to their ultimate
value and through trending to a future point in
time.
Retention - -Is the planned assumption of
risk by the insured through the use of
deductibles, co-payments, or self-insurance. It is Strict Liability - -Is commonly applied in
also known as self-insurance when the insured product liability cases. The business is then liable
accepts the responsibility for the loss before the for defective products, regardless of fault or
insurance company pays. negligence.
Express Authority - -Is the AUTHORITY a Insuring Agreement - -The part of the
principal intends to grant to an agent by means policy structure that describes the insured perils
of the agent's contract. It is the authority that is and the method of indemnification.
written in the contract.
Conditions - -States the legal obligations
Insurable Risk - -In order to be and duties of the parties to the contract.
characterized as a pure risk, the loss must be
due to chance, definite, measurable, and
predictable, but not catastrophic.
, Washington Life/Health Insurance Exam Test Questions
with Verified Answers
Valued Policy - -Provides for payment of
the full policy amount in the event of a total loss
WITHOUT regard to actual value or depreciation.
Stated Amount - -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
Contributory Negligence - -In states that without regard to any COINSURANCE provision.
have this, the defendant must have been 100% However, if the loss is less than total, the insurer
at fault for an accident and the claimant free of has salvage rights with the insured having first
fault if the claimant is to be successful in right of refusal of the salvage.
collecting damages.
Personal Property - -Property that is
Agreed Value - -A property policy with moveable
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 Real Property - -Property that is non-
in a loss, regardless of the insured property's moveable
appreciation or depreciation.
Components - -Factors that determine
Occurance - -Includes those losses rates, including loss reserves, loss adjusting
caused by continuous or repeated exposure to expenses, operating expenses and profits.
conditions resulting in injury or damage to
property that is neither intended nor expected.
Comparative Negligence - -Many states, by
statute, require that damage be apportioned
Consequential loss - -Also known as an based upon the degree of negligence of each
indirect loss, is a second financial loss caused by party in an accident.
a covered direct loss.
Assignment - -The transfer of a legal right
Nonconcurrency - -Refers to other or interest in an insurance policy. In property and
insurance written on the same risk, but not on the casualty insurance, assignments of policies are
same coverage basis. usually valid only with the prior written consent of
the insurer. Example: transferring a policy to a
friend who will be taking over renters insurance
when you move out.
Negligence - -Four essential elements:
Duty, breach, injury, and unbroken chain.
100% Verified Answers
Apparent - -is the appearance or
assumption of authority based on the actions,
words, or deeds of the principal or because of
circumstances the principal created. Insurance Policy Conditions - -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.
Mutual Company - -Owned by the Examples: Inspection may be made as needed/
policyowner and issue participating policies. Changes to the policy must be made by insurer
Policy owners are entitled to dividends, which are and be in writing/ Liberalization clause/ Return of
a return of excess premiums and are therefore premiums, which dictates methods used.
non-taxable. Dividends are not guaranteed.
Loss Costs Rating - -Type of rating:
Sharing - -A method of dealing with risk for Method developed by the insurance services
a group of individual persons or businesses with office Inc. (ISO) that provides an insurer with that
the same or similar exposure to loss to share the portion of a rate that does not include provisions
losses that occur within that group. A of expenses or profit and are based on historical
RECIPROCAL insurance exchange is a form of aggregate loss and loss adjustment expenses
risk-sharing arrangement. projected through development to their ultimate
value and through trending to a future point in
time.
Retention - -Is the planned assumption of
risk by the insured through the use of
deductibles, co-payments, or self-insurance. It is Strict Liability - -Is commonly applied in
also known as self-insurance when the insured product liability cases. The business is then liable
accepts the responsibility for the loss before the for defective products, regardless of fault or
insurance company pays. negligence.
Express Authority - -Is the AUTHORITY a Insuring Agreement - -The part of the
principal intends to grant to an agent by means policy structure that describes the insured perils
of the agent's contract. It is the authority that is and the method of indemnification.
written in the contract.
Conditions - -States the legal obligations
Insurable Risk - -In order to be and duties of the parties to the contract.
characterized as a pure risk, the loss must be
due to chance, definite, measurable, and
predictable, but not catastrophic.
, Washington Life/Health Insurance Exam Test Questions
with Verified Answers
Valued Policy - -Provides for payment of
the full policy amount in the event of a total loss
WITHOUT regard to actual value or depreciation.
Stated Amount - -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
Contributory Negligence - -In states that without regard to any COINSURANCE provision.
have this, the defendant must have been 100% However, if the loss is less than total, the insurer
at fault for an accident and the claimant free of has salvage rights with the insured having first
fault if the claimant is to be successful in right of refusal of the salvage.
collecting damages.
Personal Property - -Property that is
Agreed Value - -A property policy with moveable
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 Real Property - -Property that is non-
in a loss, regardless of the insured property's moveable
appreciation or depreciation.
Components - -Factors that determine
Occurance - -Includes those losses rates, including loss reserves, loss adjusting
caused by continuous or repeated exposure to expenses, operating expenses and profits.
conditions resulting in injury or damage to
property that is neither intended nor expected.
Comparative Negligence - -Many states, by
statute, require that damage be apportioned
Consequential loss - -Also known as an based upon the degree of negligence of each
indirect loss, is a second financial loss caused by party in an accident.
a covered direct loss.
Assignment - -The transfer of a legal right
Nonconcurrency - -Refers to other or interest in an insurance policy. In property and
insurance written on the same risk, but not on the casualty insurance, assignments of policies are
same coverage basis. usually valid only with the prior written consent of
the insurer. Example: transferring a policy to a
friend who will be taking over renters insurance
when you move out.
Negligence - -Four essential elements:
Duty, breach, injury, and unbroken chain.
