Washington Life/Health Insurance Exam 2025 EXAM
QUESTIONS AND WELL DETAILED ANSWERS
||RECENTLY TESTING REAL EXAM
QUESTIONS||VERIFIED|| LATEST UPDATE 2025/26
policy owner -CORRECT ANSWER usually, but not always the person covered by the
policy
beneficiary -CORRECT ANSWER the person who is paid when a claim
is submitted
agent/producer -CORRECT ANSWER acts as a legal representative
of the insurance company
broker -CORRECT ANSWER representative of the Insured, not the insurance company
risk -CORRECT ANSWER The chance or uncertainty of loss
Pure risk -CORRECT ANSWER the chance of experiencing a loss (without the
possibility of gain). Only downside, no upside.
Speculative risk -CORRECT ANSWER s the chance of loss one accepts in the hope of
realizing a gain
,Risk avoidance -CORRECT ANSWER staying away from risky activities altogether
Risk reduction -CORRECT ANSWER reduce the chance of something bad happening
Risk shifting -CORRECT ANSWER Get someone else to accept the risk
Buying insurance -CORRECT ANSWER transfer a portion of your risk to the Insurer
Risk Retention -CORRECT ANSWER the individual or business that opts not to buy
insurance retains the entire risk
Indemnification -CORRECT 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 -CORRECT ANSWER the transfer to the Insurer of the Insured's rights to
recover damages from a responsible third party
Peril -CORRECT ANSWER the cause of loss
,Law of Large numbers -CORRECT ANSWER the mathematical concept that makes it
easier to predict losses if we have a large number of Insureds
Insurable losses are... -CORRECT ANSWER Economic, Predictable, Accidental,
Measurable, Non-Catastrophic
non-participating companies -CORRECT ANSWER Stock companies that exist for the
sole purpose of generating profits
for their stockholders
participating companies -CORRECT ANSWER A company owned by its policy holders
where the profits are distributed among policy holders
Social Security act -CORRECT ANSWER a guarantee that government
would never again allow workers (and their families) to become
destitute
OASDI (Social Security) -CORRECT ANSWER Old Age, Survivors, and Disability
Insurance...Federal Government law
FICA -CORRECT ANSWER Federal Insurance Contributions Act
or FICA, payroll taxes levied on employees, employers, and the self-employed.
, Not covered by social security -CORRECT ANSWER payroll taxes levied on
employees, employers,
and the self-employed.
FICA Fully Insured -CORRECT 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 -CORRECT ANSWER Worked less than ten years. Only eligeable for
Survivor Benefits
Average Indexed Monthly
Earnings -CORRECT ANSWER 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)
Primary Insurance Amount (PIA). -CORRECT ANSWER Full retirement benefit
someone is entitled to at age 65 (some cases, 66-67)
QUESTIONS AND WELL DETAILED ANSWERS
||RECENTLY TESTING REAL EXAM
QUESTIONS||VERIFIED|| LATEST UPDATE 2025/26
policy owner -CORRECT ANSWER usually, but not always the person covered by the
policy
beneficiary -CORRECT ANSWER the person who is paid when a claim
is submitted
agent/producer -CORRECT ANSWER acts as a legal representative
of the insurance company
broker -CORRECT ANSWER representative of the Insured, not the insurance company
risk -CORRECT ANSWER The chance or uncertainty of loss
Pure risk -CORRECT ANSWER the chance of experiencing a loss (without the
possibility of gain). Only downside, no upside.
Speculative risk -CORRECT ANSWER s the chance of loss one accepts in the hope of
realizing a gain
,Risk avoidance -CORRECT ANSWER staying away from risky activities altogether
Risk reduction -CORRECT ANSWER reduce the chance of something bad happening
Risk shifting -CORRECT ANSWER Get someone else to accept the risk
Buying insurance -CORRECT ANSWER transfer a portion of your risk to the Insurer
Risk Retention -CORRECT ANSWER the individual or business that opts not to buy
insurance retains the entire risk
Indemnification -CORRECT 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 -CORRECT ANSWER the transfer to the Insurer of the Insured's rights to
recover damages from a responsible third party
Peril -CORRECT ANSWER the cause of loss
,Law of Large numbers -CORRECT ANSWER the mathematical concept that makes it
easier to predict losses if we have a large number of Insureds
Insurable losses are... -CORRECT ANSWER Economic, Predictable, Accidental,
Measurable, Non-Catastrophic
non-participating companies -CORRECT ANSWER Stock companies that exist for the
sole purpose of generating profits
for their stockholders
participating companies -CORRECT ANSWER A company owned by its policy holders
where the profits are distributed among policy holders
Social Security act -CORRECT ANSWER a guarantee that government
would never again allow workers (and their families) to become
destitute
OASDI (Social Security) -CORRECT ANSWER Old Age, Survivors, and Disability
Insurance...Federal Government law
FICA -CORRECT ANSWER Federal Insurance Contributions Act
or FICA, payroll taxes levied on employees, employers, and the self-employed.
, Not covered by social security -CORRECT ANSWER payroll taxes levied on
employees, employers,
and the self-employed.
FICA Fully Insured -CORRECT 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 -CORRECT ANSWER Worked less than ten years. Only eligeable for
Survivor Benefits
Average Indexed Monthly
Earnings -CORRECT ANSWER 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)
Primary Insurance Amount (PIA). -CORRECT ANSWER Full retirement benefit
someone is entitled to at age 65 (some cases, 66-67)
