Washington State Insurance Exam 2026-
2027\NEWEST VERSION WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS
\VERIFIED 100% ALREADY GRADED A+
Washington property and casualty
insurance guaranty association
Assignment The transfer of a legal right or interest in an
insurance policy. In property and casualty
insurance, assignments of policies are 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.
Additional Coverage Provides an additional amount of coverage for
specific loss expense, at no additional premium.
Surplus Lines Insurance that is not available in the regular
market place from admitted insurers. Usually
involves insurance of high risk individuals.
,Defamation Statements that are false as to the financial
condition of any insurer
Per occurrence (accident) limit The limit s expressed in an auto policy is the limit
per accident. After payment of a claim, the limits
are restored to the original amount for the next
accident.
Proximate cause Is an act or event that is the natural and
reasonablely forseeable cause of damage or an
event that occurs and damages property or
causes bodily harm.
When an applicant remit premium When must a binder be given
money to the insurer
Homeowner coverage Unscheduled personal property damage, bodily
injury to others, personal liabilities
Statute of limitations Establishes a time limits in which recovery can be
daughter for certain kinds of injuries or damages.
Direct loss Physical damage to buildings and/or personal
property.
Blanket insurance Single property insurance policy that provides
coverage for multiple classes of property at one
location, or for one or more classes of property
at multiple locations
, Specific insurance A property insurance policy that covers a specific
kind or unit of property for a specific amount of
insurance
Loss Valuation A factor in determining the premium charged in
the amount of insurance required
Actual cash value Method of valuation reinforces the principle of
Indemnity because it recognizes the reduction of
value of property as it ages and become subject
to wear and tear and obsolescence
Replacement Cost Defined as the cost to replace damaged
property with like kind and quality at today's
price, without any deduction for depreciation.
This method of loss valuation is contrary to the
basic concept of Indemnity because following a
lawsuit May provide the insured with a settlement
in excess of the properties actual cash value
Functional Replacement cost This loss valuation is the cost to replace the
damaged property with less expensive and more
modern construction or equipment.
Underwriter Responsible for evaluating applications
submitted to the insurer and determining whether
a policy should be issued, and if so, the terms,
conditions and rates for that policy
Class rating The practice of computing a price per unit of
insurance that applies to all applicants
possessing a given set of characteristics such as
type of dwelling, specific City or drivers of a
given gender and age
2027\NEWEST VERSION WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS
\VERIFIED 100% ALREADY GRADED A+
Washington property and casualty
insurance guaranty association
Assignment The transfer of a legal right or interest in an
insurance policy. In property and casualty
insurance, assignments of policies are 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.
Additional Coverage Provides an additional amount of coverage for
specific loss expense, at no additional premium.
Surplus Lines Insurance that is not available in the regular
market place from admitted insurers. Usually
involves insurance of high risk individuals.
,Defamation Statements that are false as to the financial
condition of any insurer
Per occurrence (accident) limit The limit s expressed in an auto policy is the limit
per accident. After payment of a claim, the limits
are restored to the original amount for the next
accident.
Proximate cause Is an act or event that is the natural and
reasonablely forseeable cause of damage or an
event that occurs and damages property or
causes bodily harm.
When an applicant remit premium When must a binder be given
money to the insurer
Homeowner coverage Unscheduled personal property damage, bodily
injury to others, personal liabilities
Statute of limitations Establishes a time limits in which recovery can be
daughter for certain kinds of injuries or damages.
Direct loss Physical damage to buildings and/or personal
property.
Blanket insurance Single property insurance policy that provides
coverage for multiple classes of property at one
location, or for one or more classes of property
at multiple locations
, Specific insurance A property insurance policy that covers a specific
kind or unit of property for a specific amount of
insurance
Loss Valuation A factor in determining the premium charged in
the amount of insurance required
Actual cash value Method of valuation reinforces the principle of
Indemnity because it recognizes the reduction of
value of property as it ages and become subject
to wear and tear and obsolescence
Replacement Cost Defined as the cost to replace damaged
property with like kind and quality at today's
price, without any deduction for depreciation.
This method of loss valuation is contrary to the
basic concept of Indemnity because following a
lawsuit May provide the insured with a settlement
in excess of the properties actual cash value
Functional Replacement cost This loss valuation is the cost to replace the
damaged property with less expensive and more
modern construction or equipment.
Underwriter Responsible for evaluating applications
submitted to the insurer and determining whether
a policy should be issued, and if so, the terms,
conditions and rates for that policy
Class rating The practice of computing a price per unit of
insurance that applies to all applicants
possessing a given set of characteristics such as
type of dwelling, specific City or drivers of a
given gender and age
