Wisconsin Accident and Health Insurance
Exam 2023/ 230 Questions and Answers with
complete solution/ Graded A+
Dividends from a stock company are normally sent to:
Beneficiaries
Shareholders
Policy holders
Insureds - -Shareholders
-Which of the following financial products creates an instant estate, no matter when the
date of death?
Mutual funds
Life insurance
Certificate of deposit
Deferred annuity - -Life insurance
-Which of the following outlines the authority given to the producer on behalf of the
insurer?
Rebating arrangement
Commingling contract
Controlled business clause
Producer contract - -Producer contract
-Dividends from a mutual insurance company are paid to whom?
Policyholders
Beneficiaries
Preferred stockholders
Stockholders - -Policyholders
,-A stock insurance company is owned by its
Officers
Board directors
Policyowners
Shareholders - -Policyowners
-A reciprocal insurer typically has an administrator who manages the premiums
collected from the group's members. This administrator is called a(n)
Reciprocal commissioner
Attorney general
Attorney-in-fact
Reciprocal - -Attorney-in-fact
-which reinsurance contract between two insurers involves an automatic sharing of the
risks assumed?
Arbitrage reinsurance
Facultative reinsurance
Excess reinsurance
Treaty reinsurance - -Treaty reinsurance
-A group-owned insurance company that is formed to assume and spread the liability
risks of its members is known as a
Risk retention group
Treaty insurer
Risk assumption group
Captive insurer - -Risk retention group
-Which group is the Do not Registry designed to protect against?
Telemarketers
Charities
Political organizations
Relatives - -Telemarketers
,-who regulates an insurer's claim settlement practices?
National Association of Claim Adjusters
State attorney general
National Association of insurance Commissioners
State insurance departments - -State insurance departments
-Which of the following is Not an example of risk retention?
Becoming aware of a risk and taking no action
Self-insuring a given risk
Deciding a business deal is risky but going through with it anyways
Not doing a business deal after deciding it would be too risky - -Not doing a business
deal after deciding it would be too risky
-Which of the following describes the act of insuring a risk against possible loss?
Risk avoidance
Risk transfer
Hazard reduction
Loss management - -Risk transfer
-ABC Company is attempting to minimize the severity of potential losses within its
company. The company is engaged in risk
Transference
Retention
Reduction
Avoidance - -Reduction
-Which of these statements regarding insurance is false?
One way insurers deal with catastrophic loss is through reinsurance
As the number of insured units increases, the number of losses decreases
Speculative risk cannot be insured
, Pure risk can be insured - -As the number of insured units increases, the number of
losses decreases
-Purchasing insurance is an example of risk
Transference
Avoidance
Retention
Sharing - -Transference
-A business becoming incorporated is an example of risk
Reduction
Severance
Retention
Transfer - -Transfer
-How can an insurance company minimize exposure to loss?
Risk concealing
Reinsuring risks
Reissuance
Risk assumption - -Reinsuring risks
-An insurable risk requires
That the chance for both a loss or gain exists
The loss must be catastrophic
That the chance of loss be calculated
that the loss must be incalculable - -That the chance of loss be calculated
-which of the following can be defined as "the potential for loss"?
Hazard
Risk
Transference
Peril - -Risk
Exam 2023/ 230 Questions and Answers with
complete solution/ Graded A+
Dividends from a stock company are normally sent to:
Beneficiaries
Shareholders
Policy holders
Insureds - -Shareholders
-Which of the following financial products creates an instant estate, no matter when the
date of death?
Mutual funds
Life insurance
Certificate of deposit
Deferred annuity - -Life insurance
-Which of the following outlines the authority given to the producer on behalf of the
insurer?
Rebating arrangement
Commingling contract
Controlled business clause
Producer contract - -Producer contract
-Dividends from a mutual insurance company are paid to whom?
Policyholders
Beneficiaries
Preferred stockholders
Stockholders - -Policyholders
,-A stock insurance company is owned by its
Officers
Board directors
Policyowners
Shareholders - -Policyowners
-A reciprocal insurer typically has an administrator who manages the premiums
collected from the group's members. This administrator is called a(n)
Reciprocal commissioner
Attorney general
Attorney-in-fact
Reciprocal - -Attorney-in-fact
-which reinsurance contract between two insurers involves an automatic sharing of the
risks assumed?
Arbitrage reinsurance
Facultative reinsurance
Excess reinsurance
Treaty reinsurance - -Treaty reinsurance
-A group-owned insurance company that is formed to assume and spread the liability
risks of its members is known as a
Risk retention group
Treaty insurer
Risk assumption group
Captive insurer - -Risk retention group
-Which group is the Do not Registry designed to protect against?
Telemarketers
Charities
Political organizations
Relatives - -Telemarketers
,-who regulates an insurer's claim settlement practices?
National Association of Claim Adjusters
State attorney general
National Association of insurance Commissioners
State insurance departments - -State insurance departments
-Which of the following is Not an example of risk retention?
Becoming aware of a risk and taking no action
Self-insuring a given risk
Deciding a business deal is risky but going through with it anyways
Not doing a business deal after deciding it would be too risky - -Not doing a business
deal after deciding it would be too risky
-Which of the following describes the act of insuring a risk against possible loss?
Risk avoidance
Risk transfer
Hazard reduction
Loss management - -Risk transfer
-ABC Company is attempting to minimize the severity of potential losses within its
company. The company is engaged in risk
Transference
Retention
Reduction
Avoidance - -Reduction
-Which of these statements regarding insurance is false?
One way insurers deal with catastrophic loss is through reinsurance
As the number of insured units increases, the number of losses decreases
Speculative risk cannot be insured
, Pure risk can be insured - -As the number of insured units increases, the number of
losses decreases
-Purchasing insurance is an example of risk
Transference
Avoidance
Retention
Sharing - -Transference
-A business becoming incorporated is an example of risk
Reduction
Severance
Retention
Transfer - -Transfer
-How can an insurance company minimize exposure to loss?
Risk concealing
Reinsuring risks
Reissuance
Risk assumption - -Reinsuring risks
-An insurable risk requires
That the chance for both a loss or gain exists
The loss must be catastrophic
That the chance of loss be calculated
that the loss must be incalculable - -That the chance of loss be calculated
-which of the following can be defined as "the potential for loss"?
Hazard
Risk
Transference
Peril - -Risk
