2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Wisconsin Insurance Exam Questions and
Correct Answers | Latest Update
Risk
✓ -:- Not Knowing what will happen in the future and the possibility the
outcome will be negative
Defined As:
Chance of Loss
Possibility of Loss
Uncertainty of Loss
Types of Loss
✓ -:- 1. Financial
-Loss of house to loss of life
2. Non-Financial
-Loss of Friendship
Speculative Risk
1 | P a g e | G r a d e A + | 2 0 0 2 5
,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
✓ -:- I win or I lose
Pure Risk
✓ -:- I lose or I do not lose
Peril
✓ -:- The actual cause of a loss
Natural, Human, Economical, etc
Hazard
✓ -:- Situations or factors that may increase the possibility of a loss
Common Types:
Physical - Bad Breaks, ice on sidewalk
Moral - Dishonest Tendencies
Morale - Having a careless attitude because of coverage
Legal - Federal and/or state regulations must be followed
2 | P a g e | G r a d e A + | 2 0 0 2 5
, 2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
The process of risk management
✓ -:- 1. Identify the Objectives
2. Identify the Risks
3. Evaluate the Risks
How to deal with risk
✓ -:- Avoid (Don;t fly, hang glide, mountain climb etc)
Retain (Self insure)
Transfer (Social vehicle for insurance)
Share (incorporate or add a partner)
Reduce (install fire alarms, stop smoking, etc)
Rules of Risk Management
✓ -:- 1. Don't Risk more than you can afford to lose
2. Consider the odds
3. Don't risk a lot for a little
4. Priority for purchasing insurance
3 | P a g e | G r a d e A + | 2 0 0 2 5
Wisconsin Insurance Exam Questions and
Correct Answers | Latest Update
Risk
✓ -:- Not Knowing what will happen in the future and the possibility the
outcome will be negative
Defined As:
Chance of Loss
Possibility of Loss
Uncertainty of Loss
Types of Loss
✓ -:- 1. Financial
-Loss of house to loss of life
2. Non-Financial
-Loss of Friendship
Speculative Risk
1 | P a g e | G r a d e A + | 2 0 0 2 5
,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
✓ -:- I win or I lose
Pure Risk
✓ -:- I lose or I do not lose
Peril
✓ -:- The actual cause of a loss
Natural, Human, Economical, etc
Hazard
✓ -:- Situations or factors that may increase the possibility of a loss
Common Types:
Physical - Bad Breaks, ice on sidewalk
Moral - Dishonest Tendencies
Morale - Having a careless attitude because of coverage
Legal - Federal and/or state regulations must be followed
2 | P a g e | G r a d e A + | 2 0 0 2 5
, 2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
The process of risk management
✓ -:- 1. Identify the Objectives
2. Identify the Risks
3. Evaluate the Risks
How to deal with risk
✓ -:- Avoid (Don;t fly, hang glide, mountain climb etc)
Retain (Self insure)
Transfer (Social vehicle for insurance)
Share (incorporate or add a partner)
Reduce (install fire alarms, stop smoking, etc)
Rules of Risk Management
✓ -:- 1. Don't Risk more than you can afford to lose
2. Consider the odds
3. Don't risk a lot for a little
4. Priority for purchasing insurance
3 | P a g e | G r a d e A + | 2 0 0 2 5
