WISCONSIN ACCIDENT AND HEALTH INSURANCE EXAM
NEWEST EXAM QUESTIONS AND CORRECT DETAILED
ANSWERS A NEW UPDATED VERSION LATEST 2024-
2025(VERIFIED ANSWERS) GUARANTEED PASS A+
which one of these is Not considered to be an element of an insurable risk?
Speculative risk
Pure risk
Loss cannot be catastrophic
Loss must be due to chance - ANSWER-Speculative risk
An insurer has a contractual agreement which transfers a portion of its risk
exposure to another insurer. What type of contractual arrangement is this?
Coinsurance contract
Mutuality agreement
Reinsurance contract
Reciprocity arrangement - ANSWER-Reinsurance contract
A hold-harmless clause is an example of risk
Avoidance
,Retention
Transfer
Sharing - ANSWER-Transfer
The law of large numbers enables an insurer to
Predict losses
Avoid adverse selection
Classify rates
Assure company profiles - ANSWER-Predict losses
What happens when an initial offer is answered with a counteroffer?
An arbitrator decides on a compromise
The counteroffer is legally enforceable
Initial offer is void
Initial offer is automatically accepted - ANSWER-Initial offer is void
What qualifies as acceptance of an insurance contract offer?
A declined policy
An issued policy
The application an initial premium
The initial premium only - ANSWER-An issued policy
XYZ Insurance Company gives direct authority to its producers to sell insurance
through an agency contract, but nothing is stated regarding the collection of
premiums. Which authority grants the producer the right to collect premiums?
,Implied authority
Apparent authority
Express authority
Assumed authority - ANSWER-Implied authority
The power directly given to a producer in an agency contract are called
Express
Apparent
Implied
Assumed - ANSWER-Express
In what way are insurance policies said to be aleatory?
Only one party makes any kind of enforceable promise
Involves the potential for the unequal exchange of value
Contract is prepared by only one party
Vagueness in a contract's wording is resolved in favor of the policyowner -
ANSWER-Involves the potential for the unequal exchange of value
An insurance company can be liable for a producer's unauthorized acts
Only when a felony is involved
When the agency contract is unclear concerning the authority given
At anytime
Only if the agency contract is unilateral - ANSWER-When the agency contract is
unclear concerning the authority given
, An agreement is reached when an insurance contract is formed. Which of the
following is NOT considered to be an element of an agreement?
Meeting of the minds
Offer
Acceptance
Equity - ANSWER-Equity
which of these do NOT indicate the presence of insurable interest in a life
insurance contract?
Lifelong friendship
Marriage
Blood-related
Co-owning a business - ANSWER-Lifelong friendship
An insurance contract may be voided if a misrepresentation found on the
application is determined to be
Conditional
Aleatory
Material
Intentional - ANSWER-Material
A contract is considered void in all of the following situations EXCEPT
When one party is a minor
When consideration is unequal
NEWEST EXAM QUESTIONS AND CORRECT DETAILED
ANSWERS A NEW UPDATED VERSION LATEST 2024-
2025(VERIFIED ANSWERS) GUARANTEED PASS A+
which one of these is Not considered to be an element of an insurable risk?
Speculative risk
Pure risk
Loss cannot be catastrophic
Loss must be due to chance - ANSWER-Speculative risk
An insurer has a contractual agreement which transfers a portion of its risk
exposure to another insurer. What type of contractual arrangement is this?
Coinsurance contract
Mutuality agreement
Reinsurance contract
Reciprocity arrangement - ANSWER-Reinsurance contract
A hold-harmless clause is an example of risk
Avoidance
,Retention
Transfer
Sharing - ANSWER-Transfer
The law of large numbers enables an insurer to
Predict losses
Avoid adverse selection
Classify rates
Assure company profiles - ANSWER-Predict losses
What happens when an initial offer is answered with a counteroffer?
An arbitrator decides on a compromise
The counteroffer is legally enforceable
Initial offer is void
Initial offer is automatically accepted - ANSWER-Initial offer is void
What qualifies as acceptance of an insurance contract offer?
A declined policy
An issued policy
The application an initial premium
The initial premium only - ANSWER-An issued policy
XYZ Insurance Company gives direct authority to its producers to sell insurance
through an agency contract, but nothing is stated regarding the collection of
premiums. Which authority grants the producer the right to collect premiums?
,Implied authority
Apparent authority
Express authority
Assumed authority - ANSWER-Implied authority
The power directly given to a producer in an agency contract are called
Express
Apparent
Implied
Assumed - ANSWER-Express
In what way are insurance policies said to be aleatory?
Only one party makes any kind of enforceable promise
Involves the potential for the unequal exchange of value
Contract is prepared by only one party
Vagueness in a contract's wording is resolved in favor of the policyowner -
ANSWER-Involves the potential for the unequal exchange of value
An insurance company can be liable for a producer's unauthorized acts
Only when a felony is involved
When the agency contract is unclear concerning the authority given
At anytime
Only if the agency contract is unilateral - ANSWER-When the agency contract is
unclear concerning the authority given
, An agreement is reached when an insurance contract is formed. Which of the
following is NOT considered to be an element of an agreement?
Meeting of the minds
Offer
Acceptance
Equity - ANSWER-Equity
which of these do NOT indicate the presence of insurable interest in a life
insurance contract?
Lifelong friendship
Marriage
Blood-related
Co-owning a business - ANSWER-Lifelong friendship
An insurance contract may be voided if a misrepresentation found on the
application is determined to be
Conditional
Aleatory
Material
Intentional - ANSWER-Material
A contract is considered void in all of the following situations EXCEPT
When one party is a minor
When consideration is unequal
