Wisconsin Accident and Health
Insurance Exam Q&A 100% Pass
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
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,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
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,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
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, 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
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Insurance Exam Q&A 100% Pass
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
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,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
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,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
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, 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
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
