1
WASHINGTON LIFE AND HEALTH EXAM ACTUAL
EXAM LATEST UPDATE COMPLETE QUESTIONS
AND CORRECT ANSWERS ALREADY GRADED A+
beneficiary - (answer)the person who is paid when a claim
is submitted
agent/producer - (answer)acts as a legal representative
of the insurance company
broker - (answer)representative of the Insured, not the insurance company
risk - (answer)The chance or uncertainty of loss
Pure risk - (answer)the chance of experiencing a loss (without the possibility of
gain). Only downside, no upside.
Speculative risk - (answer)s the chance of loss one accepts in the hope of
realizing a gain
Risk avoidance - (answer)staying away from risky activities altogether
Risk reduction - (answer)reduce the chance of something bad happening
Risk shifting - (answer)Get someone else to accept the risk
Buying insurance - (answer)transfer a portion of your risk to the Insurer
, 2
Risk Retention - (answer)the individual or business that opts not to buy
insurance retains the entire risk
Indemnification - (answer)an insurance concept that states that some portions
of the insurance industry prefer that we be made only whole after a loss rather
than coming out ahead (Only getting back what you are owed, not getting more
than what you had to start with)
Subrogation - (answer)the transfer to the Insurer of the Insured's rights to
recover damages from a responsible third party
Peril - (answer)the cause of loss
Law of Large numbers - (answer)the mathematical concept that makes it
easier to predict losses if we have a large number of Insureds
Insurable losses are... - (answer)Economic, Predictable, Accidental,
Measurable, Non-Catastrophic
non-participating companies - (answer)Stock companies that exist for the sole
purpose of generating profits
for their stockholders
participating companies - (answer)A company owned by its policy holders
where the profits are distributed among policy holders
Social Security act - (answer)a guarantee that government
would never again allow workers (and their families) to become
, 3
destitute
OASDI (Social Security) - (answer)Old Age, Survivors, and Disability
Insurance...Federal Government law
FICA - (answer)Federal Insurance Contributions Act
or FICA, payroll taxes levied on employees, employers, and the self-employed.
Not covered by social security - (answer)payroll taxes levied on employees,
employers,
and the self-employed.
FICA Fully Insured - (answer)(Worked for 10 years) payroll taxes levied on
employees, employers,
and the self-employed.
Retirement Benefits;
Disability Income Benefits; and
Survivor Benefits.
Currently Insured - (answer)Worked less than ten years. Only eligeable for
Survivor Benefits
Average Indexed Monthly
Earnings - (answer)Averages earnings over time period. Either way, the more a
worker
has paid into Social Security, the more the worker (or dependents)
will get out of it. (What you get at age 65)
, 4
Primary Insurance Amount (PIA). - (answer)Full retirement benefit someone is
entitled to at age 65 (some cases, 66-67)
elimination period (Disability) - (answer)the person must be
disabled for 5 months before starting to receive Disability
Benefits
underwriting - (answer)the selection and classification of risks.
actuary - (answer)A person who tracks the lifespan and chance of illness or
accident based on specific factors
Mortality table - (answer)predict the age at which
people in a given group are likely to die (Used by life insurers)
Morbidity table - (answer)predict how often
people in a given group are likely to get sick or have an
accident. (Used by health insurers)
field underwriters - (answer)Insurance agents
declined risks - (answer)Applicants who are too risky are declined
Adverse selection - (answer)the tendency for high
risk people to be more likely to apply for insurance than low risk
people.
WASHINGTON LIFE AND HEALTH EXAM ACTUAL
EXAM LATEST UPDATE COMPLETE QUESTIONS
AND CORRECT ANSWERS ALREADY GRADED A+
beneficiary - (answer)the person who is paid when a claim
is submitted
agent/producer - (answer)acts as a legal representative
of the insurance company
broker - (answer)representative of the Insured, not the insurance company
risk - (answer)The chance or uncertainty of loss
Pure risk - (answer)the chance of experiencing a loss (without the possibility of
gain). Only downside, no upside.
Speculative risk - (answer)s the chance of loss one accepts in the hope of
realizing a gain
Risk avoidance - (answer)staying away from risky activities altogether
Risk reduction - (answer)reduce the chance of something bad happening
Risk shifting - (answer)Get someone else to accept the risk
Buying insurance - (answer)transfer a portion of your risk to the Insurer
, 2
Risk Retention - (answer)the individual or business that opts not to buy
insurance retains the entire risk
Indemnification - (answer)an insurance concept that states that some portions
of the insurance industry prefer that we be made only whole after a loss rather
than coming out ahead (Only getting back what you are owed, not getting more
than what you had to start with)
Subrogation - (answer)the transfer to the Insurer of the Insured's rights to
recover damages from a responsible third party
Peril - (answer)the cause of loss
Law of Large numbers - (answer)the mathematical concept that makes it
easier to predict losses if we have a large number of Insureds
Insurable losses are... - (answer)Economic, Predictable, Accidental,
Measurable, Non-Catastrophic
non-participating companies - (answer)Stock companies that exist for the sole
purpose of generating profits
for their stockholders
participating companies - (answer)A company owned by its policy holders
where the profits are distributed among policy holders
Social Security act - (answer)a guarantee that government
would never again allow workers (and their families) to become
, 3
destitute
OASDI (Social Security) - (answer)Old Age, Survivors, and Disability
Insurance...Federal Government law
FICA - (answer)Federal Insurance Contributions Act
or FICA, payroll taxes levied on employees, employers, and the self-employed.
Not covered by social security - (answer)payroll taxes levied on employees,
employers,
and the self-employed.
FICA Fully Insured - (answer)(Worked for 10 years) payroll taxes levied on
employees, employers,
and the self-employed.
Retirement Benefits;
Disability Income Benefits; and
Survivor Benefits.
Currently Insured - (answer)Worked less than ten years. Only eligeable for
Survivor Benefits
Average Indexed Monthly
Earnings - (answer)Averages earnings over time period. Either way, the more a
worker
has paid into Social Security, the more the worker (or dependents)
will get out of it. (What you get at age 65)
, 4
Primary Insurance Amount (PIA). - (answer)Full retirement benefit someone is
entitled to at age 65 (some cases, 66-67)
elimination period (Disability) - (answer)the person must be
disabled for 5 months before starting to receive Disability
Benefits
underwriting - (answer)the selection and classification of risks.
actuary - (answer)A person who tracks the lifespan and chance of illness or
accident based on specific factors
Mortality table - (answer)predict the age at which
people in a given group are likely to die (Used by life insurers)
Morbidity table - (answer)predict how often
people in a given group are likely to get sick or have an
accident. (Used by health insurers)
field underwriters - (answer)Insurance agents
declined risks - (answer)Applicants who are too risky are declined
Adverse selection - (answer)the tendency for high
risk people to be more likely to apply for insurance than low risk
people.
