1
Massachusetts Life and Health Insurance Exam
2025/2026 || QUESTIONS WITH CORRECT DETAILED
ANSWERS || 100% GUARANTEED PASS <BRAND
NEW VERSION>
Insurance - (answers)Transfer of Risk
Risk - (answers)Uncertainty/ Possibility of Loss
Exposure - (answers)Risks for which the insurance company would be liable
Peril - (answers)Cause of Loss
Hazard - (answers)Something that causes an increase in the chance of loss
Physical Hazard - (answers)Hazard that can be seen
Moral Hazard - (answers)A belief that intentionally causing a loss is acceptable
Morale Hazard - (answers)Carelessness
STARR - (answers)Method of handling risk
, 2
S- Method of handling risks - (answers)Sharing
T- Method of handling risk - (answers)Transfer
A- Method of handling risk - (answers)Avoidance
R- Method of handling risk - (answers)Retention
R- Method of handling risk - (answers)Reduction
Contract Policy - (answers)An agreement between the insured and the insurer
Law of Large Numbers - (answers)The larger the group, the more accurate losses
can be predicted
CANHAM Risks - (answers)Can be insured with the following characteristics
C- CANHAM Risks - (answers)Calculable
A- CANHAM Risks - (answers)Affordable
, 3
N- CANHAM Risks - (answers)Non- Catastrophic
H- CANHAM Risks - (answers)Homogeneous
A- CANHAM Risks - (answers)Accidental
M- CANHAM Risks - (answers)Measurable
Adverse Selection - (answers)risks that have a greater than average chance of loss
Reinsurance- - (answers)An insurance company sells some of its risk to other
insurance companies.
Facultative Reinsurance - (answers)the reinsurer evaluates each risk before
allowing the transfer
Treaty Reinsurance - (answers)the reinsurer accepts the transfer according to an
agreement called a treaty
Stock Insurer - (answers)An insurer that is owned by its stockholders and formed
as a corporation for the purpose of earning a profit for the stockholders.- Issues
Non Par Policies
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Mutual Insurer - (answers)An insurer that is owned by its policyholders and
formed as a corporation for the purpose of providing insurance to them.- Non
Taxable dividends & Participating Polcies
Fraternal Insurer - (answers)provides insurance and other benefits
must be a member of the society to get the benefits
Reciprocal Insurers - (answers)unincorporated groups of people that provide
insurance for one another through individual indemnity agreements
Llyod's Associations - (answers)Organizations that provide support facilities for
underwriters or groups of individuals that accept insurance risk.
Risk Retention Group - (answers)A liability insurance company owned by its
members, which are exposed to similar liability risks by virtue of being in the
same business or industry.
Risk Purchasing Groups - (answers)Groups of people with similar insurance needs
who form an organization to buy insurance as a group.
Self-insurance - (answers)a business that pays its own claims
Residual Market - (answers)insurance from the state or federal government
Massachusetts Life and Health Insurance Exam
2025/2026 || QUESTIONS WITH CORRECT DETAILED
ANSWERS || 100% GUARANTEED PASS <BRAND
NEW VERSION>
Insurance - (answers)Transfer of Risk
Risk - (answers)Uncertainty/ Possibility of Loss
Exposure - (answers)Risks for which the insurance company would be liable
Peril - (answers)Cause of Loss
Hazard - (answers)Something that causes an increase in the chance of loss
Physical Hazard - (answers)Hazard that can be seen
Moral Hazard - (answers)A belief that intentionally causing a loss is acceptable
Morale Hazard - (answers)Carelessness
STARR - (answers)Method of handling risk
, 2
S- Method of handling risks - (answers)Sharing
T- Method of handling risk - (answers)Transfer
A- Method of handling risk - (answers)Avoidance
R- Method of handling risk - (answers)Retention
R- Method of handling risk - (answers)Reduction
Contract Policy - (answers)An agreement between the insured and the insurer
Law of Large Numbers - (answers)The larger the group, the more accurate losses
can be predicted
CANHAM Risks - (answers)Can be insured with the following characteristics
C- CANHAM Risks - (answers)Calculable
A- CANHAM Risks - (answers)Affordable
, 3
N- CANHAM Risks - (answers)Non- Catastrophic
H- CANHAM Risks - (answers)Homogeneous
A- CANHAM Risks - (answers)Accidental
M- CANHAM Risks - (answers)Measurable
Adverse Selection - (answers)risks that have a greater than average chance of loss
Reinsurance- - (answers)An insurance company sells some of its risk to other
insurance companies.
Facultative Reinsurance - (answers)the reinsurer evaluates each risk before
allowing the transfer
Treaty Reinsurance - (answers)the reinsurer accepts the transfer according to an
agreement called a treaty
Stock Insurer - (answers)An insurer that is owned by its stockholders and formed
as a corporation for the purpose of earning a profit for the stockholders.- Issues
Non Par Policies
, 4
Mutual Insurer - (answers)An insurer that is owned by its policyholders and
formed as a corporation for the purpose of providing insurance to them.- Non
Taxable dividends & Participating Polcies
Fraternal Insurer - (answers)provides insurance and other benefits
must be a member of the society to get the benefits
Reciprocal Insurers - (answers)unincorporated groups of people that provide
insurance for one another through individual indemnity agreements
Llyod's Associations - (answers)Organizations that provide support facilities for
underwriters or groups of individuals that accept insurance risk.
Risk Retention Group - (answers)A liability insurance company owned by its
members, which are exposed to similar liability risks by virtue of being in the
same business or industry.
Risk Purchasing Groups - (answers)Groups of people with similar insurance needs
who form an organization to buy insurance as a group.
Self-insurance - (answers)a business that pays its own claims
Residual Market - (answers)insurance from the state or federal government
