WISCONSIN ACCIDENT AND HEALTH
INSURANCE ACTUAL EXAM PAPER WITH
100% CORRECT SOLUTIONS GRADED A+
2026.
⫸ 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. Ans: Life insurance
⫸ Which of the following outlines the authority given to the
producer on behalf of the insurer?
Rebating arrangement
Commingling contract
Controlled business clause
Producer contract. Ans: Producer contract
⫸ Dividends from a mutual insurance company are paid to whom?
Policyholders
Beneficiaries
Preferred stockholders
,Stockholders. Ans: Policyholders
⫸ A stock insurance company is owned by its
Officers
Board directors
Policyowners
Shareholders. Ans: 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. Ans: Attorney-in-fact
⫸ which reinsurance contract between two insurers involves an
automatic sharing of the risks assumed?
Arbitrage reinsurance
Facultative reinsurance
Excess reinsurance
Treaty reinsurance. Ans: 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. Ans: Risk retention group
⫸ Which group is the Do not Registry designed to protect against?
Telemarketers
Charities
Political organizations
Relatives. Ans: Telemarketers
⫸ who regulates an insurer's claim settlement practices?
National Association of Claim Adjusters
State attorney general
National Association of insurance Commissioners
State insurance departments. Ans: 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. Ans:
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. Ans: 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. Ans: Reduction
⫸ Which of these statements regarding insurance is false?
One way insurers deal with catastrophic loss is through reinsurance
As the number of insured units increases, the number of losses
decreases
Speculative risk cannot be insured
Pure risk can be insured. Ans: As the number of insured units
increases, the number of losses decreases
⫸ Purchasing insurance is an example of risk
Transference
Avoidance
INSURANCE ACTUAL EXAM PAPER WITH
100% CORRECT SOLUTIONS GRADED A+
2026.
⫸ 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. Ans: Life insurance
⫸ Which of the following outlines the authority given to the
producer on behalf of the insurer?
Rebating arrangement
Commingling contract
Controlled business clause
Producer contract. Ans: Producer contract
⫸ Dividends from a mutual insurance company are paid to whom?
Policyholders
Beneficiaries
Preferred stockholders
,Stockholders. Ans: Policyholders
⫸ A stock insurance company is owned by its
Officers
Board directors
Policyowners
Shareholders. Ans: 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. Ans: Attorney-in-fact
⫸ which reinsurance contract between two insurers involves an
automatic sharing of the risks assumed?
Arbitrage reinsurance
Facultative reinsurance
Excess reinsurance
Treaty reinsurance. Ans: 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. Ans: Risk retention group
⫸ Which group is the Do not Registry designed to protect against?
Telemarketers
Charities
Political organizations
Relatives. Ans: Telemarketers
⫸ who regulates an insurer's claim settlement practices?
National Association of Claim Adjusters
State attorney general
National Association of insurance Commissioners
State insurance departments. Ans: 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. Ans:
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. Ans: 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. Ans: Reduction
⫸ Which of these statements regarding insurance is false?
One way insurers deal with catastrophic loss is through reinsurance
As the number of insured units increases, the number of losses
decreases
Speculative risk cannot be insured
Pure risk can be insured. Ans: As the number of insured units
increases, the number of losses decreases
⫸ Purchasing insurance is an example of risk
Transference
Avoidance
