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Wisconsin Accident and Health Insurance Exam 2023 Questions and Answers with complete solution
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Wisconsin Accident and Health Insurance Exam 2023 Questions and Answers with complete solution
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Wisconsin Accident and Health Insurance Exam 2023 Questions and Answers with complete solutionDividends from a stock company are normally sent to:
Beneficiaries Shareholders
Policy holders
Insureds Answer- 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 Answer- 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 Answer- Producer contract
Dividends from a mutual insurance company are paid to whom?
Policyholders
Beneficiaries
Preferred stockholders
Stockholders Answer- Policyholders
A stock insurance company is owned by its
Officers
Board directors Policyowners Shareholders Answer- 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 Answer- 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 Answer- 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 Answer- Risk retention group
Which group is the Do not Registry designed to protect against?
Telemarketers
Charities
Political organizations Relatives Answer- 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 Answer- 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 Answer- 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 Answer- 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 Answer- 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 Answer- As the number of insured units increases, the number of losses decreases
Purchasing insurance is an example of risk
Transference Avoidance Retention
Sharing Answer- Transference
A business becoming incorporated is an example of risk
Reduction Severance Retention Transfer Answer- Transfer
How can an insurance company minimize exposure to loss? Risk concealing
Reinsuring risks
Reissuance Risk assumption Answer- Reinsuring risks
An insurable risk requires
That the chance for both a loss or gain exists The loss must be catastrophic That the chance of loss be calculated
that the loss must be incalculable Answer- That the chance of loss be calculated
which of the following can be defined as "the potential for loss"?
Hazard
Risk
Transference
Peril Answer- Risk
Which term describes the elimination of a hazard? Risk avoidance Risk retention Risk transference Risk pooling Answer- Risk avoidance
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
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