Wisconsin Accident and Health Insurance Exam 2023 Questions and Answers with complete solution
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Course
Wisconsin
Institution
Wisconsin
Wisconsin Accident and Health Insurance Exam 2023 Questions and Answers with complete solution
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...
wisconsin accident and health insurance exam 2023 questions and answers with complete solution dividends from a stock company are normally sent to beneficiaries shareholders policy holders insureds
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Wisconsin Accident and Health Insurance Exam 2023
Questions and Answers with complete solution
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
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
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
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
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
As the number of insured units increases, the number of losses decreases
Purchasing insurance is an example of risk
Transference
Avoidance
Retention
Sharing
Transference
A business becoming incorporated is an example of risk
Reduction
Severance
Retention
Transfer
Transfer
How can an insurance company minimize exposure to loss?
Risk concealing
Reinsuring risks
Reissuance
Risk assumption
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
That the chance of loss be calculated
which of the following can be defined as "the potential for loss"?
Hazard
Risk
Transference
Peril
Risk
Which term describes the elimination of a hazard?
Risk avoidance
Risk retention
Risk transference
Risk pooling
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
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
Reinsurance contract
A hold-harmless clause is an example of risk
Avoidance
Retention
Transfer
Sharing
Transfer
The law of large numbers enables an insurer to
Predict losses
Avoid adverse selection
Classify rates
Assure company profiles
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
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
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
Implied authority
The power directly given to a producer in an agency contract are called
Express
Apparent
Implied
Assumed
Express
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