WISCONSIN ACCIDENT AND HEALTH INSURANCE EXAM |
QUESTIONS AND ANSWERS | VERIFIED ANSWERS | LATEST EXAM
UPDATE
Dividends from a stock company are normally sent to:
Beneficiaries
Shareholders
Policy holders
Insureds - CORRECT 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 - CORRECT 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 - CORRECT ANSWER - Producer contract
Dividends from a mutual insurance company are paid to whom?
Policyholders
Beneficiaries
,Preferred stockholders
Stockholders - CORRECT ANSWER - Policyholders
A stock insurance company is owned by its
Officers
Board directors
Policyowners
Shareholders - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER - Risk retention group
Which group is the Do not Registry designed to protect against?
Telemarketers
Charities
Political organizations
Relatives - CORRECT 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 - CORRECT 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 - CORRECT
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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER - As the number of insured
units increases, the number of losses decreases
Purchasing insurance is an example of risk
Transference
Avoidance
Retention
Sharing - CORRECT ANSWER - Transference
A business becoming incorporated is an example of risk
Reduction
Severance
Retention
Transfer - CORRECT ANSWER - Transfer
How can an insurance company minimize exposure to loss?
Risk concealing
QUESTIONS AND ANSWERS | VERIFIED ANSWERS | LATEST EXAM
UPDATE
Dividends from a stock company are normally sent to:
Beneficiaries
Shareholders
Policy holders
Insureds - CORRECT 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 - CORRECT 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 - CORRECT ANSWER - Producer contract
Dividends from a mutual insurance company are paid to whom?
Policyholders
Beneficiaries
,Preferred stockholders
Stockholders - CORRECT ANSWER - Policyholders
A stock insurance company is owned by its
Officers
Board directors
Policyowners
Shareholders - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER - Risk retention group
Which group is the Do not Registry designed to protect against?
Telemarketers
Charities
Political organizations
Relatives - CORRECT 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 - CORRECT 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 - CORRECT
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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER - As the number of insured
units increases, the number of losses decreases
Purchasing insurance is an example of risk
Transference
Avoidance
Retention
Sharing - CORRECT ANSWER - Transference
A business becoming incorporated is an example of risk
Reduction
Severance
Retention
Transfer - CORRECT ANSWER - Transfer
How can an insurance company minimize exposure to loss?
Risk concealing
