NH WORKERS COMPENSATION 2026
TEST PAPER VERIFIED QUESTIONS
AND ANSWERS
◉ Agency. Answer: The legal relationship between two parties when
one of the parties acts on behalf of another.
◉ Agent Authority. Answer: When an agent acts within his or her
authority, the insurer or principal is bound or responsible for such action.
Three types: Actual or Express, Implied, and Apparent.
◉ Alien Insurer. Answer: An insurer which is authorized in any state
within the U.S., but its principal office is located outside this country.
◉ Domestic Insurer. Answer: An insurer which has its principal or home
office in a state where it is authorized. It is chartered in or formed under
the laws of the state where it is authorized.
◉ Foreign Insurer. Answer: An insurer that is authorized in one state but
its charter or principal office is in another state.
◉ Human Life Value Approach. Answer: A capitalized value of an
individual's net future earnings. In other words, it looks at the potential
lost earnings of a person as a measure of how much insurance to
purchase.
,◉ Insurable Interest. Answer: A financial or economic interest in the
person being covered. Must exist in life insurance contracts at the time
of application. Exists in marital relationships, between parents and kids,
in a business situation between a business and a key employee, or in a
debtor-creditor relationship.
◉ Insurance. Answer: The transfer of risk from one party to another
through a legal contract; or the transfer of risk through the pooling or
accumulation of funds. Spreads the risk of loss from one individual to
many.
◉ Law of Large Numbers. Answer: A mathematical law of probability
that states that the larger the number of occurrences (i.e., the number of
lives covered), the more predictable losses will be. As the number of
exposures increase, the more the actual results will approach the results
expected for a specific event.
◉ Life Insurance. Answer: The transfer of the risk of premature death
from one party (i.e., policy owner/insured) to another party (i.e.,
insurer).
◉ Mutual Insurer. Answer: An insurer which is "owned" by its
policyholders and is incorporated without capital stock. It issues
participating life insurance policies and may allow all policyholders to
share in its surplus in any particular year by receiving a dividend.
, ◉ Needs Approach. Answer: Focuses on determining lump sum needs
(education fund goals, emergency funds, bequests, charitable gifting, or
retirement income) and utilizes all the costs associate with death plus
financial objectives in order to arrive at a person's or family's total
capital needs.
◉ Premiums. Answer: payments made for insurance coverage
◉ Producers. Answer: (1) Agents who represent the insurer which
sponsors them; (2) Brokers who represent themselves and the insured
(i.e., the client or customer); (3) Solicitors who represent and solicit
insurance on behalf of an agents; and (4) Service representatives who are
employees of an insurer.
◉ Risk. Answer: The uncertainty or chance of financial loss.
◉ Risk Management. Answer: May be accomplished by: (1) detecting
the potential loss exposure; (2) selecting a method or tool to reduce risk;
(3) executing a course of action, and (4) periodically reviewing the
measures taken.
◉ Stock Insurer. Answer: An insurer that is owned by its stockholders
and formed as a corporation for the purpose of earning a profit for the
stockholders.
◉ Adhesion. Answer: An insurance policy is described as this because it
is drafted by the insurer and accepted by the applicant. In other words,
TEST PAPER VERIFIED QUESTIONS
AND ANSWERS
◉ Agency. Answer: The legal relationship between two parties when
one of the parties acts on behalf of another.
◉ Agent Authority. Answer: When an agent acts within his or her
authority, the insurer or principal is bound or responsible for such action.
Three types: Actual or Express, Implied, and Apparent.
◉ Alien Insurer. Answer: An insurer which is authorized in any state
within the U.S., but its principal office is located outside this country.
◉ Domestic Insurer. Answer: An insurer which has its principal or home
office in a state where it is authorized. It is chartered in or formed under
the laws of the state where it is authorized.
◉ Foreign Insurer. Answer: An insurer that is authorized in one state but
its charter or principal office is in another state.
◉ Human Life Value Approach. Answer: A capitalized value of an
individual's net future earnings. In other words, it looks at the potential
lost earnings of a person as a measure of how much insurance to
purchase.
,◉ Insurable Interest. Answer: A financial or economic interest in the
person being covered. Must exist in life insurance contracts at the time
of application. Exists in marital relationships, between parents and kids,
in a business situation between a business and a key employee, or in a
debtor-creditor relationship.
◉ Insurance. Answer: The transfer of risk from one party to another
through a legal contract; or the transfer of risk through the pooling or
accumulation of funds. Spreads the risk of loss from one individual to
many.
◉ Law of Large Numbers. Answer: A mathematical law of probability
that states that the larger the number of occurrences (i.e., the number of
lives covered), the more predictable losses will be. As the number of
exposures increase, the more the actual results will approach the results
expected for a specific event.
◉ Life Insurance. Answer: The transfer of the risk of premature death
from one party (i.e., policy owner/insured) to another party (i.e.,
insurer).
◉ Mutual Insurer. Answer: An insurer which is "owned" by its
policyholders and is incorporated without capital stock. It issues
participating life insurance policies and may allow all policyholders to
share in its surplus in any particular year by receiving a dividend.
, ◉ Needs Approach. Answer: Focuses on determining lump sum needs
(education fund goals, emergency funds, bequests, charitable gifting, or
retirement income) and utilizes all the costs associate with death plus
financial objectives in order to arrive at a person's or family's total
capital needs.
◉ Premiums. Answer: payments made for insurance coverage
◉ Producers. Answer: (1) Agents who represent the insurer which
sponsors them; (2) Brokers who represent themselves and the insured
(i.e., the client or customer); (3) Solicitors who represent and solicit
insurance on behalf of an agents; and (4) Service representatives who are
employees of an insurer.
◉ Risk. Answer: The uncertainty or chance of financial loss.
◉ Risk Management. Answer: May be accomplished by: (1) detecting
the potential loss exposure; (2) selecting a method or tool to reduce risk;
(3) executing a course of action, and (4) periodically reviewing the
measures taken.
◉ Stock Insurer. Answer: An insurer that is owned by its stockholders
and formed as a corporation for the purpose of earning a profit for the
stockholders.
◉ Adhesion. Answer: An insurance policy is described as this because it
is drafted by the insurer and accepted by the applicant. In other words,
