Washington State Property & Casualty
Insurance Exam Question and Answer
(2026) | Exam Questions with Explained
Answers and Rationales | Grade A+
• concealment . Answer: withholding of known facts which, if material, can void a
contract
• misrepresentation . Answer: A false statement or lie that can render the contract
void
• peril . Answer: cause of a possible loss
• hazard . Answer: a circumstance that increases the likelihood of a loss
• adhesion . Answer: a contract offered on a "take-it-or-leave-it" basis by an
insurer, in which the insured's only option is to accept or reject the contract. Any
ambiguities in the contract will be settled in favor of the insured
• adverse selection . Answer: the tendency of risks with higher probability of loss
to purchase and maintain insurance more often than the risks who present lower
probability
• aggregate limit . Answer: maximum limit of coverage available under a liability
policy during a policy year, regardless of the number of claims that may be made
or the number of accidents that may occur
, • aleatory . Answer: a contract in which the participating parties agree to exchange
unequal amounts
• apparent authority . Answer: the appearance or the assumption of authority
• avoidance . Answer: a method of dealing with risk by deliberately keeping away
from it
• bailee . Answer: a person or entity that has possession of personal property
entrusted to him/her by the owner
• beneficiary . Answer: the person who receives the proceeds from the insurance
policy
• binder . Answer: a temporary contract that puts an insurance policy into force
before the premium has been paid
• blanket bond . Answer: a type of bond that covers losses caused by dishonest
employees
• blanket insurance . Answer: a single property insurance policy that provides
coverage for multiple classes of property at one location, or provides coverage for
one or more classes of property at multiple locations.
• boycott . Answer: an unfair trade practice in which one person refuses to do
business with another until he or she agrees to certain conditions
• burglary . Answer: forced entry into another's premises with felonious intent
Insurance Exam Question and Answer
(2026) | Exam Questions with Explained
Answers and Rationales | Grade A+
• concealment . Answer: withholding of known facts which, if material, can void a
contract
• misrepresentation . Answer: A false statement or lie that can render the contract
void
• peril . Answer: cause of a possible loss
• hazard . Answer: a circumstance that increases the likelihood of a loss
• adhesion . Answer: a contract offered on a "take-it-or-leave-it" basis by an
insurer, in which the insured's only option is to accept or reject the contract. Any
ambiguities in the contract will be settled in favor of the insured
• adverse selection . Answer: the tendency of risks with higher probability of loss
to purchase and maintain insurance more often than the risks who present lower
probability
• aggregate limit . Answer: maximum limit of coverage available under a liability
policy during a policy year, regardless of the number of claims that may be made
or the number of accidents that may occur
, • aleatory . Answer: a contract in which the participating parties agree to exchange
unequal amounts
• apparent authority . Answer: the appearance or the assumption of authority
• avoidance . Answer: a method of dealing with risk by deliberately keeping away
from it
• bailee . Answer: a person or entity that has possession of personal property
entrusted to him/her by the owner
• beneficiary . Answer: the person who receives the proceeds from the insurance
policy
• binder . Answer: a temporary contract that puts an insurance policy into force
before the premium has been paid
• blanket bond . Answer: a type of bond that covers losses caused by dishonest
employees
• blanket insurance . Answer: a single property insurance policy that provides
coverage for multiple classes of property at one location, or provides coverage for
one or more classes of property at multiple locations.
• boycott . Answer: an unfair trade practice in which one person refuses to do
business with another until he or she agrees to certain conditions
• burglary . Answer: forced entry into another's premises with felonious intent
