ACCIDENT AND HEALTH INSURANCE EXAM 6
COMPREHENSIVE INSURANCE LICENSING
STUDY GUIDE 2026
◉ 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.
COMPREHENSIVE INSURANCE LICENSING
STUDY GUIDE 2026
◉ 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.
