ACCIDENT AND HEALTH INSURANCE EXAM 6
CORE HEALTH INSURANCE POLICIES AND
BENEFITS REVIEW 2026
◉ 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.
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.
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.
Answer: As the number of insured units increases, the number of
losses decreases
,◉ Purchasing insurance is an example of risk
Transference
Avoidance
Retention
Sharing.
Answer: Transference
◉ A business becoming incorporated is an example of risk
Reduction
Severance
Retention
Transfer.
Answer: Transfer
◉ How can an insurance company minimize exposure to loss?
Risk concealing
Reinsuring risks
Reissuance
Risk assumption.
Answer: 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.
Answer: That the chance of loss be calculated
◉ which of the following can be defined as "the potential for loss"?
Hazard
Risk
Transference
Peril.
Answer: Risk
◉ Which term describes the elimination of a hazard?
Risk avoidance
Risk retention
Risk transference
Risk pooling.
Answer: Risk avoidance
◉ which one of these is Not considered to be an element of an
insurable risk?
CORE HEALTH INSURANCE POLICIES AND
BENEFITS REVIEW 2026
◉ 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.
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.
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.
Answer: As the number of insured units increases, the number of
losses decreases
,◉ Purchasing insurance is an example of risk
Transference
Avoidance
Retention
Sharing.
Answer: Transference
◉ A business becoming incorporated is an example of risk
Reduction
Severance
Retention
Transfer.
Answer: Transfer
◉ How can an insurance company minimize exposure to loss?
Risk concealing
Reinsuring risks
Reissuance
Risk assumption.
Answer: 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.
Answer: That the chance of loss be calculated
◉ which of the following can be defined as "the potential for loss"?
Hazard
Risk
Transference
Peril.
Answer: Risk
◉ Which term describes the elimination of a hazard?
Risk avoidance
Risk retention
Risk transference
Risk pooling.
Answer: Risk avoidance
◉ which one of these is Not considered to be an element of an
insurable risk?
