UHC EVENTS BASICS TEST PAPER 2025/2026 QUESTIONS
WITH ANSWERS GRADED A+
✔✔Characteristics of insurable risk - ✔✔CANHAM: calculable, affordable, non-
catastrophic, homogeneous, accidental and measurable
✔✔Who appoints the commissioner of commerce? - ✔✔The governor - he's NOT
elected
✔✔minimum benefit period for a long-term care policy is? - ✔✔12 months
✔✔How long till a health insurance policy can't be contested? - ✔✔2 years, unless for
fraudulent statements in application
✔✔Captive agent - ✔✔an insurance agent who represents only one insurance company
and who is, in effect, an employee of that company
✔✔High Deductible Health Plan - ✔✔An HSA
✔✔Non-qualified withdrawals from a health savings account are subject to income
taxes and penalty of? - ✔✔20%
✔✔How long is option period for COBRA? - ✔✔60 days
✔✔peril - ✔✔cause of loss, such as a fire
✔✔exposure - ✔✔risk insurer is liable for
✔✔Insurance Contract - ✔✔transfers risk from insured to insurer
✔✔STARR - ✔✔method of handling risk: sharing, transferring, avoidance, reduction and
retention
✔✔Stock insurer - ✔✔a corporation owned by stockholders, isn't participating and isn't
assessable. If they have a profit it is paid as a dividend to the stockholders.
✔✔Mutual insurer - ✔✔Owned by the policyowners, directed by board of directors
chosen by policyowners, is a participating company and isn't assessable
✔✔Fraternal insurer - ✔✔a mutual insurer that provides life and health insurance to
members of a social or religious organization, is a lodge system, is participating and is
assessable.
, ✔✔Adverse Selection - ✔✔A high-risk person benefits more from insurance, so is more
likely to purchase it. Insurance company doesn't like to have too many of these. These
people have higher premiums.
✔✔Reinsurance - ✔✔A form of insurance whereby one insurance company (the
reinsurer) in consideration of a premium paid to it, agrees to indemnify another
insurance company (the ceding company) for part or all of its liabilities from insurance
policies it has issued.
✔✔Self-insurance - ✔✔A business that pays its own claims
✔✔Surplus lines insurers - ✔✔insurance sold by unauthorized/non-admitted insurers, if
on states approved list of surplus liners.
✔✔Certificate of authority - ✔✔state license for an insurance company
✔✔Financial Ratings of Insurers - ✔✔financial strength rating: a report card of the
company
✔✔independent insurance agent - ✔✔represents many different insurance companies
and work for themselves or other agents
✔✔General Agent - ✔✔one who is authorized to execute the principal's business of a
particular kind, or all the principal's business at a particular place, if not all of one kind
✔✔Agency - ✔✔Is a relationship in which one person is authorized to represent and act
for another person or for a corporation. Agent(producer) acts on behalf of the
principal(insurer)
✔✔Express Authority - ✔✔the authority of an agent, stated in the document or
agreement creating the agency
✔✔Implied Authority - ✔✔an agent's authority to do things not specifically authorized in
order to carry out express authority. An example would be making business cards.
✔✔Apparent Authority - ✔✔The appearance or the assumption of authority based on
the actions, words, or deeds of the principal or because of circumstances the principal
created.
✔✔Fiduciary - ✔✔Is a person in a position of financial trust.
✔✔Commingling - ✔✔Mixing personal funds with the insured's or insurer's funds
✔✔Elements of a legal contract - ✔✔CLOAC:
WITH ANSWERS GRADED A+
✔✔Characteristics of insurable risk - ✔✔CANHAM: calculable, affordable, non-
catastrophic, homogeneous, accidental and measurable
✔✔Who appoints the commissioner of commerce? - ✔✔The governor - he's NOT
elected
✔✔minimum benefit period for a long-term care policy is? - ✔✔12 months
✔✔How long till a health insurance policy can't be contested? - ✔✔2 years, unless for
fraudulent statements in application
✔✔Captive agent - ✔✔an insurance agent who represents only one insurance company
and who is, in effect, an employee of that company
✔✔High Deductible Health Plan - ✔✔An HSA
✔✔Non-qualified withdrawals from a health savings account are subject to income
taxes and penalty of? - ✔✔20%
✔✔How long is option period for COBRA? - ✔✔60 days
✔✔peril - ✔✔cause of loss, such as a fire
✔✔exposure - ✔✔risk insurer is liable for
✔✔Insurance Contract - ✔✔transfers risk from insured to insurer
✔✔STARR - ✔✔method of handling risk: sharing, transferring, avoidance, reduction and
retention
✔✔Stock insurer - ✔✔a corporation owned by stockholders, isn't participating and isn't
assessable. If they have a profit it is paid as a dividend to the stockholders.
✔✔Mutual insurer - ✔✔Owned by the policyowners, directed by board of directors
chosen by policyowners, is a participating company and isn't assessable
✔✔Fraternal insurer - ✔✔a mutual insurer that provides life and health insurance to
members of a social or religious organization, is a lodge system, is participating and is
assessable.
, ✔✔Adverse Selection - ✔✔A high-risk person benefits more from insurance, so is more
likely to purchase it. Insurance company doesn't like to have too many of these. These
people have higher premiums.
✔✔Reinsurance - ✔✔A form of insurance whereby one insurance company (the
reinsurer) in consideration of a premium paid to it, agrees to indemnify another
insurance company (the ceding company) for part or all of its liabilities from insurance
policies it has issued.
✔✔Self-insurance - ✔✔A business that pays its own claims
✔✔Surplus lines insurers - ✔✔insurance sold by unauthorized/non-admitted insurers, if
on states approved list of surplus liners.
✔✔Certificate of authority - ✔✔state license for an insurance company
✔✔Financial Ratings of Insurers - ✔✔financial strength rating: a report card of the
company
✔✔independent insurance agent - ✔✔represents many different insurance companies
and work for themselves or other agents
✔✔General Agent - ✔✔one who is authorized to execute the principal's business of a
particular kind, or all the principal's business at a particular place, if not all of one kind
✔✔Agency - ✔✔Is a relationship in which one person is authorized to represent and act
for another person or for a corporation. Agent(producer) acts on behalf of the
principal(insurer)
✔✔Express Authority - ✔✔the authority of an agent, stated in the document or
agreement creating the agency
✔✔Implied Authority - ✔✔an agent's authority to do things not specifically authorized in
order to carry out express authority. An example would be making business cards.
✔✔Apparent Authority - ✔✔The appearance or the assumption of authority based on
the actions, words, or deeds of the principal or because of circumstances the principal
created.
✔✔Fiduciary - ✔✔Is a person in a position of financial trust.
✔✔Commingling - ✔✔Mixing personal funds with the insured's or insurer's funds
✔✔Elements of a legal contract - ✔✔CLOAC:
