2026 COMPLETE STUDY GUIDE WITH
DEFINITIONS AND ANSWERS
◉ Applicant or proposed insured. Answer: a person applying for
insurance
◉ Consent. Answer: permission to do something
◉ Insurable interest. Answer: the policyowner facing the possibility
of losing something of value in the event of loss
◉ Insurance policy. Answer: a contract between a policyowner
(and/or insured) and an insurance company which agrees to pay the
insured or the beneficiary for loss caused by specific events
◉ Insured. Answer: person covered by the insurance policy; may or
may not be the policyowner
◉ Insurer (principal). Answer: the company who issues an
insurance policy