NY P&C Brokers License General
Insurance Exam Questions and
Answers 100% PASS
Insurance—ANSWER--transfers the risk of a loss from an individual or business entity to an
insurance company
Agent/Producer—ANSWER--a person who acts for another person or entity known as the
principal with regard to contractual arrangements with third parties; a legal representative
of an insurance company
Agent/agency contract—ANSWER--a contract that is held between an insurer and an
agent/producer, containing the expressed authority given to the agent/producer, outlining
the duties and responsibilities to the principal. If the agent is in violation of the agency
contract (or agreement), he or she may be held personally liable to the insurer for breach of
contract
Applicant or proposed insured—ANSWER--a person who requests of seeks insurance from
an insurer
Beneficiary—ANSWER--the person who receives the benefits from the policy of insurance
, 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
Insurer (principal)—ANSWER--the company who issues a policy of insurance
Policyowner—ANSWER--the person who is entitled to exercise the rights and privileges in
the policy and who may or may not be the insured
Premium—ANSWER--the money paid to the insurance company for the policy of insurance
Risk—ANSWER--the uncertainty or chance of a loss occurring
Two Types of Risk—ANSWER--1. Pure
2. Speculative
Pure Risk—ANSWER--refers to situation that can only result in a loss or no change. There is
no opportunity for financial gain. Only type of risk insurance companies will write
Speculative Risk—ANSWER--involves the opportunity for either a loss or gain. Not an
insurable risk
Hazards—ANSWER--conditions or situations that increase the probability of an insured loss
occurring
Three Types of Hazards—ANSWER--1. Physical
2. Moral
3. Morale
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
Insurance Exam Questions and
Answers 100% PASS
Insurance—ANSWER--transfers the risk of a loss from an individual or business entity to an
insurance company
Agent/Producer—ANSWER--a person who acts for another person or entity known as the
principal with regard to contractual arrangements with third parties; a legal representative
of an insurance company
Agent/agency contract—ANSWER--a contract that is held between an insurer and an
agent/producer, containing the expressed authority given to the agent/producer, outlining
the duties and responsibilities to the principal. If the agent is in violation of the agency
contract (or agreement), he or she may be held personally liable to the insurer for breach of
contract
Applicant or proposed insured—ANSWER--a person who requests of seeks insurance from
an insurer
Beneficiary—ANSWER--the person who receives the benefits from the policy of insurance
, 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
Insurer (principal)—ANSWER--the company who issues a policy of insurance
Policyowner—ANSWER--the person who is entitled to exercise the rights and privileges in
the policy and who may or may not be the insured
Premium—ANSWER--the money paid to the insurance company for the policy of insurance
Risk—ANSWER--the uncertainty or chance of a loss occurring
Two Types of Risk—ANSWER--1. Pure
2. Speculative
Pure Risk—ANSWER--refers to situation that can only result in a loss or no change. There is
no opportunity for financial gain. Only type of risk insurance companies will write
Speculative Risk—ANSWER--involves the opportunity for either a loss or gain. Not an
insurable risk
Hazards—ANSWER--conditions or situations that increase the probability of an insured loss
occurring
Three Types of Hazards—ANSWER--1. Physical
2. Moral
3. Morale
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
