NYS Insurance Licensing Exam 2023 with 100% correct answers

insurance transfers the risk of an loss for an individual or business to an insurance company which spreads out the costs to many individuals agency contract a contract that is held between insurer and an agent/producer containing the expressed authority given to the agent/producer, and the duties/responsibilities to the principal, any agent in violation of the agency contract may be held personally liable to the insurer agent legal representative of a an insurance company that acts for another person or entity known as the principal with regard to contractual arrangements beneficiary receives benefits from the insurance death benefit the amount paid when a claim is issued against policy of insurance insurance policy a contact b/w insured and insurance company that agrees to pay the insured in the event of unforseen events caused by specific events risk is the uncertainty or chance of loss occurring only two types of risks exist which are speculative and pure and only one is insurable pure risk is the the certainty that loss or no change will occur with no financial gain to be sought only this type of risk is insurable speculative the type that may either lead to loss or gain. example gambling. these are NOT insurable exposure the unit of measure used to determine the premiums for insurance coverage hazards broken into 2 subtypes (physical, moral, morale); conditions that increase the probability of the insured to experience a loss physical hazard hazards arising from material, structural, and operational features moral hazard hazards to applicants that may lie or provide fraudulent information to insurance companies