NYS Insurance Licensing Exam with Verified Answers
1. insurance trans- the risk of an loss for an individual or business to an
fers insurance company which spreads out the costs to many
individuals
2. agency contract a contract that is held between insurer and an agent/pro-
ducer containing the expressed authority given to the
agent/producer, and the duties/responsibilities to the prin-
cipal, any agent in violation of the agency contract may be
held personally liable to the insurer
3. agent legal representative of a an insurance company that acts
for another person or entity known as the principal with
regard to contractual arrangements
4. beneficiary receives benefits from the insurance
5. death benefit the amount paid when a claim is issued against policy of
insurance
6. 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
7. 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
8. 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
9. speculative the type that may either lead to loss or gain. example
gambling. these are NOT insurable
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, NYS Insurance Licensing Exam with Verified Answers
10. exposure the unit of measure used to determine the premiums for
insurance coverage
11. hazards broken into 2 subtypes (physical, moral, morale); condi-
tions that increase the probability of the insured to experi-
ence a loss
2/7
1. insurance trans- the risk of an loss for an individual or business to an
fers insurance company which spreads out the costs to many
individuals
2. agency contract a contract that is held between insurer and an agent/pro-
ducer containing the expressed authority given to the
agent/producer, and the duties/responsibilities to the prin-
cipal, any agent in violation of the agency contract may be
held personally liable to the insurer
3. agent legal representative of a an insurance company that acts
for another person or entity known as the principal with
regard to contractual arrangements
4. beneficiary receives benefits from the insurance
5. death benefit the amount paid when a claim is issued against policy of
insurance
6. 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
7. 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
8. 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
9. speculative the type that may either lead to loss or gain. example
gambling. these are NOT insurable
1/7
, NYS Insurance Licensing Exam with Verified Answers
10. exposure the unit of measure used to determine the premiums for
insurance coverage
11. hazards broken into 2 subtypes (physical, moral, morale); condi-
tions that increase the probability of the insured to experi-
ence a loss
2/7
