Virginia Insurance Exam
questions fully solved & updated
2025
Applicant - answer Also known as Proposed
Insured or a person applying for insurance
Broker - answer An insurance producer not
appointed by an insurer and is deemed to
represent the client
Insured - answer The person covered by the
insurance policy. This person may or may not be
the policy owner
Insurer - answer Also known as the Principal: the
company who issues an insurance policy
Policy Owner - answer There person entitled to
exercise the rights and privileges in the policy
Premium - answer The money paid to the
insurance company for the policy
, Reciprocity/Reciprocal - answer A metal
interchange of rights and privileges
Risk and the two types - answer The uncertainty
or chance of a loss occurring
- Pure Risk
- Speculative Risk
Pure Risk - answer - Situations that can only
result in a loss or no change. There is no
opportunity for financial gain. Pure risk is the only
risk that insurance companies are willing to to
accept
Speculative Risk - answer - Opportunity for either
loss or gain. These risks are not insurable (Think of
the horse race betting example or any kind of
gambling)
Exposure - answer Unit of measure used to
determine rates charged for insurance coverage.
To remember this, think of it as the insurance
company determining the amount of risk that they
are "exposed" to when trying to determine how
much to charge someone
questions fully solved & updated
2025
Applicant - answer Also known as Proposed
Insured or a person applying for insurance
Broker - answer An insurance producer not
appointed by an insurer and is deemed to
represent the client
Insured - answer The person covered by the
insurance policy. This person may or may not be
the policy owner
Insurer - answer Also known as the Principal: the
company who issues an insurance policy
Policy Owner - answer There person entitled to
exercise the rights and privileges in the policy
Premium - answer The money paid to the
insurance company for the policy
, Reciprocity/Reciprocal - answer A metal
interchange of rights and privileges
Risk and the two types - answer The uncertainty
or chance of a loss occurring
- Pure Risk
- Speculative Risk
Pure Risk - answer - Situations that can only
result in a loss or no change. There is no
opportunity for financial gain. Pure risk is the only
risk that insurance companies are willing to to
accept
Speculative Risk - answer - Opportunity for either
loss or gain. These risks are not insurable (Think of
the horse race betting example or any kind of
gambling)
Exposure - answer Unit of measure used to
determine rates charged for insurance coverage.
To remember this, think of it as the insurance
company determining the amount of risk that they
are "exposed" to when trying to determine how
much to charge someone
