NY Licensing Exam Questions and
Answers 100% PASS
Groups that want insurance coverage for their liability risks associated with theme parks
and go-karts could obtain this coverage from which insurer?—ANSWER--Risk Retention
Group
In a reciprocal insurance company, the exchange of insurance is effected through:—
ANSWER--An attorney-in-fact
Which of the following is an example of a physical hazard?—ANSWER--The storage of
flammables near a furnace
Which of the following is correct about a stock insurance company?—ANSWER--A stock
insurance company is run by officers and directors and has a stated amount of capital stock
owned by stockholders (a stock insurance company is owned by its stockholders)
Where can you find insurance coverage after being rejected by voluntary market insurers?—
ANSWER--Residual Market
D was convicted of a felony involving breach of trust. Later, D transacts interstate commerce
for an insurer, but D did not obtain a 1033 waiver that would allow them to do so. D is
subject to criminal penalties, including:—ANSWER--A fine and imprisonment for up to 5
years
, Under 18 USC 1033-1034, interstate commerce means business done in any of the following
jurisdictions, except:—ANSWER--Mexico
Rates that cannot be used until the Department or Division of Insurance approves them are
referred to as:—ANSWER--Prior approval rates
Which insurance company department determines the probability of loss and determines
premium rates?—ANSWER--Actuarial Department
The possibility of a loss is known as:—ANSWER--A risk
A state that requires the Commissioner of Insurance to determine that a company's rates are
appropriate before the rates are made effective uses which type of rating approval
method?—ANSWER--Prior Approval
Taxable corporate dividends are received by the shareholders of which type of insurer?—
ANSWER--Stock Insurer
What is the amount charged for a particular unit of insurance?—ANSWER--the rate
Gambling is considered which of the following types of risk?—ANSWER--Speculative
An electrical fire starts in an insured's garage and ignites gasoline leaking from gas cans
stored nearby, causing a partial loss to the garage. The gas cans are known as:—ANSWER--
Physical hazards
Which of the following is least likely to be a factor when determining the eligibility of a
person for property insurance?—ANSWER--Whether the premium will be paid in full or
billed to the insured
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
Answers 100% PASS
Groups that want insurance coverage for their liability risks associated with theme parks
and go-karts could obtain this coverage from which insurer?—ANSWER--Risk Retention
Group
In a reciprocal insurance company, the exchange of insurance is effected through:—
ANSWER--An attorney-in-fact
Which of the following is an example of a physical hazard?—ANSWER--The storage of
flammables near a furnace
Which of the following is correct about a stock insurance company?—ANSWER--A stock
insurance company is run by officers and directors and has a stated amount of capital stock
owned by stockholders (a stock insurance company is owned by its stockholders)
Where can you find insurance coverage after being rejected by voluntary market insurers?—
ANSWER--Residual Market
D was convicted of a felony involving breach of trust. Later, D transacts interstate commerce
for an insurer, but D did not obtain a 1033 waiver that would allow them to do so. D is
subject to criminal penalties, including:—ANSWER--A fine and imprisonment for up to 5
years
, Under 18 USC 1033-1034, interstate commerce means business done in any of the following
jurisdictions, except:—ANSWER--Mexico
Rates that cannot be used until the Department or Division of Insurance approves them are
referred to as:—ANSWER--Prior approval rates
Which insurance company department determines the probability of loss and determines
premium rates?—ANSWER--Actuarial Department
The possibility of a loss is known as:—ANSWER--A risk
A state that requires the Commissioner of Insurance to determine that a company's rates are
appropriate before the rates are made effective uses which type of rating approval
method?—ANSWER--Prior Approval
Taxable corporate dividends are received by the shareholders of which type of insurer?—
ANSWER--Stock Insurer
What is the amount charged for a particular unit of insurance?—ANSWER--the rate
Gambling is considered which of the following types of risk?—ANSWER--Speculative
An electrical fire starts in an insured's garage and ignites gasoline leaking from gas cans
stored nearby, causing a partial loss to the garage. The gas cans are known as:—ANSWER--
Physical hazards
Which of the following is least likely to be a factor when determining the eligibility of a
person for property insurance?—ANSWER--Whether the premium will be paid in full or
billed to the insured
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
