NY Life Insurance Exam WITH QUESTION AND ACUTUAL
ANSWERS 2026!!
Pure Risk - ANSWERS✔️💫-A chance of loss or no loss, but no chance of gain.
Life Insurance ONLY deals in pure risk.
Speculative Risk - ANSWERS✔️💫-A chance of loss, no loss, or gain.
Ex: Gambling.
Insurance Definition - ANSWERS✔️💫-Transfer of Pure Risk to Insurance company in consideration for a
premium.
Risk - ANSWERS✔️💫-Chance at loss.
Exposure - ANSWERS✔️💫-Condition that could result in loss.
Hazard - ANSWERS✔️💫-Something that increases the chance of loss
To be insurable, _____________ - ANSWERS✔️💫-Losses must be calculable
Peril - ANSWERS✔️💫-Cause of loss
Ex: a fire
Law of Large Numbers - ANSWERS✔️💫-Allows insurers to predict claims more accurately.
, Applies to groups, not individuals.
The more people in a group, the more accurate the predictions.
Stock Insurer - ANSWERS✔️💫-may pay dividends to its shareholders (stockholders), but they may not be
guaranteed.
Reciprocal Insurance Company / Reciprocal Insurer - ANSWERS✔️💫-Managed by an attorney-in-fact.
Unincorporated association of individuals who insure each other.
Foreign Insurance Company - ANSWERS✔️💫-An insurance company doing business in a state other than
the one in which it is incorporated
Alien Insurance Company - ANSWERS✔️💫-An insurance company that operates in a country other than
the country in which it was organized.
Domestic Insurance Company - ANSWERS✔️💫-A company that resides and is incorporated under the
laws of the state in which its home office is located.
Who do producers represent? - ANSWERS✔️💫-Producers represent the Insurance Company, not the
insured.
Express Authority - ANSWERS✔️💫-The authority granted to an agent by means of the agent's written
contract.
Implied Authority - ANSWERS✔️💫-Authority that is not expressed or written into the contract, but which
the agent is assumed to have in order to transact the business of insurance for the principal.
ANSWERS 2026!!
Pure Risk - ANSWERS✔️💫-A chance of loss or no loss, but no chance of gain.
Life Insurance ONLY deals in pure risk.
Speculative Risk - ANSWERS✔️💫-A chance of loss, no loss, or gain.
Ex: Gambling.
Insurance Definition - ANSWERS✔️💫-Transfer of Pure Risk to Insurance company in consideration for a
premium.
Risk - ANSWERS✔️💫-Chance at loss.
Exposure - ANSWERS✔️💫-Condition that could result in loss.
Hazard - ANSWERS✔️💫-Something that increases the chance of loss
To be insurable, _____________ - ANSWERS✔️💫-Losses must be calculable
Peril - ANSWERS✔️💫-Cause of loss
Ex: a fire
Law of Large Numbers - ANSWERS✔️💫-Allows insurers to predict claims more accurately.
, Applies to groups, not individuals.
The more people in a group, the more accurate the predictions.
Stock Insurer - ANSWERS✔️💫-may pay dividends to its shareholders (stockholders), but they may not be
guaranteed.
Reciprocal Insurance Company / Reciprocal Insurer - ANSWERS✔️💫-Managed by an attorney-in-fact.
Unincorporated association of individuals who insure each other.
Foreign Insurance Company - ANSWERS✔️💫-An insurance company doing business in a state other than
the one in which it is incorporated
Alien Insurance Company - ANSWERS✔️💫-An insurance company that operates in a country other than
the country in which it was organized.
Domestic Insurance Company - ANSWERS✔️💫-A company that resides and is incorporated under the
laws of the state in which its home office is located.
Who do producers represent? - ANSWERS✔️💫-Producers represent the Insurance Company, not the
insured.
Express Authority - ANSWERS✔️💫-The authority granted to an agent by means of the agent's written
contract.
Implied Authority - ANSWERS✔️💫-Authority that is not expressed or written into the contract, but which
the agent is assumed to have in order to transact the business of insurance for the principal.
