NY Personal Lines Insurance FINAL EXAM
STUDY GUIDE 2026/2027 ACCURATE
QUESTIONS WITH CORRECT DETAILED
ANSWERS || 100% GUARANTEED PASS
<NEWEST VERSION>
1. Insurance - ANSWER ✔ Insurance transfers the risk of loss from an
individual or business entity to an insurance company, which in turn spreads
the costs of unexpected losses to many individuals.
2. Agent/Producer - ANSWER ✔ A person who acts for another person or
entity known as the principal with regard to contractual arrangements with
third parties; a legal representative of an insurance company.
3. Agent/Agency Contract - ANSWER ✔ A contract that is held between an
insurer and an agent/producer containing the express (written) authority
given to the agent/producer, outlining the duties and responsibilities to the
principal.
4. Applicant (proposed insured) - ANSWER ✔ A person who requests or seeks
insurance from an insurer.
5. Beneficiary - ANSWER ✔ The person who receives the benefits from the
policy of insurance policy.
,6. Insurance Policy - ANSWER ✔ a contract between a policyowner and/or
insured and an insurance company which agrees to pay the insured or
beneficiary for loss caused by specific events
7. Domestic Insurer - ANSWER ✔ An insurance company that is incorporated
in this state
8. Foreign Insurer - ANSWER ✔ An insurance company that is incorporated
outside this state
9. Alien Insurer - ANSWER ✔ An insurance company that is incorporated
outside this country
10.Exclusive/Captive Agent - ANSWER ✔ An agent who represents only one
company and is compensated by comissions
11.Express Authority - ANSWER ✔ The Authority Granted to an agent by
means of the agents written contract
12.Implied Authority - ANSWER ✔ 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
13.Apparent Authority - ANSWER ✔ the appearance or the assumption of
authority based on the actions, words, or deeds of the principal or because of
circumstances the principal created.
,14.Fiduciary - ANSWER ✔ An agent/broker who handles insurers funds in a
trust capacity.
15.Consideration - ANSWER ✔ the binding force in a contract that requires
something of value to be exchanged
16.Adhesion - ANSWER ✔ a contract that is offered on a take it or leave it
basis by an insurer in which the insureds only option is to accept or reject the
contract. Any ambiguities in the contract will be settled in favor of the
insured
17.Premium - ANSWER ✔ the money paid to the insurance company for the
policy of insurance.
18.Risk - ANSWER ✔ The uncertainty or chance of loss occurring.
19.All of the following are correct for excess lines carriers EXCEPT -
ANSWER ✔ they offer better contracts at lower rates.
20.Which of the following is one of the ways the Gramm-Leach Bliley Act
affects the insurance industry? - ANSWER ✔ It establishes which insurance
products banks and bank subsidiaries may provide as principal.
21.Which of the following is one of the objectives of the Terrorism Risk
Insurance Act of 2002? - ANSWER ✔ It limits the exposure of individual
insurers and the insurance industry as a whole.
, 22.Which of the following ways did the Violent Crime Control and Law
Enforcement Act expand federal laws? - ANSWER ✔ It prohibited anyone
in insurance convicted on a state or federal felony involving dishonesty or
breach of trust without a consent waiver from the Commissioner.
23.What does the abandonment condition state? - ANSWER ✔ It prevents the
insured from abandoning property before being reimbursed.
24.Per Occurrence - ANSWER ✔ A sublimit in a liability policy that puts a
ceiling on the payment for all claims that arise from a single
accident/occurrence
25.Per person - ANSWER ✔ The maximum amount available for payment of
bodily injury to a single person in an accident, regardless of the policy limit
stated in the policy for bodily injury claims.
26.Per project, per Location - ANSWER ✔ Umbrella or excess insurers may
apply the aggregate limit of general liability on a per location or per project
basis
27.Aggregated limit - ANSWER ✔ The max limit of coverage available under
liability policy during a policy year regardless of the number of claims made
or the number of accidents that occur
28.Sublimits - ANSWER ✔ Are separate coverage limits for specific exposure
that are less than the overall policy limits
29.Split Limits - ANSWER ✔ Are separately stated limits of liability for
different coverages
STUDY GUIDE 2026/2027 ACCURATE
QUESTIONS WITH CORRECT DETAILED
ANSWERS || 100% GUARANTEED PASS
<NEWEST VERSION>
1. Insurance - ANSWER ✔ Insurance transfers the risk of loss from an
individual or business entity to an insurance company, which in turn spreads
the costs of unexpected losses to many individuals.
2. Agent/Producer - ANSWER ✔ A person who acts for another person or
entity known as the principal with regard to contractual arrangements with
third parties; a legal representative of an insurance company.
3. Agent/Agency Contract - ANSWER ✔ A contract that is held between an
insurer and an agent/producer containing the express (written) authority
given to the agent/producer, outlining the duties and responsibilities to the
principal.
4. Applicant (proposed insured) - ANSWER ✔ A person who requests or seeks
insurance from an insurer.
5. Beneficiary - ANSWER ✔ The person who receives the benefits from the
policy of insurance policy.
,6. Insurance Policy - ANSWER ✔ a contract between a policyowner and/or
insured and an insurance company which agrees to pay the insured or
beneficiary for loss caused by specific events
7. Domestic Insurer - ANSWER ✔ An insurance company that is incorporated
in this state
8. Foreign Insurer - ANSWER ✔ An insurance company that is incorporated
outside this state
9. Alien Insurer - ANSWER ✔ An insurance company that is incorporated
outside this country
10.Exclusive/Captive Agent - ANSWER ✔ An agent who represents only one
company and is compensated by comissions
11.Express Authority - ANSWER ✔ The Authority Granted to an agent by
means of the agents written contract
12.Implied Authority - ANSWER ✔ 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
13.Apparent Authority - ANSWER ✔ the appearance or the assumption of
authority based on the actions, words, or deeds of the principal or because of
circumstances the principal created.
,14.Fiduciary - ANSWER ✔ An agent/broker who handles insurers funds in a
trust capacity.
15.Consideration - ANSWER ✔ the binding force in a contract that requires
something of value to be exchanged
16.Adhesion - ANSWER ✔ a contract that is offered on a take it or leave it
basis by an insurer in which the insureds only option is to accept or reject the
contract. Any ambiguities in the contract will be settled in favor of the
insured
17.Premium - ANSWER ✔ the money paid to the insurance company for the
policy of insurance.
18.Risk - ANSWER ✔ The uncertainty or chance of loss occurring.
19.All of the following are correct for excess lines carriers EXCEPT -
ANSWER ✔ they offer better contracts at lower rates.
20.Which of the following is one of the ways the Gramm-Leach Bliley Act
affects the insurance industry? - ANSWER ✔ It establishes which insurance
products banks and bank subsidiaries may provide as principal.
21.Which of the following is one of the objectives of the Terrorism Risk
Insurance Act of 2002? - ANSWER ✔ It limits the exposure of individual
insurers and the insurance industry as a whole.
, 22.Which of the following ways did the Violent Crime Control and Law
Enforcement Act expand federal laws? - ANSWER ✔ It prohibited anyone
in insurance convicted on a state or federal felony involving dishonesty or
breach of trust without a consent waiver from the Commissioner.
23.What does the abandonment condition state? - ANSWER ✔ It prevents the
insured from abandoning property before being reimbursed.
24.Per Occurrence - ANSWER ✔ A sublimit in a liability policy that puts a
ceiling on the payment for all claims that arise from a single
accident/occurrence
25.Per person - ANSWER ✔ The maximum amount available for payment of
bodily injury to a single person in an accident, regardless of the policy limit
stated in the policy for bodily injury claims.
26.Per project, per Location - ANSWER ✔ Umbrella or excess insurers may
apply the aggregate limit of general liability on a per location or per project
basis
27.Aggregated limit - ANSWER ✔ The max limit of coverage available under
liability policy during a policy year regardless of the number of claims made
or the number of accidents that occur
28.Sublimits - ANSWER ✔ Are separate coverage limits for specific exposure
that are less than the overall policy limits
29.Split Limits - ANSWER ✔ Are separately stated limits of liability for
different coverages
