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General Insurance Essentials - C81 + C82 EXAM 2026
Actual Complete Real Verified Exam Questions &
Correct Answers | Already Graded A+ | Newest
Exam!!!
What is the duty of a risk manager? - Answer-Identifying
loss exposures
Which type of professional would be responsible for
educating other corporate managers about risk and acting
as a resource to other managers, in much the same way
as a broker would for a small business client? - Answer-
Risk Manager
A small, popular coffee shop is severely damaged by
fire.Which party has insurable interest in the coffee shop?
- Answer-bank that holds a mortgage on the building in
which the coffee shop is located
How can insurance be an aid to credit? - Answer-Because
it is virtually impossible to obtain credit without having
insurance on the item concerned
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How can insurance be an aid to security? - Answer-By
substituting a certain premium payment in place of an
uncertain loss payment
How can risk be spread? - Answer-By volume, diversity of
risks, and diversity of location
What does a broker do? - Answer-Acts on behalf of an
insured in placing business with insurance companies
What does it mean to indemnify? - Answer-To provide
compensation for loss or expenses incurred
What is the premium? - Answer-The price of insurance
protection for a specified risk for a specified period of time
What is the specific risk covered by life insurance? -
Answer-The death of the insured
What type of insurance covers goods in transit on land? -
Answer-Inland transportation
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What concept upholds the principle of indemnity? -
Answer-Insurable Interest
What 3 departments are unique to insurance companies?
- Answer-Actuarial, claims, and underwriting
What is facultative reinsurance? - Answer-Reinsurance of
risks on an individual case-by-case basis subject to
acceptance or rejection by the insurer (the opposite of
Treaty reinsurance)
What is subscribed capital? - Answer-The amount of stock
sold by a corporation
What is the basic task of an underwriting department? -
Answer-Select risks to insure
What is the term used when an insurance company re-
insures its liability with another insurance company? -
Answer-Cession
What is treaty insurance? - Answer-Reinsurance in which
an agreement between the insurer and the reinsurer
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provides for automatic reinsurance without the insurer
having to submit every risk to the reinsurer.
(opposite of faculative reinsurance)
What is underwriting profit? - Answer-The amount of
money an insurance company gains as a result of its
insurance operations
What is a hazard? - Answer-A condition that may cause a
loss to be more severe
What is a peril? - Answer-An event that may give rise to a
loss
What is the immediate and effective action in a chain of
circumstances that leads naturally and directly to the loss?
- Answer-Proximate cause
What is the proximate cause of a loss? - Answer-The
immediate and effective cause of the loss or damage
General Insurance Essentials - C81 + C82 EXAM 2026
Actual Complete Real Verified Exam Questions &
Correct Answers | Already Graded A+ | Newest
Exam!!!
What is the duty of a risk manager? - Answer-Identifying
loss exposures
Which type of professional would be responsible for
educating other corporate managers about risk and acting
as a resource to other managers, in much the same way
as a broker would for a small business client? - Answer-
Risk Manager
A small, popular coffee shop is severely damaged by
fire.Which party has insurable interest in the coffee shop?
- Answer-bank that holds a mortgage on the building in
which the coffee shop is located
How can insurance be an aid to credit? - Answer-Because
it is virtually impossible to obtain credit without having
insurance on the item concerned
,2|Page
How can insurance be an aid to security? - Answer-By
substituting a certain premium payment in place of an
uncertain loss payment
How can risk be spread? - Answer-By volume, diversity of
risks, and diversity of location
What does a broker do? - Answer-Acts on behalf of an
insured in placing business with insurance companies
What does it mean to indemnify? - Answer-To provide
compensation for loss or expenses incurred
What is the premium? - Answer-The price of insurance
protection for a specified risk for a specified period of time
What is the specific risk covered by life insurance? -
Answer-The death of the insured
What type of insurance covers goods in transit on land? -
Answer-Inland transportation
,3|Page
What concept upholds the principle of indemnity? -
Answer-Insurable Interest
What 3 departments are unique to insurance companies?
- Answer-Actuarial, claims, and underwriting
What is facultative reinsurance? - Answer-Reinsurance of
risks on an individual case-by-case basis subject to
acceptance or rejection by the insurer (the opposite of
Treaty reinsurance)
What is subscribed capital? - Answer-The amount of stock
sold by a corporation
What is the basic task of an underwriting department? -
Answer-Select risks to insure
What is the term used when an insurance company re-
insures its liability with another insurance company? -
Answer-Cession
What is treaty insurance? - Answer-Reinsurance in which
an agreement between the insurer and the reinsurer
, 4|Page
provides for automatic reinsurance without the insurer
having to submit every risk to the reinsurer.
(opposite of faculative reinsurance)
What is underwriting profit? - Answer-The amount of
money an insurance company gains as a result of its
insurance operations
What is a hazard? - Answer-A condition that may cause a
loss to be more severe
What is a peril? - Answer-An event that may give rise to a
loss
What is the immediate and effective action in a chain of
circumstances that leads naturally and directly to the loss?
- Answer-Proximate cause
What is the proximate cause of a loss? - Answer-The
immediate and effective cause of the loss or damage
