General Insurance Essentials -
C81 + C82 EXAM (Updated 2026)
Questions & Answers | Latest
Already Graded A+
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
What cause of loss would be insured? - 🧠 ANSWER ✔✔Proximate cause
Which type of risk can be insured? - 🧠 ANSWER ✔✔Pure risk
A firm's decision to change insurers or brokers or accept policy renewal
costs usually requires approval by which of the following? - 🧠 ANSWER
✔✔The firm's senior management
All costs associated with managing pure risk are known as which of the
following? - 🧠 ANSWER ✔✔Cost of risk
Members of an organization are subject to the possibility of illness,
disability, or premature death. What category is this subject of loss? - 🧠
ANSWER ✔✔Human assets
What is a consequence of not using a risk management approach to setting
up insurance for a client? - 🧠 ANSWER ✔✔A major loss may not be
covered
,What is a simple definition of earnings? - 🧠 ANSWER ✔✔The difference
between revenues and expenses—the profits (net income) of a business
What method allows a broker to identify and analyze the risks an
organization faces? - 🧠 ANSWER ✔✔Risk Management
What is a risk management technique whereby the risk of loss is prevented
by not engaging in activities that present the risk? - 🧠 ANSWER
✔✔Avoidance
What is both a pre-loss and a post-loss objective of risk management? - 🧠
ANSWER ✔✔Social Responsibility
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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 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
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
C81 + C82 EXAM (Updated 2026)
Questions & Answers | Latest
Already Graded A+
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
What cause of loss would be insured? - 🧠 ANSWER ✔✔Proximate cause
Which type of risk can be insured? - 🧠 ANSWER ✔✔Pure risk
A firm's decision to change insurers or brokers or accept policy renewal
costs usually requires approval by which of the following? - 🧠 ANSWER
✔✔The firm's senior management
All costs associated with managing pure risk are known as which of the
following? - 🧠 ANSWER ✔✔Cost of risk
Members of an organization are subject to the possibility of illness,
disability, or premature death. What category is this subject of loss? - 🧠
ANSWER ✔✔Human assets
What is a consequence of not using a risk management approach to setting
up insurance for a client? - 🧠 ANSWER ✔✔A major loss may not be
covered
,What is a simple definition of earnings? - 🧠 ANSWER ✔✔The difference
between revenues and expenses—the profits (net income) of a business
What method allows a broker to identify and analyze the risks an
organization faces? - 🧠 ANSWER ✔✔Risk Management
What is a risk management technique whereby the risk of loss is prevented
by not engaging in activities that present the risk? - 🧠 ANSWER
✔✔Avoidance
What is both a pre-loss and a post-loss objective of risk management? - 🧠
ANSWER ✔✔Social Responsibility
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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 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
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
