NYS Insurance Licensing Exam Latest
2023 Graded A
insurance transfers ✔✔the risk of an loss for an individual or business to an insurance company
which spreads out the costs to many individuals
agency contract ✔✔a contract that is held between insurer and an agent/producer containing the
expressed authority given to the agent/producer, and the duties/responsibilities to the principal,
any agent in violation of the agency contract may be held personally liable to the insurer
agent ✔✔legal representative of a an insurance company that acts for another person or entity
known as the principal with regard to contractual arrangements
beneficiary ✔✔receives benefits from the insurance
death benefit ✔✔the amount paid when a claim is issued against policy of insurance
insurance policy ✔✔a contact b/w insured and insurance company that agrees to pay the insured
in the event of unforseen events caused by specific events
, risk ✔✔is the uncertainty or chance of loss occurring only two types of risks exist which are
speculative and pure and only one is insurable
pure risk ✔✔is the the certainty that loss or no change will occur with no financial gain to be
sought only this type of risk is insurable
speculative ✔✔the type that may either lead to loss or gain. example gambling. these are NOT
insurable
exposure ✔✔the unit of measure used to determine the premiums for insurance coverage
hazards ✔✔broken into 2 subtypes (physical, moral, morale); conditions that increase the
probability of the insured to experience a loss
physical hazard ✔✔hazards arising from material, structural, and operational features
moral hazard ✔✔hazards to applicants that may lie or provide fraudulent information to
insurance companies
2023 Graded A
insurance transfers ✔✔the risk of an loss for an individual or business to an insurance company
which spreads out the costs to many individuals
agency contract ✔✔a contract that is held between insurer and an agent/producer containing the
expressed authority given to the agent/producer, and the duties/responsibilities to the principal,
any agent in violation of the agency contract may be held personally liable to the insurer
agent ✔✔legal representative of a an insurance company that acts for another person or entity
known as the principal with regard to contractual arrangements
beneficiary ✔✔receives benefits from the insurance
death benefit ✔✔the amount paid when a claim is issued against policy of insurance
insurance policy ✔✔a contact b/w insured and insurance company that agrees to pay the insured
in the event of unforseen events caused by specific events
, risk ✔✔is the uncertainty or chance of loss occurring only two types of risks exist which are
speculative and pure and only one is insurable
pure risk ✔✔is the the certainty that loss or no change will occur with no financial gain to be
sought only this type of risk is insurable
speculative ✔✔the type that may either lead to loss or gain. example gambling. these are NOT
insurable
exposure ✔✔the unit of measure used to determine the premiums for insurance coverage
hazards ✔✔broken into 2 subtypes (physical, moral, morale); conditions that increase the
probability of the insured to experience a loss
physical hazard ✔✔hazards arising from material, structural, and operational features
moral hazard ✔✔hazards to applicants that may lie or provide fraudulent information to
insurance companies
