NYS & Casualty Broker Exam | study Guide
Property
, Insurance transfers the risk of loss from an individual or
What is insurance? business entity to an insurance company, which in turn
spreads the cost of unexpected losses to many individuals.
a person who acts for another person or entity known as the
Agent/Producer principal with regard to contractual arrangements with the
third parties; a legal representative of an insurance
company.
a contract that is held between an insurer and an
agent/producer, containing the expressed authority given
to the agent/producer, outlining the duties and
Agent/Agency Contract
responsibilities to the principal. If the agent is in violation of
the agency contract (or agreement), he or she may be
held personally liable to the insurer for breach of
contract.
Applicant/ Proposed Insured a person who requests or seeks insurance from an insurer.
Beneficiary the person who receives the benefits from the policy of insurance.
a contract between a policy owner (and/or) insured and
Insurance Policy
an insurance company which agrees to pay the insured or
the beneficiary for loss caused by specific events.
Insurer (principal) the company who issues a policy of insurance.
the person who is entitled to exercise the rights and
Policyowner
privileges in the policy who may or may not be insured.
Premium the money paid to the insurance company for the policy of insurance.
Risk is the uncertainty or chance of loss occurring. (2 types of risk)
Pure Risk situations that can ONLY result in a loss or no change.
Speculative Risk the opportunity for either loss or gain.
conditions or situations that increase the probability of an
Hazards
insured loss occurring. (3 types of hazards)
hazards arising from the material, structural, or operational
Physical Hazards
features of the risk, apart from the persons owning or
managing it.
Property
, Insurance transfers the risk of loss from an individual or
What is insurance? business entity to an insurance company, which in turn
spreads the cost of unexpected losses to many individuals.
a person who acts for another person or entity known as the
Agent/Producer principal with regard to contractual arrangements with the
third parties; a legal representative of an insurance
company.
a contract that is held between an insurer and an
agent/producer, containing the expressed authority given
to the agent/producer, outlining the duties and
Agent/Agency Contract
responsibilities to the principal. If the agent is in violation of
the agency contract (or agreement), he or she may be
held personally liable to the insurer for breach of
contract.
Applicant/ Proposed Insured a person who requests or seeks insurance from an insurer.
Beneficiary the person who receives the benefits from the policy of insurance.
a contract between a policy owner (and/or) insured and
Insurance Policy
an insurance company which agrees to pay the insured or
the beneficiary for loss caused by specific events.
Insurer (principal) the company who issues a policy of insurance.
the person who is entitled to exercise the rights and
Policyowner
privileges in the policy who may or may not be insured.
Premium the money paid to the insurance company for the policy of insurance.
Risk is the uncertainty or chance of loss occurring. (2 types of risk)
Pure Risk situations that can ONLY result in a loss or no change.
Speculative Risk the opportunity for either loss or gain.
conditions or situations that increase the probability of an
Hazards
insured loss occurring. (3 types of hazards)
hazards arising from the material, structural, or operational
Physical Hazards
features of the risk, apart from the persons owning or
managing it.
