Practice test

Free Insurance Licensing Practice Test

Take our free insurance licensing practice test with 20 questions covering life and health, property and casualty, and regulations. See your score instantly.

These questions are for study practice only and are not official exam questions.

Question 1

1

State insurance guaranty associations primarily exist to:

Question 2

2

In a standard homeowners insurance policy, which of the following perils is typically EXCLUDED from coverage?

Question 3

3

When a producer replaces an existing life insurance policy, which regulatory requirement is typically triggered?

Question 4

4

Universal life insurance differs from whole life insurance primarily because universal life:

Question 5

5

Which of the following best describes the 'accidental death benefit' rider added to a life insurance policy?

Question 6

6

Which annuity settlement option guarantees payments for a specified period and continues to the beneficiary if the annuitant dies before the period ends?

Question 7

7

The principle of 'utmost good faith' (uberrimae fidei) in insurance requires that:

Question 8

8

What is an annuity primarily used for in financial planning?

Question 9

9

Under the nonforfeiture options available in a whole life policy, which option allows the policyholder to use accumulated cash value to purchase a paid-up policy for a reduced face amount?

Question 10

10

The principle of subrogation in property insurance allows the insurer to:

Question 11

11

In property insurance, the 'other insurance' clause prevents the insured from collecting more than the actual loss when multiple policies cover the same property. Which method divides the loss proportionally based on each policy's limit relative to the total insurance in force?

Question 12

12

What is 'rebating' in the context of insurance sales practices?

Question 13

13

A producer who acts on behalf of the insured rather than the insurance company is best described as a(n):

Question 14

14

Which type of life insurance provides coverage for a specific period of time and pays a death benefit only if the insured dies during that period?

Question 15

15

The doctrine of 'estoppel' prevents an insurer from:

Question 16

16

What does the term 'insurable interest' mean in the context of life insurance?

Question 17

17

A life insurance policy's 'free look' period allows the policyholder to:

Question 18

18

Comprehensive auto insurance coverage pays for vehicle damage caused by:

Question 19

19

A waiver of premium rider on a life insurance policy means the insurer will:

Question 20

20

Which government body has primary regulatory authority over the insurance industry in the United States?

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