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

What is an annuity primarily used for in financial planning?

Question 2

2

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

Question 3

3

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

Question 4

4

Which of the following activities requires an insurance license in most states?

Question 5

5

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

Question 6

6

Which homeowners coverage section pays for the policyholder's legal liability if a guest is injured on their property?

Question 7

7

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

Question 8

8

The incontestability clause in a life insurance policy generally prevents the insurer from voiding the policy after how long?

Question 9

9

Under a Health Maintenance Organization (HMO) plan, a member who wants to see a specialist typically must first:

Question 10

10

Auto insurance liability coverage pays for:

Question 11

11

A commercial general liability (CGL) policy is designed primarily to protect a business from:

Question 12

12

Which policy provision requires the insured to maintain insurance equal to a specified percentage of the property's value in order to receive full reimbursement for a partial loss?

Question 13

13

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 14

14

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

Question 15

15

Uninsured motorist (UM) coverage in an auto policy protects the insured when:

Question 16

16

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

Question 17

17

When a life insurance policy is surrendered for its cash value, which of the following tax consequences typically applies?

Question 18

18

Which type of life insurance builds cash value over time and remains in force for the insured's entire lifetime as long as premiums are paid?

Question 19

19

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

Question 20

20

What does 'actual cash value' (ACV) mean when settling a property insurance claim?

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