Practice test

Insurance Practice Exam 1

Free 25-question insurance practice exam covering life and health, property and casualty, and insurance regulations basics. Instant scoring with explanations.

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

Question 1

In a life insurance contract, who is the person whose death triggers payment of the death benefit?

Question 2

Which type of life insurance provides protection for a specified period and pays a benefit only if the insured dies during that term?

Question 3

What feature distinguishes whole life insurance from term life insurance?

Question 4

In property insurance, what is a peril?

Question 5

On a homeowners policy, the dollar amount the insured pays out of pocket before the insurer pays is called the:

Question 6

Which homeowners form insures the dwelling on an open-perils (all-risk) basis and personal property on a named-perils basis?

Question 7

The state official who oversees the insurance industry and enforces insurance law is generally called the:

Question 8

A person who sells, solicits, or negotiates insurance on behalf of an insurer is licensed as a:

Question 9

The duty a producer owes to handle client funds and act in the client's interest is best described as a:

Question 10

The named beneficiary who receives the death benefit if living is the:

Question 11

Which part of a personal auto policy pays for bodily injury and property damage the insured causes to others?

Question 12

The period after a life or health premium due date during which the policy stays in force even though the premium is unpaid is the:

Question 13

Knowingly making a false statement on an insurance application to obtain coverage or a lower rate is an example of:

Question 14

The principle that insurance should restore the insured to the same financial position as before a loss, with no profit, is called:

Question 15

An annuity that begins income payments immediately after a single premium is paid is a:

Question 16

Comprehensive (other-than-collision) auto coverage typically pays for losses caused by:

Question 17

Most states require producers to complete a set number of continuing education hours in order to:

Question 18

Which life insurance policy provision lets the owner examine the policy and return it for a full premium refund within a set number of days?

Question 19

In a named-perils policy, a loss is covered only if it is caused by a peril that is:

Question 20

An insurer doing business in a state but organized under the laws of a different state is considered a/an:

Question 21

Health insurance that replaces a portion of income when the insured cannot work because of illness or injury is:

Question 22

Liability limits shown as 100/300/50 mean the bodily injury limit per person is:

Question 23

Misleading a consumer about the terms or benefits of a policy to make a sale is an example of:

Question 24

In a life insurance policy, the person or entity that owns and controls the contract is the:

Question 25

An applicant's intentional withholding of a material fact the insurer would want to know is called:

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