Practice test

Insurance Practice Exam 2

Free insurance pre-license practice test with 25 questions on life, health, P&C coverages, and producer rules. Get your score and per-question explanations.

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

Question 1

1

The clause that prevents an insurer from contesting a life policy for misstatements after it has been in force for a set period (usually two years) is the:

Question 2

2

Which universal life feature lets the policyowner adjust premium payments and the death benefit within limits?

Question 3

3

Which homeowners form is designed for tenants and covers personal property but not the building?

Question 4

4

On most homeowners policies, coverage for personal property is settled on what basis unless an endorsement is added?

Question 5

5

A producer who represents the insurance company and acts on its behalf is functioning as a/an:

Question 6

6

The type of agent authority that is written into the agency contract is called:

Question 7

7

What does an annuity's accumulation period refer to?

Question 8

8

Collision coverage on a personal auto policy pays for:

Question 9

9

Charging different premiums to people in the same class and hazard with no actuarial justification is called unfair:

Question 10

10

The settlement option that pays the beneficiary equal installments until the death benefit and interest are exhausted is the:

Question 11

11

Uninsured motorist coverage on an auto policy protects the insured when:

Question 12

12

Offering a consumer something of value not stated in the policy as an inducement to buy is the prohibited practice of:

Question 13

13

Which rider pays an additional benefit, often doubling the face amount, if the insured dies in an accident?

Question 14

14

Bodily injury liability and property damage liability are the two main parts of:

Question 15

15

A document a producer gives the insurer summarizing an applicant's information to begin the underwriting process is the:

Question 16

16

Term life insurance whose death benefit decreases over time, often used to cover a mortgage, is called:

Question 17

17

The maximum amount an insurer will pay for a covered loss is the policy's:

Question 18

18

Replacing one life insurance policy with another, which triggers special disclosure rules, is regulated to protect the:

Question 19

19

Health insurance that pays a fixed daily or monthly amount for nursing home or in-home custodial care is:

Question 20

20

A hazard that arises from a person's carelessness or indifference to loss is a:

Question 21

21

Only which type of risk is insurable?

Question 22

22

The life insurance nonforfeiture option that uses the cash value to buy a smaller, fully paid-up policy of the same type is:

Question 23

23

Which coverage on a homeowners policy pays for medical bills of a guest injured on the premises regardless of fault?

Question 24

24

Before coverage can begin, the applicant must generally provide the first premium and the insurer must:

Question 25

25

A temporary agreement giving immediate coverage until the formal policy is issued is called a:

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