INSURANCE EXAM QUESTIONS

PDF Download

INSURANCE EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -40 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Risk Pooling

Answer:

The spreading of financial risk evenly among a large number of contributors to the program

Question 2: Loss

Answer:

When someone with insurance endures a negative outcome, such as injury or theft, and expects payment from the insurance company to compensate them

Question 3: Risk

Answer:

A situation involving exposure to danger, harm, or loss

Question 4: Homeowners Insurance

Answer:

A form of property insurance, available to property owners, that covers losses to the physical structure as well as to their personal property and protects the insured person from liability claims

Question 5: Liability Coverage

Answer:

Auto insurance that protects you against medical costs for the bodily injury of others and damages to the property of others if you are at fault in an accident

Question 6: Extended Warranty

Answer:

An additional form of protection that can be purchased to extend/enhance a manufacturer's warranty on consumer goods, like phones and electronics

Question 7: Coverage Limit

Answer:

The maximum amount an insurance company will pay if you file a claim

Question 8: Insuring Agreement

Answer:

The main part of a car insurance policy, which clearly spells out every point of what coverage you receive for the premium you're paying

Question 9: Out of Pocket Maximum

Answer:

The maximum amount of money you will have to spend on health care in a year, after which the insurance company agrees to cover all costs

Question 10: HSA

Answer:

Health savings account. An account where you contribute pre-tax dollars for expected medical expenses

Question 11: Insurance Fraud

Answer:

An act on the part of either the buyer or seller of an insurance contract in an attempt to gain money illegally

Question 12: Social Security

Answer:

A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals

Question 13: Deductible

Answer:

The amount of money you agree to pay towards your losses before your insurance coverage will begin paying

Question 14: Uninsured/Underinsured Coverage

Answer:

Auto insurance that protects you against another driver not having enough coverage to pay the entirety of your losses

Question 15: Quote

Answer:

An estimate of what premium you would pay for a certain insurance coverage plan

Question 16: Collision Coverage

Answer:

Auto insurance that protects you against costs to repair your own vehicle after a crash

Question 17: Premium

Answer:

The specified amount of payment required periodically by an insurer to provide coverage under a plan for a defined period of time

Question 18: PPO

Answer:

Preferred provider organization. A health insurance plan in which providers agree to deliver services for discount fees; patients can go to any provider, but using nonparticipating providers results in higher costs to the patient.

Question 19: Insurance Agent

Answer:

An employee of an insurance company who sells insurance policies and provides customer service

Question 20: Life Insurance

Answer:

Insurance paid to named beneficiaries when the insured person dies

Question 21: Conditions of the Policy

Answer:

The portion of a car insurance policy that spells out the details for how to make a claim, what information you must have, how much time you have, and how to cancel your policy

Question 22: Minimum Liability Limit

Answer:

The lowest amount of auto insurance coverage one can have to be legally allowed to drive in each state

Question 23: Medicaid

Answer:

A federal and state assistance program that pays for health care services for people who cannot afford them

Question 24: Renters Insurance

Answer:

A form of property insurance, available to renters, that covers losses to their personal property and protects the insured person from liability claims

Question 25: Underwriter

Answer:

An employee of an insurance company who evaluates an individual's risk factors and assigns premium amounts

Question 26: Declaration Page

Answer:

The page of a car insurance policy which includes a summary description of the insurance coverage provided and gives the maximum dollar limit the insurer will pay for a claim under each coverage