US Insurance Alabama Test 2

Insurance » Category

Author: TestGru Team (Education Specialist)

20 questions · All questions on one page

Prepared with up-to-date content

Insurance — Test 2 (Alabama) Professional (Insurance, USA) USA — Alabama State Insurance License — USA

What is this test? for Insurance (Property/Casualty, Life/Health) license, USA — Professional (Insurance, USA) level, USA — Alabama.
For adults preparing for Insurance license in the USA
Section: Insurance — Test 2 (Alabama) · Education: Professional (Adult) · Part: Insurance — Test 2 (Alabama) · Country: USA · Region: USA — Alabama

A regular habit of taking practice tests makes learned information stick and is one of the most important factors directly affecting exam success.

This test will help you gauge your knowledge in your field and manage your exam prep more efficiently.

By solving this test of 20 questions, you can both test your knowledge and identify the topics you need to improve.

Question 1

What is a copay?

A) fixed visit fee

B) premium

C) payout

D) deductible

Question 2

What is liability coverage?

A) theft of yours

B) medical for you

C) pays others' damage you cause

D) your car repairs

Question 3

What is a premium?

A) claim payout

B) deductible

C) regular insurance payment

D) copay

Question 4

What is a deductible?

A) payout

B) monthly bill

C) amount paid before coverage

D) copay

Question 5

What is collision coverage?

A) your car crash repairs

B) theft

C) liability

D) flood

Question 6

What is comprehensive coverage?

A) health

B) non-crash damage (theft, hail)

C) liability

D) collision

Question 7

What is term life insurance?

A) no expiry

B) lifetime

C) investment

D) coverage for a set period

Question 8

What is whole life insurance?

A) yearly

B) no payout

C) lifetime plus cash value

D) term only

Question 9

What is a beneficiary?

A) person receiving payout

B) agent

C) adjuster

D) lender

Question 10

What is underwriting?

A) risk assessment for policies

B) selling

C) claim filing

D) canceling

Question 11

What is an exclusion?

A) deductible

B) premium

C) what policy does NOT cover

D) covered item

Question 12

What is a rider?

A) cancel

B) basic policy

C) claim

D) added coverage option

Question 13

What is coinsurance?

A) shared percent after deductible

B) premium

C) copay

D) full coverage

Question 14

What is an out-of-pocket max?

A) yearly payment ceiling

B) premium

C) unlimited

D) deductible

Question 15

What is HMO?

A) no referrals

B) any doctor

C) PPO

D) network HMO care plan

Question 16

What is PPO?

A) no coverage

B) free care

C) HMO only

D) flexible network plan

Question 17

What is flood insurance?

A) separate NFIP policy

B) homeowners covers

C) auto covers

D) no need

Question 18

What is an adjuster?

A) assesses claim payouts

B) cancels

C) collects premiums

D) sells policies

Question 19

What is subrogation?

A) refunding

B) canceling

C) doubling payout

D) insurer recovering from at-fault party

Question 20

What is actual cash value?

A) new price

B) replacement minus depreciation

C) purchase price

D) agreed value

US Insurance Alabama Test 2

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