US Insurance State Law Advanced Test 1

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Author: TestGru Team (Education Specialist)

20 questions · All questions on one page

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Insurance — Test 1 (State Law Advanced) Professional (Insurance, USA) USA State Insurance License — USA

What is this test? for Insurance (Property/Casualty, Life/Health) license, USA — Professional (Insurance, USA) level, USA.
For adults preparing for Insurance license in the USA
Section: Insurance — Test 1 (State Law Advanced) · Education: Professional (Adult) · Part: Insurance — Test 1 (State Law Advanced) · Country: USA

Law is the body of rules that maintains social order and defines individual rights and obligations.

This test is designed to measure your knowledge of fundamental legal concepts and various branches of law.

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 premium?

A) claim payout

B) regular insurance payment

C) copay

D) deductible

Question 2

What is a deductible?

A) amount paid before coverage

B) monthly bill

C) payout

D) copay

Question 3

What is a copay?

A) payout

B) fixed visit fee

C) deductible

D) premium

Question 4

What is liability coverage?

A) pays others' damage you cause

B) medical for you

C) your car repairs

D) theft of yours

Question 5

What is collision coverage?

A) your car crash repairs

B) flood

C) theft

D) liability

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) coverage for a set period

D) investment

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) agent

B) lender

C) person receiving payout

D) adjuster

Question 10

What is underwriting?

A) selling

B) canceling

C) claim filing

D) risk assessment for policies

Question 11

What is an exclusion?

A) covered item

B) what policy does NOT cover

C) deductible

D) premium

Question 12

What is a rider?

A) added coverage option

B) cancel

C) basic policy

D) claim

Question 13

What is coinsurance?

A) full coverage

B) copay

C) premium

D) shared percent after deductible

Question 14

What is an out-of-pocket max?

A) yearly payment ceiling

B) deductible

C) unlimited

D) premium

Question 15

What is HMO?

A) no referrals

B) PPO

C) any doctor

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) no need

C) auto covers

D) homeowners covers

Question 18

What is an adjuster?

A) collects premiums

B) cancels

C) assesses claim payouts

D) sells policies

Question 19

What is subrogation?

A) doubling payout

B) refunding

C) insurer recovering from at-fault party

D) canceling

Question 20

What is actual cash value?

A) agreed value

B) replacement minus depreciation

C) new price

D) purchase price

US Insurance State Law Advanced Test 1

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