#1
What is the purpose of an insurance license?
To sell real estate
To operate a restaurant
To sell insurance
To practice law
#2
Which type of insurance is typically regulated by state governments?
Health insurance
Auto insurance
Travel insurance
Pet insurance
#3
In insurance, what is a deductible?
The amount paid by the insured before the insurance coverage kicks in
The premium paid monthly
The maximum limit of coverage
The insurance agent's commission
#4
What is a key function of state insurance departments?
Enforcing traffic laws
Regulating environmental policies
Overseeing insurance licensing and compliance
Managing public transportation
#5
What is the purpose of an insurance policy's declarations page?
To list the names of the insurance company executives
To outline the coverage provided by the policy
To display premium payment options
To explain the claims process
#6
What is the primary purpose of an insurance policy's exclusions section?
To list the insured perils
To explain coverage limits
To specify situations not covered by the policy
To provide contact information for the insurance company
#7
Which regulatory body oversees insurance companies in the United States?
#8
What is a common requirement for obtaining an insurance license?
Owning a car
Being a U.S. citizen
Passing a licensing exam
Having a college degree
#9
What does E&O insurance stand for in the insurance industry?
Errors & Omissions insurance
Endorsements & Overdrafts insurance
Exclusions & Oaths insurance
Extraordinary & Outstanding insurance
#10
Which type of insurance is often required by landlords to protect against property damage caused by tenants?
Life insurance
Renters insurance
Homeowners insurance
Commercial property insurance
#11
What is the purpose of the National Flood Insurance Program (NFIP) in the United States?
To provide health insurance for flood victims
To regulate floodplain development
To offer flood insurance to property owners
To prevent floods
#12
What does the term 'indemnity' mean in the context of insurance?
Compensation for loss or damage
Insurance premium payment
Insurance policy expiration
Insurance coverage limit
#13
Which insurance product is designed to cover the costs associated with long-term care services?
Medicare
Disability insurance
Long-term care insurance
Dental insurance
#14
In insurance, what does the term 'underwriting' refer to?
Selling policies
Assessing risk and setting premiums
Handling claims
Advertising insurance products
#15
What is the purpose of a surety bond in the insurance industry?
To provide health coverage
To guarantee the performance of an obligation
To insure against property damage
To cover legal fees
#16
What is the purpose of a National Producer Number (NPN) in the insurance industry?
To identify insurance companies
To track insurance premiums
To uniquely identify insurance producers
To calculate insurance deductibles
#17
Which federal law regulates the privacy of consumer financial information in the insurance industry?
#18
In insurance, what does the term 'captive insurance company' refer to?
An insurance company with no restrictions
An insurance company owned by its insureds
An insurance company specializing in captives
An insurance company with unlimited coverage
#19
What is the primary purpose of a surplus lines insurance policy?
To cover routine medical expenses
To provide coverage for uninsurable risks
To insure against natural disasters
To offer life insurance coverage
#20
What is the purpose of the Financial Industry Regulatory Authority (FINRA) in the insurance industry?
To regulate insurance premiums
To oversee insurance agent licensing
To regulate securities firms and professionals
To set insurance coverage limits