#1
Which provision in an insurance policy allows the insured to transfer the rights of the policy to another person or entity?
Assignment
Indemnity
Subrogation
Estoppel
#2
What does the term 'subrogation' mean in insurance?
The insured's right to transfer policy rights
The insurer's right to sue a third party on behalf of the insured
The insurer's promise to compensate the insured for covered losses
The insurer's right to cancel the policy at any time
#3
Which of the following is NOT a typical exclusion in an insurance policy?
War
Natural disasters
Intentional acts by the insured
Medical expenses
#4
What is 'deductible' in an insurance policy?
The maximum amount the insurer will pay for a covered loss
The amount the insured must pay out of pocket before the insurer covers any losses
The percentage of covered expenses the insured must pay after reaching a certain limit
The period during which the insured can cancel the policy without penalty
#5
What does 'exclusion' mean in insurance policy terms?
A provision that limits the total amount the insurer will pay for covered losses
A list of specific perils or circumstances not covered by the policy
A period during which the insurer cannot cancel the policy
A provision that allows the insured to transfer policy rights to another person
#6
What does 'policy limit' refer to in insurance?
The maximum amount the insured can claim per year
The total amount the insurer will pay for all covered losses
The maximum amount the insurer will pay for a covered loss
The minimum coverage required by law
#7
Which type of insurance policy provides coverage for a specific period and pays a benefit only if the insured dies during that period?
Whole life insurance
Term life insurance
Universal life insurance
Variable life insurance
#8
In insurance, what does the term 'endorsement' refer to?
A document that modifies the terms of an insurance policy
The process of underwriting a policy
The cancellation of an insurance policy
The legal process to settle a claim
#9
What does the 'grace period' in an insurance policy refer to?
The period during which the insured can cancel the policy without penalty
The period during which the insured can reinstate a lapsed policy without undergoing underwriting
The period during which the insurer must pay a claim after it is filed
The period during which the insured can modify the coverage of the policy
#10
Which type of life insurance policy allows the policyholder to build cash value over time?
Term life insurance
Whole life insurance
Endowment life insurance
Universal life insurance
#11
What is 'coinsurance' in health insurance?
A policy provision that allows the insured to receive reimbursement for medical expenses
A type of insurance that covers the costs of prescription drugs
A provision that requires the insured to pay a percentage of medical costs after reaching a certain deductible
A provision that limits the total amount the insurer will pay for medical expenses
#12
Which type of life insurance provides a death benefit and an investment component that can potentially accumulate cash value?
Term life insurance
Whole life insurance
Universal life insurance
Variable life insurance
#13
Which of the following is NOT a factor typically considered by insurers when determining insurance premiums?
Age
Occupation
Gender
Ethnicity
#14
In property insurance, what does 'actual cash value' mean?
The amount the insurer must pay to replace the damaged property with a brand new item
The amount the insurer must pay, taking depreciation into account
The amount the insurer must pay, regardless of depreciation
The amount the insured must pay as a deductible before the insurer covers any losses
#15
What is 'reinstatement' in insurance?
The process of canceling a lapsed policy
The process of renewing a policy after it has lapsed
The process of transferring policy rights to another person
The process of underwriting a new policy
#16
What does 'indemnity' mean in insurance?
The right of the insured to transfer policy rights
The obligation of the insurer to compensate the insured for covered losses
The amount the insured must pay out of pocket before the insurer covers any losses
The period during which the insured can reinstate a lapsed policy
#17
What is 'policyholder surplus' in insurance?
The amount of money the insured receives from a claim
The amount of money the insurer has after paying claims and expenses
The value of the insured's assets
The total coverage limit of the insurance policy