#1
Which of the following is a fundamental principle of insurance?
Adverse selection
Utmost good faith
Moral hazard
Indemnity
#2
What is the purpose of underwriting in insurance?
To calculate premiums
To evaluate risk
To process claims
To market insurance policies
#3
Which of the following is NOT a type of life insurance?
Term life insurance
Whole life insurance
Universal life insurance
Property insurance
#4
In insurance, what does 'peril' refer to?
The insured party
The event causing loss
The policy premium
The insurance company
#5
Which of the following is NOT a type of property insurance?
Homeowners insurance
Auto insurance
Health insurance
Renters insurance
#6
What does 'liability insurance' primarily cover?
Damage to the insured property
Legal responsibilities to third parties
Medical expenses of the insured
Loss of income due to disability
#7
Which regulatory body oversees insurance companies in the United States?
#8
What is the purpose of a 'rider' in an insurance policy?
To decrease coverage
To increase coverage
To cancel the policy
To change beneficiaries
#9
What does the term 'coinsurance' refer to in insurance?
Shared cost between insurer and insured
Insurer's total liability
Exclusion from coverage
Premium payment method
#10
What does 'actuary' mean in insurance terminology?
Insurance sales agent
Insurance claims adjuster
Insurance risk analyst
Insurance policyholder
#11
What is the purpose of a 'deductible' in insurance policies?
To reduce the premium
To increase the coverage
To calculate claims
To share the risk
#12
Which of the following is an example of an 'endorsement' in insurance?
Changing the policyholder's address
Declaring a pre-existing condition
Increasing the deductible
Filing a claim
#13
What is a 'waiting period' in insurance policies typically associated with?
Filing a claim
Purchasing a policy
Pre-existing conditions
Policy renewal
#14
What is the principle of 'subrogation' in insurance?
Transfer of rights from insured to insurer
Transfer of ownership of the insured item
Cancellation of insurance policy
Transfer of risk to a third party
#15
What does the 'loss ratio' measure in insurance?
Profitability of insurance companies
Frequency of claims
Ratio of premiums paid to claims incurred
Risk exposure of policyholders
#16
What is the principle of 'insurable interest' in insurance?
The insured party's obligation to disclose all relevant information
The insurer's obligation to pay claims promptly
The insured party's financial stake in the insured property
The insurer's obligation to act in good faith