#1
Which of the following is a common type of insurance sales agent?
Actuary
Underwriter
Insurance Broker
Claims Adjuster
#2
Which of the following is NOT a common type of life insurance?
Term life insurance
Whole life insurance
Variable life insurance
Accidental death insurance
#3
Which of the following is a factor considered by insurance companies when determining premiums for auto insurance?
The insured's age
The color of the insured vehicle
The insured's favorite music genre
The brand of the insured vehicle
#4
Which of the following is NOT a common type of health insurance plan?
Preferred Provider Organization (PPO)
Health Maintenance Organization (HMO)
Individual Retirement Account (IRA)
High Deductible Health Plan (HDHP)
#5
Which of the following is a characteristic of 'term life insurance'?
It provides coverage for a specific period of time
It accumulates cash value over time
It offers lifelong coverage
It requires a medical exam for approval
#6
What is the primary role of an insurance underwriter?
Selling insurance policies
Assessing risks and determining coverage
Handling insurance claims
Providing financial advice
#7
Which government agency regulates insurance sales practices in the United States?
Federal Reserve
Department of Labor
Securities and Exchange Commission
Insurance Regulatory Authority
#8
What is a 'captive agent' in the insurance industry?
An agent who works exclusively for one insurance company
An agent who sells insurance only to businesses
An agent who specializes in marine insurance
An agent who is licensed in multiple states
#9
What is the purpose of a 'free look period' in insurance?
To allow policyholders to cancel their policy within a certain timeframe and receive a full refund
To provide a grace period for premium payment
To allow policyholders to switch insurance companies without penalty
To extend coverage to additional insured parties
#10
In insurance terminology, what does 'indemnity' refer to?
The amount paid by the insured party
The process of filing a claim
The legal process for resolving disputes
The principle of restoring the insured to the same financial position as before the loss occurred
#11
Which of the following is NOT typically covered by a standard homeowner's insurance policy?
Fire damage
Flood damage
Theft
Liability protection
#12
What is the main function of a surplus lines insurance broker?
To sell insurance policies directly to consumers
To provide insurance coverage for high-risk individuals
To place insurance coverage with non-admitted insurers for unique or hard-to-place risks
To regulate insurance rates and forms
#13
Which of the following is a characteristic of a 'reinsurance' agreement?
It reduces the risk exposure of the original insured party
It increases the premiums paid by the original insured party
It provides coverage for losses that exceed a certain threshold
It excludes certain types of losses from coverage
#14
Which of the following is NOT typically covered by a standard commercial property insurance policy?
Fire damage
Theft of company vehicles
Flood damage
Business interruption due to power outage