Back to Explore

Insurance Exam Questions And Answers

Question 1 of 3

Q1 . What is a device used to minimize small nuisance claims and help keep insurance premiums down called?

A Arbitration

B Deductible

C Valued policy

D Coinsurance

Q2 . Under most property insurance policies, the policy territory includes which of the following?

A Only the United States

B The United States, its territories and possessions, and Canada

C The United States, Canada, and Mexico

D All of North America and Europe

Q3 . Which type of insurance professional sells advice about insurance coverage but does not actually sell insurance coverage?

A Excess and surplus lines agent

B Solicitor

C Consultant

D Producer

Q4 . In legal terms, when one party's actions result in giving up a known right, what has the party created?

A Unilateral contract

B Representation

C Warranty

D Waiver

Q5 . When an uninterrupted chain of events resulting from a negligent act causes a loss, that act is considered to be which of the following?

A An assumption of risk

B An intervening cause

C The proximate cause of loss

D A matter of strict liability

Q6 . What is called something that might increase the likelihood that a loss will occur?

A Peril

B Hazard

C Risk

D Catastrophe

Q7 . In the event of a physical damage loss that makes a covered auto unavailable for a period of time, a personal auto policy will provide coverage for transportation expenses at the rate of $20 per day up to how much?

A A maximum payment of $300

B A maximum payment of $460

C A maximum payment of $600

D A maximum payment of $740

Q8 . What is the purpose of a deductible in an insurance policy?

A To increase the premium paid by the policyholder

B To decrease the insurance company's liability for small claims

C To provide additional coverage beyond the policy limit

D To extend the policy term

Q9 . Which peril is not covered under a commercial property coverage part with the basic causes of loss form attached?

A Windstorm

B Explosion

C Volcanic eruption

D Sprinkler leakage

Q10 . Under the NCCI worker's compensation and employers liability policy form, what is the basic, or minimum, limit for employer's liability coverage per accident?

A $50,000 per accident

B $100,000 per accident

C $250,000 per accident

D $500,000 per accident

Q11 . Under a personal auto policy, if an insured already has physical damage coverage for at least one vehicle, how many days does the insured have to notify the insurer and request coverage for a new vehicle from the date it is acquired to ensure automatic coverage?

A 30 days

B 14 days

C 10 days

D 7 days

Q12 . Some property insurance policies provide for payment of the full policy limit in the event of a total loss by a covered peril, regardless of the actual value of the property. These policies are known as which of the following?

A Indemnity policies

B ACV policies

C Valued or agreed amount policies

D Market value policies

Q13 . Which dwelling policy forms are named peril forms?

A All dwelling forms

B The basic and broad forms

C The basic form only

D The special form only

Q14 . If coverage for personal liability and medical payments is attached to a dwelling policy, what basic limit of coverage applies to medical payments unless a higher amount is purchased?

A $500 per person

B $1,000 per person

C $2,500 per person

D $5,000 per person

Q15 . Who is eligible for medical payments under a homeowners policy in case of an injury?

A The named insured

B A residence employee

C A person who is at the insured location without permission

D Any regular resident of the insured's household who pays rent

Q16 . Tom Baxter has an automobile insured by a personal auto policy. He trades in his car and purchases a new private passenger auto as a replacement vehicle. If he does not notify the insurance company, the liability coverage for his replacement vehicle will apply automatically for how long?

A 10 days

B 30 days

C 60 days

D Until the end of the policy period

Q17 . Under liability insurance policies, what does an "aggregate limit" mean?

A It is the most the insurer will pay for any one accident.

B It is the most the insurer will pay for all losses during any one policy period.

C It is the maximum limit for each claim when multiple claimants arise out of the same occurrence.

D It is the single largest limit that applies when a loss is covered by two or more policies issued by the same insurer.

Q18 . Under liability insurance policies, what does the term "personal injury" usually mean?

A Injury for such things as libel, slander, false arrest, or invasion of privacy.

B Only bodily injuries are suffered by individuals.

C Any form of injury that affects a person, including bodily injury, property damage, financial injury, and damage to one's reputation.

D Injuries suffered by named insureds or family members who are insured under personal lines policies.

Q19 . If general liability "claims-made" coverage is renewed by "occurrence" coverage and the insured purchases a supplemental extended reporting period (ERP), for how long will the period for reporting claims under the policy be extended?

A Indefinitely

B 5 years

C 3 years

D 60 days

Q20 . Under which type of marketing system do agents or agencies operate as independent businesses but agree to represent only one insurance company?

A Direct writer system

B Exclusive of the captive agency system

C Direct response system

D Independent agency system

Q21 . Claims-made general liability coverage does not apply to bodily injury or property damage that occurs when?

A On the policy's retroactive date

B Before the policy's retroactive date

C After the policy's retroactive date

D Before the effective date, if there is no retroactive date

Q22 . Under the business auto coverage part, each of the following is true about the classifications of covered autos, which are designated by numerical symbols shown in the declarations, except for which of the following?

A All classes of newly acquired autos are automatically covered.

B An insured can select different classifications for various coverages.

C "Any auto" is the broadest coverage classification.

D "Hired autos" include autos the insured leases, hires, rents, or borrows.

Q23 . For how many days does the coverage apply at another location for property removed to protect it from a flood under the National Flood Insurance Program?

A 60 days

B 45 days

C 30 days

D 15 days

Q24 . An insurer's loss ratio is determined by dividing what?

A Premiums by combined losses and expenses

B Premiums by underwriting losses

C Operating expenses by total premiums

D Underwriting losses by total premiums

Q25 . Which of the following is not true about difference in conditions (DIC) insurance?

A DIC policies provide property and liability coverages

B Traditional perils (such as fire, lightning, and so on) are usually excluded by DIC policies

C DIC supplements other coverages and fills insurance gaps

D DIC can provide considerable protection at a reasonable cost

Q26 . What is a device used to minimize small nuisance claims and help keep insurance premiums down called?

A Arbitration

B Deductible

C Valued policy

D Coinsurance

Q27 . Under most property insurance policies, the policy territory includes which of the following?

A Only the United States

B The United States, its territories and possessions, and Canada

C The United States, Canada, and Mexico

D All of North America and Europe

Q28 . Which type of insurance professional sells advice about insurance coverage but does not actually sell insurance coverage?

A Excess and surplus lines agent

B Solicitor

C Consultant

D Producer

Q29 . In legal terms, when one party's actions result in giving up a known right, what has the party created?

A Unilateral contract

B Representation

C Warranty

D Waiver

Q30 . When an uninterrupted chain of events resulting from a negligent act causes a loss, that act is considered to be which of the following?

A An assumption of risk

B An intervening cause

C The proximate cause of loss

D A matter of strict liability

Q31 . What is called something that might increase the likelihood that a loss will occur?

A Peril

B Hazard

C Risk

D Catastrophe

Q32 . In the event of a physical damage loss that makes a covered auto unavailable for a period of time, a personal auto policy will provide coverage for transportation expenses at the rate of $20 per day up to how much?

A A maximum payment of $300

B A maximum payment of $460

C A maximum payment of $600

D A maximum payment of $740

Q33 . What is the purpose of a deductible in an insurance policy?

A To increase the premium paid by the policyholder

B To decrease the insurance company's liability for small claims

C To provide additional coverage beyond the policy limit

D To extend the policy term

Q34 . Which peril is not covered under a commercial property coverage part with the basic causes of loss form attached?

A Windstorm

B Explosion

C Volcanic eruption

D Sprinkler leakage

Q35 . Under the NCCI worker's compensation and employers liability policy form, what is the basic, or minimum, limit for employer's liability coverage per accident?

A $50,000 per accident

B $100,000 per accident

C $250,000 per accident

D $500,000 per accident

Q36 . Under a personal auto policy, if an insured already has physical damage coverage for at least one vehicle, how many days does the insured have to notify the insurer and request coverage for a new vehicle from the date it is acquired to ensure automatic coverage?

A 30 days

B 14 days

C 10 days

D 7 days

Q37 . Some property insurance policies provide for payment of the full policy limit in the event of a total loss by a covered peril, regardless of the actual value of the property. These policies are known as which of the following?

A Indemnity policies

B ACV policies

C Valued or agreed amount policies

D Market value policies

Q38 . Which dwelling policy forms are named peril forms?

A All dwelling forms

B The basic and broad forms

C The basic form only

D The special form only

Q39 . If coverage for personal liability and medical payments is attached to a dwelling policy, what basic limit of coverage applies to medical payments unless a higher amount is purchased?

A $500 per person

B $1,000 per person

C $2,500 per person

D $5,000 per person

Q40 . Who is eligible for medical payments under a homeowners policy in case of an injury?

A The named insured

B A residence employee

C A person who is at the insured location without permission

D Any regular resident of the insured's household who pays rent

Q41 . Tom Baxter has an automobile insured by a personal auto policy. He trades in his car and purchases a new private passenger auto as a replacement vehicle. If he does not notify the insurance company, the liability coverage for his replacement vehicle will apply automatically for how long?

A 10 days

B 30 days

C 60 days

D Until the end of the policy period

Q42 . Under liability insurance policies, what does an "aggregate limit" mean?

A It is the most the insurer will pay for any one accident.

B It is the most the insurer will pay for all losses during any one policy period.

C It is the maximum limit for each claim when multiple claimants arise out of the same occurrence.

D It is the single largest limit that applies when a loss is covered by two or more policies issued by the same insurer.

Q43 . Under liability insurance policies, what does the term "personal injury" usually mean?

A Injury for such things as libel, slander, false arrest, or invasion of privacy.

B Only bodily injuries are suffered by individuals.

C Any form of injury that affects a person, including bodily injury, property damage, financial injury, and damage to one's reputation.

D Injuries suffered by named insureds or family members who are insured under personal lines policies.

Q44 . If general liability "claims-made" coverage is renewed by "occurrence" coverage and the insured purchases a supplemental extended reporting period (ERP), for how long will the period for reporting claims under the policy be extended?

A Indefinitely

B 5 years

C 3 years

D 60 days

Q45 . Under which type of marketing system do agents or agencies operate as independent businesses but agree to represent only one insurance company?

A Direct writer system

B Exclusive of the captive agency system

C Direct response system

D Independent agency system

Q46 . Claims-made general liability coverage does not apply to bodily injury or property damage that occurs when?

A On the policy's retroactive date

B Before the policy's retroactive date

C After the policy's retroactive date

D Before the effective date, if there is no retroactive date

Q47 . Under the business auto coverage part, each of the following is true about the classifications of covered autos, which are designated by numerical symbols shown in the declarations, except for which of the following?

A All classes of newly acquired autos are automatically covered.

B An insured can select different classifications for various coverages.

C "Any auto" is the broadest coverage classification.

D "Hired autos" include autos the insured leases, hires, rents, or borrows.

Q48 . For how many days does the coverage apply at another location for property removed to protect it from a flood under the National Flood Insurance Program?

A 60 days

B 45 days

C 30 days

D 15 days

Q49 . An insurer's loss ratio is determined by dividing what?

A Premiums by combined losses and expenses

B Premiums by underwriting losses

C Operating expenses by total premiums

D Underwriting losses by total premiums

Q50 . Which of the following is not true about difference in conditions (DIC) insurance?

A DIC policies provide property and liability coverages

B Traditional perils (such as fire, lightning, and so on) are usually excluded by DIC policies

C DIC supplements other coverages and fills insurance gaps

D DIC can provide considerable protection at a reasonable cost

From Classroom to Quiz Stardom

When James Wilson first created a quiz on ancient civilizations for his high school history class, he never imagined it would lead to a side career as one of QuizMaker's most successful creators.

Three years and over 200 quizzes later, James's 'History Mysteries' series has amassed more than 2 million plays and a dedicated following of history enthusiasts from around the world.

Finding a Niche in Historical Puzzles

James's approach combines historical accuracy with engaging storytelling and problem-solving elements. 'I wanted to create quizzes that weren't just about memorizing dates and names,' he explains. 'Each quiz tells a story and invites players to solve a historical mystery or puzzle.'

This unique format has resonated with players who might not typically be drawn to history content, helping James build an audience beyond traditional history buffs.

Building a Community Around Historical Content

Beyond creating engaging quizzes, James has built a thriving community through his dedicated social media channels and a monthly newsletter where he shares historical facts, behind-the-scenes research, and previews of upcoming quizzes.

'The community aspect has been the most rewarding part,' James says. 'I receive messages from students saying my quizzes helped them develop a love for history, and from older adults who enjoy testing their knowledge and learning new things.'

Monetization Strategy

While James started creating quizzes as a teaching tool, they've now become a significant source of income. Through a combination of premium quizzes, sponsorships from educational companies, and affiliate marketing for history books and courses, he's been able to generate substantial revenue.

'Last year, my quiz income actually exceeded my teaching salary,' James reveals. 'It's allowed me to reduce my teaching hours and focus more on creating high-quality educational content.'