Quiz Time: General Insurance Exam Practice Test!
Settings
-
+
This practice exam covers general insurance concepts. It is designed to help you evaluate your comprehension of the general insurance concepts for which you will be tested in your insurance license qualification exam. The questions are intended to resemble the types of querries and the range of content on your insurance license qualification exam; however, because insurance license exam questions are kept strictly confidential, you should not expect these questions to be the same as those you will see on your actual exam. Instead, this practice exam is designed to help you evaluate how well you understand the general insurance concepts presented in this book.
- 1.
- A.
Lloyd's Association
- B.
Reciprocal exchange
- C.
Mutual company
- D.
Multi-line insurer
- 2.
- A.
The named insured
- B.
A residence employee
- C.
A person who is on the insured location without permission
- D.
Any regular resident of the insured's household who pays rent
- 3.
- A.
Indemnity policies
- B.
ACV policies
- C.
Valued or agreed amount policies
- D.
Market value policies
- 4.
- A.
An assumption of risk
- B.
An intervening cause
- C.
The proximate cause of loss
- D.
A matter of strict liability
- 5.
- A.
60 days
- B.
45 days
- C.
30 days
- D.
15 days
- 6.
- A.
Unilateral contract
- B.
Representation
- C.
Warranty
- D.
Waiver
- 7.
- A.
$2,500
- B.
$2,000
- C.
$1,500
- D.
$1,000
- 8.
- A.
Premiums by combined losses and expenses
- B.
Premiums by underwriting losses
- C.
Operating expenses by total premiums
- D.
Underwriting losses by total premiums
- 9.
- 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
- 10.
- A.
Given by the agent's contract with the insurer.
- B.
Granted to an agent by state law.
- C.
The agent tells an insurance applicant that he or she has.
- D.
That members of the public can reasonably assume that the agent has.
- 11.
- 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
- 12.
- 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 are arising 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.
- 13.
- A.
Give the federal government a major role in providing insurance
- B.
Make property insurance available to risks that were otherwise considered uninsurable because of environmental hazards
- C.
Require complete disclosure of the reasons for policy cancellations
- D.
Force all insurance companies to participate in an insurance pool
- 14.
- A.
A maximum payment of $300
- B.
A maximum payment of $460
- C.
A maximum payment of $600
- D.
A maximum payment of $740
- 15.
- 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.
- 16.
- A.
Peril
- B.
Hazard
- C.
Risk
- D.
Catastrophe
- 17.
- A.
10 days
- B.
30 days
- C.
60 days
- D.
Until the end of the policy period
- 18.A device that is used to minimize small nuisance claims and that helps to keep insurance premiums down is called what?
- A.
Arbitration
- B.
Deductible
- C.
Valued policy
- D.
Coinsurance
- 19.
- A.
The special form (HO-3) only
- B.
The broad and special forms (HO-2 and HO-3) only
- C.
The comprehensive form (HO-5) only
- D.
All homeowners forms
- 20.Which type of insurance professional does not actually sell insurance coverages, but sells advice about insurance coverages?
- A.
Excess and surplus lines agent
- B.
Solicitor
- C.
Consultant
- D.
Producer
- 21.
- A.
Injury or damage caused by the operation of mobile equipment
- B.
Damage to property rented to the named insured
- C.
An injury that is also covered by a workers compensation law
- D.
Liability resulting from the accidental escape of pollutants
- 22.
- A.
A tort is a criminal act committed with the intent to cause injury.
- B.
A tort is a civil wrong that violates the rights of another.
- C.
A tort is any act that has the potential to cause financial loss to another person.
- D.
A tort is an act that can be prosecuted by the state or federal government even if no injury or damage occurred.
- 23.
- A.
Mail coverage form
- B.
Annual transit policy
- C.
Trip transit policy
- D.
Motor truck cargo shipper's form
- 24.
- A.
If there are more than five claims during a policy period.
- B.
On the next policy anniversary date.
- C.
If the insured pays an extra premium for reinstatement.
- D.
As soon as the aggregate is actually exhausted.
- 25.
- A.
60 days
- B.
30 days
- C.
20 days
- D.
10 days
- 26.
- A.
Binders are only valid when issued in writing.
- B.
A binder issued by an agent is valid only if the agent has express authority to issue the binder.
- C.
Some insurers issue binders directly to let insureds know coverage is in effect until a policy is actually issued.
- D.
A binder is a temporary contract of insurance.
- 27.
- A.
$50,000 per accident
- B.
$100,000 per accident
- C.
$250,000 per accident
- D.
$500,000 per accident
- 28.
- A.
At a garage by an experienced mechanic.
- B.
At the place of disablement.
- C.
Within 24 hours of the disablement.
- D.
Within 48 hours of the disablement.
- 29.
- A.
All dwelling forms
- B.
The basic form only
- C.
The basic and broad forms
- D.
The special form only
- 30.
- A.
The coverages provided by the policy
- B.
The policy's exclusions
- C.
The "trigger," or the way in which coverage is activated under the policy
- D.
The policy's conditions
- 31.
- A.
$500 a day
- B.
$300 a day
- C.
$250 a day
- D.
$100 a day
- 32.
- A.
Indefinitely
- B.
5 years
- C.
3 years
- D.
60 days
- 33.
- A.
Physical damage coverage
- B.
Uninsured motorists coverage
- C.
Medical payments
- D.
Liability coverage
- 34.
- A.
Injury for such things as libel, slander, false arrest, or invasion of privacy
- B.
Only bodily injuries that 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
- 35.
- A.
$250 for the cost of the bail bonds
- B.
$200 for the cost of the bail bonds
- C.
$150 for the cost of the bail bonds
- D.
$100 for the cost of the bail bonds
- 36.
- A.
30 days
- B.
14 days
- C.
10 days
- D.
7 days
- 37.
- A.
10% of the Coverage C limit
- B.
25% of the Coverage C limit
- C.
40% of the Coverage C limit
- D.
50% of the Coverage C limit
- 38.
- A.
Garage physical damage
- B.
Garage errors and omissions
- C.
Garage liability
- D.
Garagekeepers coverage
- 39.
- 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.
- 40.
- A.
$500 per person
- B.
$1,000 per person
- C.
$2,500 per person
- D.
$5,000 per person
- 41.
- A.
A few states have monopolistic state funds, and employers are required to purchase coverage from the fund.
- B.
Most states allow an employer to self-insure for the required benefits.
- C.
If an employer has coverage in one state, any operations started in other states will be automatically covered.
- D.
Workers compensation benefits are only available for work-related injuries that arise out of and in the course of employment.
- 42.
- A.
Direct writer system
- B.
Exclusive of captive agency system
- C.
Direct response system
- D.
Independent agency system
- 43.
- A.
Impact between a covered auto and a deer
- B.
Impact between a covered auto and a stationary object
- C.
Impact between a covered auto and another vehicle
- D.
Upset of a covered auto, resulting in damage
- 44.
- A.
Windstorm
- B.
Explosion
- C.
Volcanic eruption
- D.
Sprinkler leakage
- 45.
- A.
An insured causes injuries while operating a taxi cab.
- B.
An auto mechanic has an accident while road testing a customer's vehicle.
- C.
An insured damages another vehicle while driving a motorcycle.
- D.
Bodily injuries and property damage occur when an insured is involved in an accident while driving co-workers to their job as part of a share-the-expense car pool.
- 46.
- A.
The basic form does not include personal property coverage.
- B.
Personal property of a guest may be covered.
- C.
Special sublimits apply to some types of personal property.
- D.
The full limit applies to personal property anywhere in the world.
- 47.
- A.
The value reporting form.
- B.
A replacement cost basis.
- C.
The business income form.
- D.
A blanket basis.
- 48.
- A.
A general liability policy.
- B.
An umbrella policy.
- C.
An errors and omissions policy.
- D.
A difference in conditions policy.
Back to top