Insurance MCQs

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All of the following are parties to a life insurance contract EXCEPT: I. Insurer II. Underwriter III. Beneficiary IV. Owner V. Insured






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Which of the following will have to meet an insurable interest requirement in order for a policy to issue?






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Which of the following is NOT an operating goal of an insurer?






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What are the three core functions that exist within a typical insurer?






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Which of the following errors is the most significant problem in measuring insurer profitability?






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Which of the following is NOT a reason insurers are subject to governmental regulation?






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Which of the following is the primary reason insurer solvency is monitored by regulators?






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Which of the following are the three major goals of insurance rate regulation?






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Which of the following types of insurance customer is most likely to have the broadest choice of risk financing alternatives?






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Which of the following are advantages of allowing qualified producers to handle certain types of claims? I. Lower loss adjustment expenses. II. Lar...






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Which of the following is the principal method of determining a prospect’s insurance needs?






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Which of the following does NOT determine the underwriting capacity of an insurer?






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Which of the following actions must be taken by a line underwriter if policy limits on an application exceed the line underwriter’s binding au...






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Numerous factors help shape an insurer’s underwriting policy. Which of the following is NOT a constraint that would cause certain types of ins...






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COPE is an acronym describing a common tool used in underwriting the fire peril and other causes of loss to property. What does COPE stand for?






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Which of the following policy provisions does NOT affect the determination of the amount an insurer is obligated to pay at the time of a covered loss...






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Which of the following is NOT a characteristic of umbrella and excess liability insurance?






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Which of the following is an ethical obligation insurers have with regard to using their superior knowledge of loss control and prevention?






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Which of the following statements about premium auditing is true?






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Which of the following is NOT a reason why accurate premium audits are important to the insurer?






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Which of the following is NOT included among an insurer’s claim representatives?






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Which of the following is NOT a reason that a court of law may find an insurer to be guilty of bad faith claim settlement practices if it has denied ...






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Which of the following is NOT a reason why accurate premium audits are important to the insurer?






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Which of the following is NOT a reason why accurate premium audits are important to the insurer?






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Which of the following is NOT a reason why accurate premium audits are important to the insurer?






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Which of the following is NOT a reason why accurate premium audits are important to the insurer?






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Which of the following should a claim representative do when deciding how thoroughly to investigate a claim?






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Which of the following potential claimants does NOT have an insurable interest in property damaged or destroyed by a covered cause of loss?






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Which of the following causes of loss are common carriers liable for when a shipper’s goods are damaged?






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Betty Smith is an avid golfer. While teeing off at her golf club recently, she sliced her shot and hit her golfing partner, Susan Jones, in the face ...






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Which of the following is NOT a reason why reinsurance is purchased?






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Which of the following is true regarding a facultative reinsurance contract?






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Which of the following reinsurance programs is best suited for a primary insurer experiencing rapid premium growth in its personal auto insurance lin...






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Which of the following is the traditional and most commonly used system for compensating victims of auto accidents?






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Which of the following is the basic argument in favor of no-fault auto insurance systems currently used in the United States?






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Under which type of auto insurance arrangement are all auto insurers in a state required to issue policies and service their proportionate share of h...






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Which of the following is NOT contained in the Declarations page of the Personal Auto Policy (PAP)?






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Liability coverage – Part A is the most common part of the Personal Auto Policy (PAP). Which of the following is NOT covered under the liabili...






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Which of the following is NOT considered to be an uninsured motor vehicle by the Uninsured Motorists Coverage – Part C of the Personal Auto Po...






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Which of the following is NOT a duty of an insured after an auto accident covered under the Personal Auto Policy (PAP)?






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Which of the following is NOT a common endorsement added to the Personal Auto Policy (PAP)?






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Which of the following is true regarding tenants of rented apartment units?






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One of the Conditions in Homeowners HO-3 (the Special Form) lists the insured’s duties after a property loss. Which of the following statement...






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Spencer has a Homeowners HO-3 policy that provides $320,000 of insurance on his dwelling, which has a current replacement value of $500,000. Ignoring...






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Which of the following is NOT an exclusion in Section II of the Homeowners HO-3 policy?






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Which of the following statements regarding the “severability of insurance” condition in the HO-3 Special Form insurance policy is true? ...






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Which of the following motor vehicles is NOT covered under Section II – Liability coverage in the ISO HO-3 policy?






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Which of the following statements about Fair Access to Insurance Requirements (FAIR) plans is true? I. FAIR plans make property insurance coverage a...






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Which of the following is NOT typically contained in the declarations page of a Commercial Package Policy?






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What is the fundamental difference between the three commercial property insurance covered causes of loss forms – Basic Form, Broad Form, and ...






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ABC Corporation is insured under a Business and Personal Property Coverage Form that specifies a $4 million limit of insurance on the building and a ...






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Which of the following is true regarding the “No Benefit to Bailee” condition used in commercial property forms?






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Which of the following statements concerning the Agreed Value optional coverage available for purchasers of the Business and Personal Property Covera...






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Which of the following factors does NOT result in higher premiums on commercial property insurance?






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The most widely used general liability insurance form is the Insurance Services Office, Inc. (ISO) Commercial General Liability (CGL) policy. Which o...






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The most widely used general liability insurance form is the Insurance Services Office, Inc. (ISO) Commercial General Liability (CGL) policy. Which o...






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Which of the following are paid by the Commercial General Liability form’s Coverage C – Medical Payments? I. Only medical expenses for...






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Which of the following statements regarding certain supplementary payments under Coverages A and B of the Commercial General Liability policy are tru...






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Chip is a volunteer worker at his church’s mid-week adult day care facility. He accidentally spilled hot coffee on one of the elderly particip...






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The owner, who also is the landlord, of an office building has Premises and Operations coverage under a Commercial General Liability (CGL) policy wit...






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In the United States, which of the following is true regarding workers compensation?






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Workers compensation statutes apply to virtually all industrial workers and to most other kinds of private employment. However, there are a few excep...






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Which of the following are true regarding the Voluntary Compensation and Employers Liability endorsement to the Workers Compensation and Employers Li...






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Which of the following is true regarding “drop-down” coverage that pays claims for which the underlying commercial liability policies do ...






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Which of the following is NOT a way that aircraft insurance resembles auto insurance?






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Which of the following is an important difference between coverage provided by commercial general liability (CGL) insurance and coverage provided by ...






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Janis is the Human Resources Manager of Company X and she is looking for a group life insurance policy. The insurance agent informs her that Company X...






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Bill submitted his proposal for a whole life insurance policy with a sum insured of $1,000,000 and paid the first premium of $2,000. He has passed th...






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Which of the following is/are the effects of the principle of indemnity in insurance? I. It prevents the insured from profiting from insurance. II. ...






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Ronald purchased his life insurance policy 5 years ago and committed suicide last month. When the insurance company processed the claim, it was found...






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Which of the following statements with respect to a disability income benefit rider in a life insurance policy are CORRECT? I. Income benefits will b...






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Which of the following statements regarding a convertible term life insurance policy are CORRECT? I. The insured has the option of converting the pol...






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Jane is 30 years old now and is considering taking out a life insurance policy. The quotations for four different policies have been obtained, all ba...






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Derek is the owner of a factory in Hong Kong. A German buyer recently placed an order with Derek, included in the contract is a provision that Derek ...






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In requiring Derek to insure all his products, the insurance companies are MOST LIKELY protecting themselves against which ONE of the following issues...






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In giving up the contract with the German buyer, Derek is MOST LIKELY to have taken which ONE of the 6 steps in the risk management process?






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Mathew is 50 years old and single. He was employed for over 14 years as a full-time chef of a restaurant. However, Mathew had a car accident 3 months...






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Mathew is 50 years old and single. He was employed for over 14 years as a full-time chef of a restaurant. However, Mathew had a car accident 3 months...






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Mathew is 50 years old and single. He was employed for over 14 years as a full-time chef of a restaurant. However, Mathew had a car accident 3 months...






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A social device for spreading the chance of financial loss among a large number of people is the definition of






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Which of the following risks is most likely to be insurable?






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Roger refuses to travel by airplane. Roger is managing the risk of being in a plane crash by






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Chianna becomes injured in a car accident caused when she took her eyes off the road to answer her cell phone. This is an example of a






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Mathematicians who study and compile statistical data regarding exposure and risks for insurance companies are called






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Which of the following would not be an example of insurable interest?






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Kim is injured in a house fire. When the bills come, the insurance company pays 80% of the cost and Kim pays the rest. This is an example of






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Hoosier Insurance Company is owned by the policyholders. Hoosier Insurance is a






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Which of the following people represents several insurance companies but owns the policy expirations?






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Which of the following can bind an insurance company by oral or written agreement?






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The ZYX Insurance Company is incorporated in Alabama. While doing business in Texas, it is






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Self-insurance is an example of which method of handling risk?






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Most insurance regulation takes place at the






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Applicants for insurance must be given advance notice, including all the following types of information except






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Which of the following does not contain provisions protecting individual privacy?






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Consumer reporting agencies are prevented from putting information in their reports about all the following except






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Under the Financial Modernization Act, an individual about whom a financial institution collects any information is a






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Under the Financial Modernization Act, an individual with whom a financial institution has an ongoing relationship is a






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The Commissioner of Insurance has all the following powers except






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Non financial regulatory activities of an insurance department fall under the broad heading of






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Associations organized to protect claimants, policyholders, annuitants, and creditors of financially impaired insurers are known as