Insurance MCQs

1. What is the purpose of insurance?
To protect against financial losses
To earn a profit for the insurance company
To guarantee investment returns
2. What is the most common type of insurance?
Health insurance
Life insurance
Auto insurance
3. What is a premium?
The amount an insured person pays for insurance coverage
The amount an insurance company pays for a claim
The amount an insurance agent earns in commissions
4. Which of the following is not a factor that determines insurance premiums?
Gender
Education level
Age
5. What is a deductible?
The maximum amount of coverage an insurance policy provides
The amount an insurance company pays for a claim
The amount an insured person pays out of pocket before insurance coverage kicks in
6. What is liability insurance?
Insurance that covers damage to other people's property
Insurance that covers medical expenses for yourself
Insurance that covers damage to your own property
7. What is comprehensive insurance?
Insurance that covers medical expenses for yourself
Insurance that covers damage to other people's property
Insurance that covers damage from natural disasters or theft
8. Which of the following is not a type of life insurance?
Variable life insurance
Term life insurance
Comprehensive life insurance
9. What is a beneficiary?
The person who receives life insurance proceeds after the insured person dies
The insurance agent who sells the policy
The person who purchases the insurance policy
10. What is disability insurance?
Insurance that provides income if you are unable to work due to illness or injury
Insurance that covers medical expenses for yourself
Insurance that covers damage to other people's property
11. What is long-term care insurance?
Insurance that covers damage to other people's property
Insurance that covers medical expenses for yourself
Insurance that covers the costs of long-term care services, such as nursing homes or home health care
12. What is travel insurance?
Insurance that covers damage to other people's property while traveling
Insurance that covers medical expenses while traveling
Both
13. What is underwriting?
The process of filing an insurance claim
The process of evaluating and pricing insurance policies
The process of canceling an insurance policy
14. What is a claims adjuster?
An employee of an insurance company who investigates and evaluates insurance claims
An attorney who represents insurance companies in legal proceedings
An independent contractor who evaluates insurance claims for multiple insurance companies
15. What is an insurance rider?
A person who is insured under an insurance policy
An insurance policy that covers multiple people
An amendment or addition to an insurance policy