215 Insurance License Exam
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is an endorsement?
✔✔A policy change or addition
What is the duty of utmost good faith?
✔✔Requirement for honesty from both insurer and insured
What is fraud in insurance?
✔✔Intentional misrepresentation for financial gain
What is a cancellation?
✔✔Termination of a policy before its expiration
What is a nonrenewal?
✔✔Decision not to renew a policy at expiration
What is a grace period?
✔✔Extra time to pay a premium without losing coverage
What is a coverage limit?
1
,✔✔Maximum amount the insurer will pay
What is a policy term?
✔✔The length of time coverage is in force
What is a loss ratio?
✔✔Claims paid compared to premiums collected
What is an adjuster?
✔✔A person who investigates and settles claims
What is a policyholder in an insurance contract?
✔✔The person or entity that owns the insurance policy
What does a premium represent?
✔✔The amount paid to keep insurance coverage active
What is risk in insurance terms?
✔✔The possibility of loss
What does indemnity mean in insurance?
✔✔Restoring the insured to their financial position before loss
2
, What is an insurable interest?
✔✔A financial or legal interest in the insured item or life
When must insurable interest exist for life insurance?
✔✔At the time the policy is issued
What is a peril?
✔✔A cause of loss
What is a hazard?
✔✔A condition that increases the chance of loss
What is an exclusion in an insurance policy?
✔✔A loss or situation not covered
What is a deductible?
✔✔The amount the insured pays before coverage applies
What is underwriting?
✔✔The process of evaluating risk and setting premiums
3
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is an endorsement?
✔✔A policy change or addition
What is the duty of utmost good faith?
✔✔Requirement for honesty from both insurer and insured
What is fraud in insurance?
✔✔Intentional misrepresentation for financial gain
What is a cancellation?
✔✔Termination of a policy before its expiration
What is a nonrenewal?
✔✔Decision not to renew a policy at expiration
What is a grace period?
✔✔Extra time to pay a premium without losing coverage
What is a coverage limit?
1
,✔✔Maximum amount the insurer will pay
What is a policy term?
✔✔The length of time coverage is in force
What is a loss ratio?
✔✔Claims paid compared to premiums collected
What is an adjuster?
✔✔A person who investigates and settles claims
What is a policyholder in an insurance contract?
✔✔The person or entity that owns the insurance policy
What does a premium represent?
✔✔The amount paid to keep insurance coverage active
What is risk in insurance terms?
✔✔The possibility of loss
What does indemnity mean in insurance?
✔✔Restoring the insured to their financial position before loss
2
, What is an insurable interest?
✔✔A financial or legal interest in the insured item or life
When must insurable interest exist for life insurance?
✔✔At the time the policy is issued
What is a peril?
✔✔A cause of loss
What is a hazard?
✔✔A condition that increases the chance of loss
What is an exclusion in an insurance policy?
✔✔A loss or situation not covered
What is a deductible?
✔✔The amount the insured pays before coverage applies
What is underwriting?
✔✔The process of evaluating risk and setting premiums
3
