Insurance Exam Review | Quick Check
Questions & Answers for Certification Prep.
General Insurance Basics
Q1. What term describes the amount paid by the insured before the insurer begins to pay for a
qualified event?
Answer :>>> ✔✔ Deductible
Q2. The amount you pay regularly to maintain insurance coverage is called what?
Answer :>>> ✔✔ Premium
Q3. A fixed dollar amount paid at the time of service is called what?
Answer :>>> ✔✔ Co-pay
Q4. The percentage of medical costs the insured pays after meeting the deductible is called?
Answer :>>> ✔✔ Co-insurance
Q5. What is an insurance policy?
Answer :>>> ✔✔ A legal contract between insurer and insured
Q6. What is an insurance claim?
Answer :>>> ✔✔ A request for payment from the insurer for a covered loss
Q7. What is an exclusion?
Answer :>>> ✔✔ A loss or event not covered by the policy
Q8. What is underwriting?
Answer :>>> ✔✔ The process of evaluating risk and deciding coverage terms
Q9. Insurance works by pooling what?
Answer :>>> ✔✔ Risk
Q10. The purpose of insurance is to transfer what?
Answer :>>> ✔✔ Financial risk
Health Insurance
Q11. Which U.S. program provides coverage for people over 65?
Answer :>>> ✔✔ Medicare
Page 1 of 9
, Insurance Exam Review | Quick Check
Questions & Answers for Certification Prep.
Q12. Which U.S. program provides coverage for low-income individuals?
Answer :>>> ✔✔ Medicaid
Q13. Which type of health plan usually requires a referral to see a specialist?
Answer :>>> ✔✔ HMO (Health Maintenance Organization)
Q14. Which plan offers more flexibility but higher costs?
Answer :>>> ✔✔ PPO (Preferred Provider Organization)
Q15. What does HSA stand for?
Answer :>>> ✔✔ Health Savings Account
Q16. What is the benefit of an HSA?
Answer :>>> ✔✔ Pre-tax savings for medical expenses
Q17. Which health plan feature has an annual maximum out-of-pocket cost?
Answer :>>> ✔✔ Out-of-pocket maximum
Q18. Preventive care services are often covered with what cost to the insured?
Answer :>>> ✔✔ No cost (free with many plans)
Q19. COBRA allows individuals to do what?
Answer :>>> ✔✔ Continue employer-sponsored health coverage after leaving a job
Q20. Which law requires most Americans to have health insurance?
Answer :>>> ✔✔ Affordable Care Act (ACA)
Auto Insurance
Q21. Which type covers damage you cause to others?
Answer :>>> ✔✔ Liability insurance
Q22. Which covers your own car in a crash?
Answer :>>> ✔✔ Collision insurance
Q23. Which covers your car against theft, vandalism, or natural disasters?
Answer :>>> ✔✔ Comprehensive insurance
Page 2 of 9
Questions & Answers for Certification Prep.
General Insurance Basics
Q1. What term describes the amount paid by the insured before the insurer begins to pay for a
qualified event?
Answer :>>> ✔✔ Deductible
Q2. The amount you pay regularly to maintain insurance coverage is called what?
Answer :>>> ✔✔ Premium
Q3. A fixed dollar amount paid at the time of service is called what?
Answer :>>> ✔✔ Co-pay
Q4. The percentage of medical costs the insured pays after meeting the deductible is called?
Answer :>>> ✔✔ Co-insurance
Q5. What is an insurance policy?
Answer :>>> ✔✔ A legal contract between insurer and insured
Q6. What is an insurance claim?
Answer :>>> ✔✔ A request for payment from the insurer for a covered loss
Q7. What is an exclusion?
Answer :>>> ✔✔ A loss or event not covered by the policy
Q8. What is underwriting?
Answer :>>> ✔✔ The process of evaluating risk and deciding coverage terms
Q9. Insurance works by pooling what?
Answer :>>> ✔✔ Risk
Q10. The purpose of insurance is to transfer what?
Answer :>>> ✔✔ Financial risk
Health Insurance
Q11. Which U.S. program provides coverage for people over 65?
Answer :>>> ✔✔ Medicare
Page 1 of 9
, Insurance Exam Review | Quick Check
Questions & Answers for Certification Prep.
Q12. Which U.S. program provides coverage for low-income individuals?
Answer :>>> ✔✔ Medicaid
Q13. Which type of health plan usually requires a referral to see a specialist?
Answer :>>> ✔✔ HMO (Health Maintenance Organization)
Q14. Which plan offers more flexibility but higher costs?
Answer :>>> ✔✔ PPO (Preferred Provider Organization)
Q15. What does HSA stand for?
Answer :>>> ✔✔ Health Savings Account
Q16. What is the benefit of an HSA?
Answer :>>> ✔✔ Pre-tax savings for medical expenses
Q17. Which health plan feature has an annual maximum out-of-pocket cost?
Answer :>>> ✔✔ Out-of-pocket maximum
Q18. Preventive care services are often covered with what cost to the insured?
Answer :>>> ✔✔ No cost (free with many plans)
Q19. COBRA allows individuals to do what?
Answer :>>> ✔✔ Continue employer-sponsored health coverage after leaving a job
Q20. Which law requires most Americans to have health insurance?
Answer :>>> ✔✔ Affordable Care Act (ACA)
Auto Insurance
Q21. Which type covers damage you cause to others?
Answer :>>> ✔✔ Liability insurance
Q22. Which covers your own car in a crash?
Answer :>>> ✔✔ Collision insurance
Q23. Which covers your car against theft, vandalism, or natural disasters?
Answer :>>> ✔✔ Comprehensive insurance
Page 2 of 9
