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Free Practice Quiz Question List

08 Insurance and Risk Management Online Quiz Questions

Use this free practice quiz with 20 questions to review 08 Insurance and Risk Management, test your knowledge, and prepare for your next test or exam.

20 questions
01
True or false
1 point

True or false: Paying a premium guarantees that an insurer will cover every kind of loss a policyholder might experience.

  1. A

    True

  2. B

    False

02
True or false
1 point

True or false: A renters insurance policy generally insures the building in which the renter lives.

  1. A

    True

  2. B

    False

03
Choose one
1 point

Which term means the payment made to an insurer in exchange for coverage under a policy?

  1. A

    A maximum payment the insurer will make for a covered loss

  2. B

    A payment made to the insurer in exchange for coverage

  3. C

    A portion of a covered claim the policyholder pays

  4. D

    A written change that modifies a standard policy

04
Written response
1 point

What is the term for the amount a policyholder pays an insurer in exchange for coverage? Enter the insurance term.

05
Fill in the blank
1 point

The written contract that describes insurance coverage and its terms is called a .

06
Choose one
1 point

A covered repair costs $4,000, and the policy has a $1,000 deductible. Subject to the policy’s limits and terms, how much may the insurer pay toward this repair?

  1. A

    $1,000

  2. B

    $3,000

  3. C

    $4,000

  4. D

    $5,000

07
Fill in the blank
1 point

The amount a policyholder must pay toward a covered claim before the insurer pays according to the policy is the .

08
Choose one
1 point

You are comparing quotes from several insurers. Which approach makes the prices most meaningfully comparable?

  1. A

    Request quotes with the same coverage amounts, deductibles, and relevant options

  2. B

    Choose the quote with the lowest premium without comparing coverage

  3. C

    Use different deductibles in each quote to see which insurer is cheapest

  4. D

    Compare only the insurer’s name and the policy’s total price

09
Written response
1 point

A covered repair costs $4,000 and the deductible is $1,000. Subject to the policy’s terms and limits, what amount may the insurer pay? Enter the value in dollars as a number, without a currency symbol.

10
Choose all
1 point

Select all statements that accurately describe common features of homeowners or renters insurance.

  1. A

    Homeowners insurance commonly includes coverage for the home.

  2. B

    Renters insurance generally insures the building itself.

  3. C

    Renters insurance generally protects a renter’s belongings.

  4. D

    Homeowners insurance never includes liability coverage.

11
Choose all
1 point

Select all details that a declarations page commonly summarizes.

  1. A

    Named insureds

  2. B

    A guarantee that every possible loss is covered

  3. C

    Policy dates

  4. D

    Coverage amounts and deductibles

  5. E

    A promise that claims will always be paid in full

12
Choose one
1 point

A policyholder receives a written change that modifies the terms of a standard policy. What is this change called?

  1. A

    A deductible paid by the policyholder after a claim

  2. B

    A summary of the insurer’s financial condition

  3. C

    A written addition or change to a standard policy

  4. D

    A separate quote for an unrelated policy

13
Open ended
1 point

A person is choosing coverage for risks that could cause a major financial loss. Explain how they should decide what coverage fits, including how to consider their own ability to pay costs and how to compare policy terms.

14
Written response
1 point

Which type of insurance can replace part of a person’s income if illness or injury prevents them from working, subject to policy terms? Enter the insurance type.

15
Choose one
1 point

A household has a major life change that may affect its risks and financial responsibilities. What is a sensible next step regarding its insurance?

  1. A

    Review coverage only when an insurer raises the premium.

  2. B

    Revisit coverage after a major life change that may alter risks or financial responsibilities.

  3. C

    Keep the same coverage indefinitely so policy terms remain familiar.

  4. D

    Wait until a claim is denied before checking policy exclusions.

16
Choose one
1 point

A renter wants insurance for their belongings and possible liability claims, but does not own the building. Which policy is generally designed for this situation?

  1. A

    A policy that insures the building but not the renter’s belongings

  2. B

    A policy that generally protects the renter’s belongings and may include liability coverage

  3. C

    A policy that guarantees coverage for every loss to the rental unit

  4. D

    A policy that replaces the landlord’s homeowners insurance

17
Choose one
1 point

While checking a policy’s named insureds, dates, coverage amounts, deductibles, and premium, which policy document should the policyholder consult first?

  1. A

    A list of every loss the insurer will cover

  2. B

    A record of all claims the policyholder has made

  3. C

    A summary of important policy details, including coverage amounts and deductibles

  4. D

    A guarantee that the insurer will pay every claim

18
Written response
1 point

A policyholder needs a summary of the named insureds, policy dates, coverage amounts, deductibles, and premium. What policy document should they check?

19
Choose one
1 point

An illness prevents a worker from working for an extended period. Which type of personal insurance can replace part of the worker’s income, subject to policy terms?

  1. A

    Life insurance

  2. B

    Renters insurance

  3. C

    Umbrella insurance

  4. D

    Disability insurance

20
True or false
1 point

True or false: A homeowner in a flood-prone area can assume a standard homeowners policy will pay for flood damage.

  1. A

    True

  2. B

    False