Free practice test

Insurance Agent Practice Test

Check what you know about the insurance agent job with 15 free questions and instant explanations.

Updated By the Career Education Institute Curriculum Team
About this practice test

15 multiple-choice questions on insurance agent knowledge, safety and vocabulary. Submit to see your score and explanations, or open any question’s answer as you go. Nothing is saved or shared.

Question 1 of 15A premium is:
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Answer: The price of a policy. Premiums buy coverage.

Question 2 of 15A deductible is paid by:
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Answer: The insured. The insured pays first.

Question 3 of 15Independent agents:
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Answer: Represent several insurers. They offer choices.

Question 4 of 15A binder is:
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Answer: Temporary proof of coverage. It provides temporary coverage.

Question 5 of 15Agents must be licensed by:
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Answer: Each state where they sell. States license agents.

Question 6 of 15Which term matches this definition: “Life insurance for a set period.”
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Answer: Term life. Term life: Life insurance for a set period.

Question 7 of 15What does “Umbrella policy” mean?
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Answer: Extra liability coverage.. Umbrella policy: Extra liability coverage.

Question 8 of 15Which term matches this definition: “Temporary proof of coverage.”
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Answer: Binder. Binder: Temporary proof of coverage.

Question 9 of 15What does “Independent agent” mean?
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Answer: An agent who represents several insurers.. Independent agent: An agent who represents several insurers.

Question 10 of 15Which term matches this definition: “An agent’s client portfolio.”
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Answer: Book of business. Book of business: An agent’s client portfolio.

Question 11 of 15What does “Premium” mean?
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Answer: The price of an insurance policy.. Premium: The price of an insurance policy.

Question 12 of 15Which term matches this definition: “An add-on to a policy.”
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Answer: Rider. Rider: An add-on to a policy.

Question 13 of 15What does “Policy limit” mean?
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Answer: The maximum the insurer pays.. Policy limit: The maximum the insurer pays.

Question 14 of 15Which term matches this definition: “Protection against claims by others.”
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Answer: Liability coverage. Liability coverage: Protection against claims by others.

Question 15 of 15What does “Whole life” mean?
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Answer: Permanent life insurance with cash value.. Whole life: Permanent life insurance with cash value.

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