Free practice test

Insurance Underwriter Practice Test

Check what you know about the insurance underwriter 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 underwriter 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 loss run shows:
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Answer: Claims history. History.

Question 2 of 15Premium is:
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Answer: Price of insurance. Price.

Question 3 of 15Reinsurance is:
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Answer: Insurance for insurers. Risk transfer.

Question 4 of 15Loss ratio compares:
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Answer: Claims to premiums. Profitability.

Question 5 of 15An exclusion is:
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Answer: What’s not covered. Limits.

Question 6 of 15Which term matches this definition: “Potential for loss.”
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Answer: Exposure. Exposure: Potential for loss.

Question 7 of 15What does “Declination” mean?
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Answer: Refusing coverage.. Declination: Refusing coverage.

Question 8 of 15Which term matches this definition: “What’s not covered.”
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Answer: Exclusion. Exclusion: What’s not covered.

Question 9 of 15What does “Endorsement” mean?
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Answer: Policy change.. Endorsement: Policy change.

Question 10 of 15Which term matches this definition: “Evaluating insurance risk.”
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Answer: Underwriting. Underwriting: Evaluating insurance risk.

Question 11 of 15What does “Submission” mean?
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Answer: Application package.. Submission: Application package.

Question 12 of 15Which term matches this definition: “Risks a company wants.”
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Answer: Risk appetite. Risk appetite: Risks a company wants.

Question 13 of 15What does “Loss ratio” mean?
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Answer: Claims compared to premiums.. Loss ratio: Claims compared to premiums.

Question 14 of 15Which term matches this definition: “Agent representing the buyer.”
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Answer: Broker. Broker: Agent representing the buyer.

Question 15 of 15What does “Binder” mean?
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Answer: Temporary proof of coverage.. Binder: Temporary proof of coverage.

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