Insurance NABTEB past questions and answers

Insurance NABTEB past questions and answers

What does "Deductible" mean in insurance?

A) The total coverage amount

B) The amount you pay before insurance kicks in

C) The premium amount

D) The insurer's profit margin

Answer: B) The amount you pay before insurance kicks in

Which type of insurance typically covers damage to your car from accidents?

A) Health insurance

B) Life insurance

C) Home insurance

D) Auto insurance

Answer: D) Auto insurance

What does "Premium" refer to in insurance?

A) The insurer's customer service

B) The amount you pay for insurance coverage

C) The maximum coverage amount

D) The insurance claim process

Answer: B) The amount you pay for insurance coverage

Which type of insurance can cover damage or loss of personal belongings due to theft or fire?

A) Travel insurance

B) Renters insurance

C) Pet insurance

D) Disability insurance

Answer: B) Renters insurance

What is "Liability" insurance primarily for?

A) Protecting against property damage

B) Covering medical expenses

C) Covering your own vehicle damage

D) Protecting against legal claims

Answer: D) Protecting against legal claims

Which type of insurance provides income in the event of a disability preventing you from working?

A) Disability insurance

B) Life insurance

C) Home insurance

D) Health insurance

Answer: A) Disability insurance

What does "Claim" mean in the context of insurance?

A) The policyholder's responsibility

B) An official request for coverage

C) The insurer's profit

D) The policy coverage amount

Answer: B) An official request for coverage

What is a "Beneficiary" in life insurance?

A) The insurance company

B) The person who owns the policy

C) The person(s) who receive the policy payout

D) The insurance agent

Answer: C) The person(s) who receive the policy payout

Which type of insurance covers medical expenses for illnesses and injuries?

A) Auto insurance

B) Life insurance

C) Health insurance

D) Travel insurance

Answer: C) Health insurance

What does "Underwriting" mean in insurance?

A) The process of evaluating risk

B) Claim investigation

C) Policy cancellation

D) Premium calculation

Answer: A) The process of evaluating risk

Which type of insurance typically covers damage to a home's structure from natural disasters like hurricanes or earthquakes?

A) Homeowners insurance

B) Flood insurance

C) Earthquake insurance

D) Renters insurance

Answer: C) Earthquake insurance

What is "Term Life Insurance"?

A) Life insurance for a specific period

B) Life insurance for senior citizens

C) Life insurance with investment options

D) Life insurance for chronic illnesses

Answer: A) Life insurance for a specific period

What is an "Insurance Policy"?

A) A legal contract between the insurer and insured

B) A payment plan for premiums

C) A claim form

D) A certificate of insurance

Answer: A) A legal contract between the insurer and insured

Which type of insurance provides coverage for medical care while traveling abroad?

A) Travel insurance

B) Health insurance

C) International insurance

D) Foreign coverage insurance

Answer: A) Travel insurance

What does "Exclusion" mean in insurance policies?

A) Situations where coverage is not provided

B) The deductible amount

C) Additional coverage options

D) Claim settlement process

Answer: A) Situations where coverage is not provided

Which type of insurance covers damage or loss of property due to fire, theft, or other covered perils?

A) Health insurance

B) Life insurance

C) Homeowners insurance

D) Disability insurance

Answer: C) Homeowners insurance

What does "Renewal" mean in insurance?

A) Switching insurance companies

B) Extending the policy period

C) Changing policy coverage

D) Claim settlement process

Answer: B) Extending the policy period

Which type of insurance provides income to beneficiaries upon the policyholder's death?

A) Health insurance

B) Disability insurance

C) Life insurance

D) Renters insurance

Answer: C) Life insurance

What is "Umbrella Insurance"?

A) Insurance for rainy weather

B) Additional liability coverage beyond other policies

C) Travel insurance for extreme conditions

D) Insurance for outdoor activities

Answer: B) Additional liability coverage beyond other policies

What is "Co-payment" in health insurance?

A) The total cost of the policy

B) A fixed amount paid by the insured for each medical service

C) The portion of a claim the insurer pays

D) The deductible amount for prescriptions

Answer: B) A fixed amount paid by the insured for each medical service