215 Insurance License Exam Questions and Answers | Latest Version | 2025/2026 | Correct & Verified

215 Insurance License Exam Questions and Answers | Latest Version | 2025/2026 | Correct & Verified What is an endorsement? A policy change or addition What is the duty of utmost good faith? Requirement for honesty from both insurer and insured What is fraud in insurance? Intentional misrepresentation for financial gain What is a cancellation? Termination of a policy before its expiration What is a nonrenewal? Decision not to renew a policy at expiration What is a grace period? Extra time to pay a premium without losing coverage What is a coverage limit? 2 Maximum amount the insurer will pay What is a policy term? The length of time coverage is in force What is a loss ratio? Claims paid compared to premiums collected What is an adjuster? A person who investigates and settles claims What is a policyholder in an insurance contract? The person or entity that owns the insurance policy What does a premium represent? The amount paid to keep insurance coverage active What is risk in insurance terms? The possibility of loss What does indemnity mean in insurance? Restoring the insured to their financial position before loss 3 What is an insurable interest? A financial or legal interest in the insured item or life When must insurable interest exist for life insurance? At the time the policy is issued What is a peril? A cause of loss What is a hazard? A condition that increases the chance of loss What is an exclusion in an insurance policy? A loss or situation not covered What is a deductible? The amount the insured pays before coverage applies What is underwriting? The process of evaluating risk and setting premiums 4 What is a binder in insurance? Temporary proof of coverage What does a declaration page show? Key policy details such as coverage and limits What is a claim? A request for payment after a covered loss What does subrogation allow an insurer to do?