Insurance Cheat Sheet 2026

The 30 highest-yield Insurance facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which document must an insurer file with the state insurance department before using a new policy form in most states? → Policy form filing
2. What distinguishes a 'stock insurance company' from a 'mutual insurance company'? → Stock companies are owned by shareholders; mutual companies are owned by policyholders
3. State 'file and use' rate regulation means that insurers must: → File new rates and may immediately begin using them
4. Why is documentation important in Insurance risk management? → It creates an audit trail, supports decision-making, and demonstrates due diligence
5. Which of the following best describes 'soft fraud' in insurance? → Exaggerating a legitimate claim to receive a higher payout than deserved
6. What does 'external validity' mean in the context of an insurance research study? → The extent to which findings can be generalized beyond the study sample
7. What is the primary purpose of an 'acknowledgment of claim' notice sent to a policyholder? → To confirm receipt and begin the claims process, reducing policyholder anxiety
8. How should Insurance professionals prioritize identified risks? → Based on likelihood of occurrence combined with severity of potential impact
9. A health insurance policy's 'elimination period' is most analogous to which life insurance concept? → Waiting period / deductible in time
10. The 'insuring agreement' in an insurance policy: → Describes the insurer's promise to pay covered losses and the scope of coverage provided
11. Which of the following best describes a 'peril' in insurance terminology? → The direct cause of a loss
12. An insurer's mobile app allows policyholders to file claims via photo submission. What technology underpins automated damage assessment in this workflow? → Computer vision and machine learning models trained on damage images
13. Which term describes the practice of insurers selling coverage entirely online without agent involvement? → Direct-to-consumer (DTC) distribution
14. The cost of continuing insurance for a motorist is → premium
15. In a systematic literature review for insurance topics, what is the primary purpose of the PRISMA checklist? → To provide transparent reporting standards for systematic reviews and meta-analyses
16. A business purchases an umbrella liability policy to cover losses exceeding its primary policy limits. This is an example of: → Excess risk transfer
17. Which technology allows smart home devices to automatically alert an insurer when a water leak is detected? → Internet of Things (IoT) sensors integrated with insurer platforms
18. What is the purpose of a 'salvage' operation in property insurance claims? → To recover and sell damaged property in order to reduce the total loss amount paid
19. What triggers coverage under a 'builders risk' insurance policy? → A structure is under construction or renovation
20. What does a '100/300/100' liability policy limit mean? → $100K per person / $300K per accident / $100K property damage
21. Which federal law requires large employers (50+ full-time equivalent employees) to offer affordable health insurance coverage or face potential penalties? → ACA Employer Shared Responsibility Provision
22. Which of the following perils is excluded from a commercial property coverage component that has the basic causes of loss form attached? → Volcanic eruption
23. What are the conditions under which traditional whole life insurance policies will give coverage? → It is for the entire life of the insured
24. Which of the following best describes 'inter-rater reliability' in an insurance QA context? → The consistency of results when different auditors review the same file
25. What is the purpose of a 'declarations page' in an insurance policy? → To summarize key policy details such as coverage limits, premiums, and named insured
26. What is the primary purpose of a file review audit in insurance quality assurance? → To verify that claim files comply with handling guidelines and regulations
27. Which of the following describes the policy territory under the majority of property insurance policies? → The United States, its territories and possessions, and Canada
28. In insurance law, 'waiver' occurs when: → The insurer voluntarily relinquishes a known contractual right to deny or limit coverage
29. What is an 'exclusion' in an insurance policy? → A specific condition, peril, or circumstance not covered by the policy
30. Which of the following is an example of a physical hazard? → Icy roads that increase accident likelihood