Practice Test Geeks(CU) Certified Underwriter Practice Test
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Insurance Products & Coverage Types Flashcards

7 cards from real CU practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Insurance Products & Coverage Types flashcards as text

  1. Which type of annuity contract guarantees a fixed interest rate during the accumulation phase, shielding the owner from market risk?

    Answer: Fixed annuity

    A fixed annuity credits a predetermined interest rate set by the insurer, providing predictable growth without market exposure.

  2. Under a Workers' Compensation policy, Part Two — Employers Liability covers:

    Answer: Lawsuits by employees alleging employer negligence beyond statutory limits

    Employers Liability (Part Two) covers common-law suits by employees or their families that fall outside the exclusive-remedy provisions of workers' comp statutes.

  3. A 'floater' or 'inland marine' policy is BEST suited to insure:

    Answer: Scheduled high-value items that move from location to location

    Inland marine (floater) policies cover property that is mobile or in transit, such as jewelry, cameras, or contractor's equipment.

  4. The 'replacement cost' valuation method in a property policy differs from 'actual cash value' (ACV) because replacement cost:

    Answer: Pays the cost to repair or replace without a depreciation deduction

    Replacement cost pays to restore property to its pre-loss condition without subtracting depreciation, while ACV deducts for age and wear.

  5. Professional Liability (Errors & Omissions) insurance is specifically designed to cover claims arising from:

    Answer: Negligent acts, errors, or omissions in professional services

    E&O policies respond to claims alleging a professional failed to perform services with the expected standard of care.

  6. Which feature of a Universal Life policy distinguishes it from Whole Life?

    Answer: Premium payments and death benefit amounts are flexible within limits

    Universal life offers adjustable premiums and death benefits, allowing policyholders to vary payments as their financial needs change.

  7. A 'surplus lines' insurer differs from an admitted insurer in that a surplus lines insurer:

    Answer: Is not licensed by the state but can write risks that admitted markets decline

    Surplus lines carriers operate on a non-admitted basis, writing hard-to-place risks without rate/form approval requirements, and generally lack guaranty fund protection.