FBLA Insurance & Risk Management practice test
Insurance & Risk Management covers how individuals and businesses identify, manage, and transfer risk, including property, liability, life, and health insurance.
Topics on the FBLA Insurance & Risk Management test
- Risk identification and management techniques
- Insurance principles and contract terms
- Property and casualty insurance
- Liability insurance
- Life, health, and disability insurance
- Insurance regulation and careers
Free FBLA Insurance & Risk Management practice questions and answers
Try each question before opening the answer. Every AI practice test explains its answers the same way.
Question 1
Buying an insurance policy is an example of which risk management technique?
- ARisk avoidance
- BRisk retention
- CRisk transfer
- DRisk reduction
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Answer: C. Risk transfer
Insurance shifts the financial consequences of a loss from the insured to the insurer in exchange for a premium.
Question 2
In an insurance policy, the deductible is:
- AThe amount the insured pays before the insurer pays a claim
- BThe monthly premium
- CThe most the policy will ever pay
- DA refund for filing no claims
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Answer: A. The amount the insured pays before the insurer pays a claim
A higher deductible means the insured covers more of each loss, which usually lowers the premium.
Question 3
The principle that insurance should restore the insured to their financial position before a loss, without letting them profit, is:
- ASubrogation
- BIndemnity
- CUtmost good faith
- DInsurable interest
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Answer: B. Indemnity
Indemnity limits a payout to the actual loss, so no one profits from a claim.
How to study for FBLA Insurance & Risk Management
Most questions turn on vocabulary: premium, deductible, coinsurance, indemnity, subrogation. Learn each term with a one-line example.
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Start practicing freeFBLA Insurance & Risk Management FAQ
How many questions are on the FBLA Insurance & Risk Management test?
Insurance & Risk Management is an objective test event. Under the current guidelines, FBLA objective tests are typically 100 multiple-choice questions in 50 minutes. Check the official FBLA competitive event guidelines for your season and conference.
What topics are on the FBLA Insurance & Risk Management test?
Expect questions on risk identification and management techniques; insurance principles and contract terms; property and casualty insurance; liability insurance; life, health, and disability insurance; and insurance regulation and careers.
Are these official FBLA Insurance & Risk Management questions?
No. The sample questions are original and written in the style of FBLA objective tests. TierOne is an independent study aid and is not affiliated with FBLA.