ASLI study guide
ASLI · Work through your exam, one topic at a time.
The ASLI is an entry-level insurance licensing-style examination covering the foundational knowledge expected of someone beginning a career in insurance sales or advice. It is aimed at new agents, advisors, bank and agency staff, and career-changers who need a structured grounding in how insurance works before specialising. The ASLI study guide has 6 sections and about 1,590 words.
01General Insurance Principles and Concepts
Insurance is a mechanism for transferring risk from an individual to a pool of many policyholders. The candidate must be able to distinguish pure risk (loss or no loss) from speculative risk (loss, gain, or no loss) and know that only pure risk is insurable.
319 words, about 2 min02Insurance Contract Law and Policy Provisions
An insurance policy is a contract requiring offer, acceptance, consideration, and legal purpose. It has special legal characteristics: it is a contract of adhesion (written by the insurer, interpreted against the drafter), a contract of utmost good faith , and generally aleatory (values exchanged are unequal and depend on chance).
273 words, about 1 min03Life Insurance Products and Underwriting
Know term life (pure protection, no cash value), whole life (permanent, level premium, cash value, guaranteed), universal life (flexible premiums and death benefit, cash value tied to interest), and variable life (cash value in separate accounts tied to investments, requiring a securities license). Understand endowment and annuity concepts, including accumulation and payout phases.
256 words, about 1 min04Health and Accident Insurance
Understand individual , group , and government health coverage. Know the major medical structure: deductible , coinsurance , copayment , out-of-pocket maximum , and benefit limits .
252 words, about 1 min05Property and Casualty Insurance Fundamentals
Know the perils versus risks distinction and the difference between named peril and open peril (all-risk) policies. Understand actual cash value (replacement cost minus depreciation), replacement cost , and functional replacement cost .
232 words, about 1 min06Insurance Regulation and Ethics
Insurance is regulated primarily at the state level through insurance departments headed by a commissioner. Know the role of the NAIC (model laws and coordination, not direct regulation) and the McCarran-Ferguson Act (states regulate insurance; limited federal antitrust exemption).
258 words, about 1 min