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Free General Insurance Concepts Practice Questions

Alaska Life, Accident & Health exam — 33 practice questions.

Subtopics: Moral hazard, Risk avoidance, Insurable risk, Risk pooling, Speculative risk, Handling risk, Hazards, Definitions, Insurer classifications, Adverse selection, Elements of a contract, Legal interpretations, Law of large numbers, Indemnity, Aleatory contract, Contract of adhesion, Utmost good faith, Unilateral contract, Conditional contract, Express authority, Apparent authority, Fiduciary duty, Reinsurance, Reciprocal insurer, Estoppel, Insurable interest timing

Read the General Insurance Concepts study guide

Sample questions & answers

1. A moral hazard is best described as:

A dishonest tendency that increases the likelihood of a loss, such as faking a claim

A moral hazard is a dishonest tendency that increases the chance of a loss such as a fraudulent claim.

2. Choosing not to engage in an activity to eliminate its risk entirely is risk:

Avoidance

Avoiding an activity altogether eliminates its risk and is called risk avoidance.

3. One characteristic of an insurable risk is that the loss should be:

Definite, measurable, and due to chance

An insurable loss should be definite, measurable, and the result of chance.

4. Insurance works on the principle of pooling so that:

The losses of the few are shared among the premiums of the many

Pooling spreads the losses of the few across the premiums contributed by the many.

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Practice: General Insurance Concepts

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.