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Free General Insurance Concepts Practice Questions

Alaska Personal Lines exam — 58 practice questions.

Subtopics: Physical hazard, Morale hazard, Risk reduction, Loss exposure, Unilateral contract, Personal contract, Pure vs speculative risk, Hazard, Peril, Moral hazard, Law of large numbers, Risk avoidance, Risk retention, Risk transfer, Insurable interest, Indemnity, Elements of a contract, Contract of adhesion, Aleatory contract, Utmost good faith, Representation, Concealment, Warranty, Express authority, Apparent authority, Implied authority, Stock vs mutual insurer, Domestic foreign alien, Admitted insurer, Estoppel, Adverse selection, Reinsurance, Underwriting, Loss ratio, Rate regulation goals, Reciprocal insurer, Lloyds of London, Risk retention group, Self-insurance, Surplus lines, Fundamental vs particular risk, Frequency vs severity, Conditional contract, Waiver, Material misrepresentation, Fiduciary duty, Commingling, Agent vs broker, Rebating, Twisting, Coercion, Defamation, Unfair claims settlement

Read the General Insurance Concepts study guide

Sample questions & answers

1. A physical hazard is best described as:

A tangible condition such as icy steps that increases the chance of loss

A physical hazard is a tangible condition such as icy steps that increases the chance of a loss.

2. A morale hazard refers to:

A careless attitude because insurance exists that increases the chance of loss

A morale hazard is carelessness arising because insurance exists, increasing the chance of loss.

3. Installing smoke detectors and deadbolts to lessen the severity or chance of loss is an example of risk:

Reduction

Taking steps to lessen the chance or severity of loss is risk reduction or loss control.

4. A loss exposure is best described as:

A condition or situation that presents the possibility of a loss

A loss exposure is a condition or situation that presents the possibility of a loss.

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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.