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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Alabama Property & Casualty exam — 39 practice questions.

Subtopics: Elements of insurable risk, Indemnity, Insurable interest in property, Estoppel, Waiver, Reasonable expectations, Handling risk, Insurer classifications, Adverse selection, Elements of a contract, Insurable risk, Hazards, Definitions, Authority of producers, Legal interpretations, Law of large numbers, Principle of indemnity, Utmost good faith, Concealment, Warranty, Waiver and estoppel, Subrogation, Reinsurance, Admitted vs nonadmitted, Domestic foreign alien, Aleatory contract, Contract of adhesion, Unilateral contract, Apparent authority, Rebating, Risk pooling, Pro-rata cancellation

Read the General Insurance Concepts study guide

Sample questions & answers

1. An ideally insurable risk should generally be:

Measurable, definite, and due to chance

Insurable risks should involve losses that are definite, measurable, fortuitous, and not catastrophic to the insurer.

2. The doctrine of indemnity prevents an insured from:

Profiting from an insured loss

Indemnity restores but does not enrich the insured, preventing profit from a loss.

3. An insured has insurable interest in property when they would suffer:

Financial loss if the property is damaged or destroyed

Insurable interest exists when the insured would suffer a financial loss from damage to the property.

4. Estoppel prevents a party from:

Asserting a right that contradicts its own prior conduct that another relied on

Estoppel bars a party from denying a fact or right after its conduct led another to reasonably rely on it.

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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.