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  3. Accident & Health
  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Arkansas Accident & Health exam — 45 practice questions.

Subtopics: Risk retention, Adverse selection, Utmost good faith, Indemnity, Law of large numbers, Risk definition, Morale hazard, Peril, Risk transfer, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Representations, Concealment, Aleatory contract, Contract of adhesion, Pure risk, Speculative risk, Physical hazard, Moral hazard, Implied authority, Fiduciary duty, Warranty, Misrepresentation, Waiver, Estoppel, Reciprocal insurer, Fraternal benefit society, Reinsurance, Non-admitted insurer, Alien insurer, Unilateral contract, Conditional contract, Offer and acceptance, Insurable interest

Read the General Insurance Concepts study guide

Sample questions & answers

1. A business that decides to pay minor losses itself rather than insure them is practicing risk:

Retention

Retention is the deliberate decision to pay certain losses out of pocket rather than transferring them to an insurer.

2. Health insurers guard against adverse selection by:

Underwriting and using participation requirements in group plans

Underwriting and group participation requirements help insurers limit adverse selection.

3. An insurance contract is based on utmost good faith, meaning:

Both parties rely on each other's honesty and full disclosure

Utmost good faith means each party relies on the honesty and full disclosure of the other.

4. The principle of indemnity in health expense insurance means the insured:

Should be restored to their pre-loss financial position, not profit

Indemnity seeks to restore the insured to the pre-loss financial position without allowing a profit.

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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.