1. Exam Prep
  2. Arkansas
  3. Personal Lines
  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Arkansas Personal Lines exam — 58 practice questions.

Subtopics: Physical hazard, Loss exposure, Insurable risk, Risk reduction, Warranty, Negligence, Pure vs speculative risk, Hazard, Peril, Moral hazard, Morale 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, 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, Unilateral contract, Conditional contract, Personal 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:

A tangible condition, such as faulty wiring, that increases the chance of loss

A physical hazard is a tangible condition, such as faulty wiring, that increases the chance or severity of loss.

2. A loss exposure is best described as:

A condition or situation that presents the possibility of a loss

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

3. A characteristic of an ideally insurable risk is that the loss must be:

Definite, measurable, and accidental

An ideally insurable loss is definite, measurable, and accidental, among other characteristics.

4. Installing smoke detectors and deadbolt locks is an example of risk:

Reduction

Taking steps to lower the chance or severity of loss, such as installing smoke detectors, is risk reduction.

All Personal Lines topics

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.