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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Arizona Accident & Health exam — 46 practice questions.

Subtopics: Insurable interest, Adverse selection, Indemnity, Representations, Utmost good faith, Aleatory contract, Risk definition, Morale hazard, Peril, Risk transfer, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Concealment, Contract of adhesion, Pure risk, Speculative risk, Law of large numbers, 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

Read the General Insurance Concepts study guide

Sample questions & answers

1. For a health insurance policy, the applicant ordinarily must have an insurable interest in:

The person whose health is insured

Insurable interest in health coverage exists in oneself and certain close relationships, preventing wagering contracts.

2. Adverse selection in health insurance refers to the tendency of:

Those with greater likelihood of loss to seek coverage more than others

Adverse selection is the disproportionate tendency of higher-risk individuals to seek or keep coverage, which insurers manage through underwriting.

3. The principle of indemnity in insurance is intended to:

Restore the insured to their pre-loss financial position

Indemnity seeks to make the insured whole without allowing financial gain from a covered loss.

4. A statement made by an applicant on a health application that is believed true to the best of their knowledge is a:

Representation

Application answers are generally representations, statements believed true, rather than absolute warranties.

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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.