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  2. Colorado
  3. Accident & Health
  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Colorado Accident & Health exam — 45 practice questions.

Subtopics: Risk transfer, Adverse selection, Utmost good faith, Representation, Law of large numbers, Risk definition, Morale hazard, Peril, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Indemnity, 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. Purchasing health insurance is an example of which risk management technique?

Transfer

Buying insurance transfers the financial consequences of a loss to the insurer, which is the risk transfer technique.

2. Adverse selection in health insurance is the tendency of:

Higher-risk individuals to seek coverage more than lower-risk individuals

Adverse selection is the tendency of higher-risk individuals to seek or keep coverage, which underwriting is designed to control.

3. The principle of utmost good faith requires that:

Both parties deal honestly and disclose material facts

Insurance is a contract of utmost good faith, requiring honesty and full disclosure of material facts by both parties.

4. A statement an applicant believes to be true to the best of their knowledge is a:

Representation

A representation is a statement believed true to the best of the applicant's knowledge, as opposed to a guaranteed warranty.

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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.