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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Connecticut Accident & Health exam — 45 practice questions.

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

Read the General Insurance Concepts study guide

Sample questions & answers

1. Pure risk, which is the only type generally insurable, involves:

Only the chance of loss or no loss

Pure risk involves only the possibility of loss or no loss and is insurable, unlike speculative risk.

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

Less healthy individuals to seek coverage more than healthier ones

Adverse selection is the tendency of higher-risk individuals to seek or retain coverage more than average risks.

3. Statements an applicant believes to be true to the best of their knowledge are called:

Representations

Representations are statements believed true to the best of the applicant's knowledge, unlike warranties that must be literally true.

4. The principle that both parties to an insurance contract must deal honestly and disclose material facts is called:

Utmost good faith

Utmost good faith requires both parties to deal honestly and disclose material facts when forming the contract.

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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.