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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Delaware Accident & Health exam — 45 practice questions.

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

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Sample questions & answers

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

Both parties rely on the honesty and full disclosure of the other

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

2. A statement that is guaranteed to be literally true and becomes part of the contract is a:

Warranty

A warranty is guaranteed to be literally true and is part of the contract, unlike a representation believed true.

3. Authority that the public reasonably believes a producer holds because of the insurer's own actions is called:

Apparent authority

Apparent authority arises when the insurer's conduct leads the public to believe the producer has authority, even if not expressly granted.

4. The voluntary giving up of a known legal right by an insurer is known as:

Waiver

Waiver is the intentional and voluntary surrender of a known right by a party such as the insurer.

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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.