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  3. General Lines — Property & Casualty (2-20)
  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Florida General Lines — Property & Casualty (2-20) exam (series 2-20) — 16 practice questions.

Subtopics: Handling risk, Insurer classifications, Adverse selection, Elements of a contract, Insurable risk, Hazards, Definitions, Authority of producers, Legal interpretations

Sample questions & answers

1. Purchasing an insurance policy is an example of which method of handling risk?

Transfer

Insurance transfers the financial consequences of a risk from the insured to the insurer.

2. A mutual insurance company is owned by its:

Policyholders

A mutual insurer is owned by its policyholders, who may receive policy dividends; a stock insurer is owned by stockholders.

3. An insurer domiciled in a country other than the United States is classified as a(n):

Alien insurer

Domestic = same state, foreign = another US state, alien = another country.

4. The tendency of higher-than-average risks to seek or continue insurance more than average risks is called:

Adverse selection

Adverse selection is the selection against the insurer by disproportionately high-risk applicants.

All General Lines — Property & Casualty (2-20) 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 Pennsylvania Insurance Department and the exam administrator before relying on it.