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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Georgia Accident & Health exam — 46 practice questions.

Subtopics: Insurable interest, Pure risk, Law of large numbers, Adverse selection, Moral hazard, Adhesion, 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, Utmost good faith, Representations, Concealment, Aleatory contract, Contract of adhesion, Speculative risk, Physical 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 an individual health policy, insurable interest must generally exist:

at the time of application

In health insurance the applicant must have an insurable interest in the person to be insured at the time the policy is applied for.

2. Only which type of risk is insurable?

Pure risk

Insurance addresses pure risk, which involves only the chance of loss or no loss, not speculative risk that includes a chance of gain.

3. Insurers predict losses more accurately as the number of similar exposure units increases due to the:

law of large numbers

The law of large numbers allows more reliable loss prediction as the pool of similar risks grows.

4. The tendency of higher-risk individuals to seek insurance more than average risks is:

adverse selection

Adverse selection is the inclination of poorer-than-average risks to seek or keep coverage, which underwriting is designed to control.

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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.