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- Life, Accident & Health
- General Insurance Concepts
Free General Insurance Concepts Practice Questions
Georgia Life, Accident & Health exam — 34 practice questions.
Subtopics: Peril, Physical hazard, Mutual insurer, Aleatory contract, Apparent authority, Reinsurance, Handling risk, Insurable risk, Hazards, Definitions, Insurer classifications, Adverse selection, Elements of a contract, Legal interpretations, Law of large numbers, Indemnity, Contract of adhesion, Utmost good faith, Unilateral contract, Conditional contract, Express authority, Fiduciary duty, Reciprocal insurer, Estoppel, Insurable interest timing
Read the General Insurance Concepts study guide
Sample questions & answers
1. In insurance terminology, a peril is:
the cause of a loss, such as fire or accident
A peril is the actual cause of a loss; a hazard is a condition that increases the likelihood or severity of a peril.
2. Icy steps at an insured's home are an example of a:
physical hazard
A physical hazard is a tangible condition that increases the chance of loss, such as icy steps.
3. A mutual insurance company is owned by:
its policyholders
A mutual insurer is owned by its policyholders, who may receive dividends, while a stock insurer is owned by shareholders.
4. Insurance is an aleatory contract because:
the dollar amounts exchanged by the parties may be unequal depending on chance
In an aleatory contract the values exchanged are unequal and depend on an uncertain event, such as a covered loss.
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Practice: General Insurance Concepts
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