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Free General Insurance Concepts Practice Questions

Georgia Life exam — 46 practice questions.

Subtopics: Insurable interest, Law of large numbers, Adverse selection, Representations, Utmost good faith, Adhesion, Definition of risk, Hazard, Peril, Handling risk, Retention, Insurable risk, Stock insurer, Mutual insurer, Admitted insurer, Domestic foreign alien, Consideration, Legal purpose, Competent parties, Offer and acceptance, Express authority, Apparent authority, Indemnity, Concealment, Pure vs speculative risk, Moral hazard, Morale hazard, Physical hazard, Implied authority, Fiduciary duty, Aleatory contract, Contract of adhesion, Unilateral contract, Conditional contract, Warranty, Waiver, Estoppel, Reciprocal insurer, Fraternal benefit society, Reinsurance, Surplus lines insurer, Self-insurance

Read the General Insurance Concepts study guide

Sample questions & answers

1. For a life insurance policy, when must insurable interest exist?

At the time of application and policy inception

In life insurance, insurable interest must exist at the inception of the contract, not at the time of loss.

2. The principle that larger groups produce more predictable loss experience is the:

Law of large numbers

The law of large numbers lets insurers predict losses more accurately as the number of similar exposures increases.

3. The tendency of higher-than-average risks to seek or keep insurance is:

Adverse selection

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

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

Representations

Representations are statements believed true; they need only be substantially true, unlike warranties which must be literally true.

All Life 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 Insurance Department and the exam administrator before relying on it.