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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Georgia Property & Casualty exam — 39 practice questions.

Subtopics: Indemnity, Insurable interest timing, Subrogation, Morale hazard, Utmost good faith, Actual cash value, Handling risk, Insurer classifications, Adverse selection, Elements of a contract, Insurable risk, Hazards, Definitions, Authority of producers, Legal interpretations, Law of large numbers, Principle of indemnity, Concealment, Warranty, Waiver and estoppel, Reinsurance, Admitted vs nonadmitted, Domestic foreign alien, Aleatory contract, Contract of adhesion, Unilateral contract, Apparent authority, Rebating, Risk pooling, Pro-rata cancellation

Read the General Insurance Concepts study guide

Sample questions & answers

1. The principle of indemnity in property insurance means the insured should:

be restored to approximately the same financial position as before the loss

Indemnity seeks to restore the insured to roughly the same financial position held before the loss, not to allow a gain.

2. For property insurance, insurable interest must exist:

at the time of the loss

In property insurance, the insured must have an insurable interest at the time of loss to collect.

3. After paying a property claim, an insurer's right to pursue the responsible third party is:

subrogation

Subrogation lets the insurer recover its payment from the party legally responsible for the loss.

4. An insured's carelessness because they have insurance is an example of:

morale hazard

Morale hazard is indifference to loss arising from the presence of insurance.

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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.