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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Iowa Accident & Health exam — 45 practice questions.

Subtopics: Indemnity, Insurable interest, Mutual insurer, Risk retention, Concealment, Risk definition, Morale hazard, Peril, Risk transfer, Adverse selection, Stock insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Utmost good faith, Representations, Aleatory contract, Contract of adhesion, Pure risk, Speculative risk, Law of large numbers, Physical hazard, Moral 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. The principle of indemnity in health insurance reimbursement means the insured should:

Be restored to the financial position before the loss without profiting

Indemnity seeks to restore the insured to the pre-loss financial position without allowing a profit from the loss.

2. Insurable interest in a health insurance policy on oneself:

Is presumed because a person has an insurable interest in their own health

A person is presumed to have an insurable interest in their own life and health.

3. An insurance company owned by its policyholders is a:

Mutual insurer

A mutual insurer is owned by its policyowners rather than by stockholders.

4. Choosing a higher deductible to keep a small portion of risk is an example of risk:

Retention

Accepting a higher deductible is a form of risk retention because the insured keeps part of the potential loss.

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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.