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Free General Insurance Concepts Practice Questions

Iowa Personal Lines exam — 58 practice questions.

Subtopics: Moral hazard, Morale hazard, Waiver, Estoppel, Aleatory contract, Apparent authority, Pure vs speculative risk, Hazard, Peril, Physical hazard, Law of large numbers, Risk avoidance, Risk retention, Risk transfer, Insurable interest, Indemnity, Elements of a contract, Contract of adhesion, Utmost good faith, Representation, Concealment, Warranty, Express authority, Implied authority, Stock vs mutual insurer, Domestic foreign alien, Admitted insurer, Adverse selection, Reinsurance, Underwriting, Loss ratio, Rate regulation goals, Reciprocal insurer, Lloyds of London, Risk retention group, Self-insurance, Surplus lines, Fundamental vs particular risk, Loss exposure, Frequency vs severity, Unilateral contract, Conditional contract, Personal contract, Material misrepresentation, Fiduciary duty, Commingling, Agent vs broker, Rebating, Twisting, Coercion, Defamation, Unfair claims settlement

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Sample questions & answers

1. A moral hazard is best described as:

A dishonest tendency that increases the chance of a loss, such as faking a claim

A moral hazard arises from dishonesty or character that increases the likelihood of a loss, such as filing a false claim.

2. A morale hazard refers to:

Carelessness or indifference to loss because one has insurance

A morale hazard is an attitude of carelessness about loss that arises because the person has insurance.

3. A waiver is best defined as:

The voluntary giving up of a known right

A waiver is the voluntary and intentional surrender of a known legal right.

4. Estoppel generally prevents a party from:

Asserting a right that was previously waived, to another party's detriment

Estoppel bars a party from reasserting a right it gave up when another reasonably relied on that waiver.

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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 Pennsylvania Insurance Department and the exam administrator before relying on it.