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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Iowa Property & Casualty exam — 39 practice questions.

Subtopics: Express authority, Spread of risk, Fraternal benefit society, Risk retention group, Fundamental risk, Frequency and severity, 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, Utmost good faith, Concealment, Warranty, Waiver and estoppel, Subrogation, 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 authority an insurer specifically grants to an agent in the agency contract is:

Express authority

Express authority is the authority specifically granted to the agent in the agency agreement.

2. Insurance works by spreading the risk of loss:

Across a large pool of insureds who pay premiums

Insurance spreads the cost of losses across a large pool of insureds whose premiums fund covered claims.

3. A fraternal benefit society is an organization that:

Provides insurance to members of an affiliated group or lodge

A fraternal benefit society provides insurance to members of an affiliated lodge or social organization.

4. A risk retention group is a type of insurer:

Owned by its members who share similar liability exposures

A risk retention group is owned by members with similar liability exposures who join to insure those risks.

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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.