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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Idaho Accident & Health exam — 45 practice questions.

Subtopics: Risk, Peril, Adverse selection, Indemnity, Risk transfer, Risk definition, Morale hazard, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Utmost good faith, Representations, Concealment, 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, Insurable interest

Read the General Insurance Concepts study guide

Sample questions & answers

1. In insurance, the term risk most accurately refers to:

The uncertainty of loss

Risk is the uncertainty regarding loss, which is the basis for transferring it to an insurer.

2. Which term identifies the actual cause of a loss, such as a sickness or an injury?

Peril

A peril is the cause of a loss, such as sickness, injury, or accident.

3. An insurer's concern that mostly higher-risk individuals will seek to buy health coverage describes the problem of:

Adverse selection

Adverse selection is the tendency of higher-risk individuals to seek coverage more than average risks, which insurers must manage.

4. The principle of indemnity in insurance generally means the insured should:

Be restored to the financial position held before the loss without profiting

The principle of indemnity aims to restore the insured to the pre-loss financial position without allowing a profit.

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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.