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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Illinois Accident & Health exam — 44 practice questions.

Subtopics: Pure risk, Insurable risk, Physical hazard, Indemnity, Risk definition, Morale hazard, Peril, Risk transfer, Adverse selection, 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, Speculative risk, Law of large numbers, 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. Pure risk involves:

Only the chance of loss or no loss

Pure risk involves only the possibility of loss or no loss and is the type insurers cover.

2. An insurable risk should be:

Measurable and due to chance

An insurable risk should be measurable definite and the result of chance not intentional acts.

3. An icy sidewalk is an example of a:

Physical hazard

A physical hazard is a tangible condition that increases the chance of loss.

4. The principle of indemnity seeks to:

Restore the insured to the pre-loss financial position

Indemnity aims to restore the insured to the financial position held just before the 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.