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  3. Life, Accident & Health
  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Illinois Life, Accident & Health exam — 33 practice questions.

Subtopics: Risk transfer, Reinsurance, Unilateral contract, Warranty, Conditions, Handling risk, Insurable risk, Hazards, Definitions, Insurer classifications, Adverse selection, Elements of a contract, Legal interpretations, Law of large numbers, Indemnity, Aleatory contract, Contract of adhesion, Utmost good faith, Conditional contract, Express authority, Apparent authority, Fiduciary duty, Reciprocal insurer, Estoppel, Insurable interest timing

Read the General Insurance Concepts study guide

Sample questions & answers

1. Purchasing insurance is a method of handling risk by:

Transferring it to the insurer

Insurance transfers the financial consequences of a risk from the insured to the insurer.

2. Reinsurance is insurance purchased by:

An insurer to transfer part of its risk to another insurer

Reinsurance lets an insurer transfer part of its risk to another insurer.

3. An insurance policy is a unilateral contract because:

Only the insurer makes a legally enforceable promise

In a unilateral contract only the insurer makes a legally enforceable promise to pay.

4. A statement guaranteed to be literally true and made part of the contract is a:

Warranty

A warranty is a statement guaranteed to be true and made part of the contract.

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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.