1. Exam Prep
  2. Illinois
  3. Property & Casualty
  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Illinois Property & Casualty exam — 37 practice questions.

Subtopics: Subrogation, Proximate cause, Insurable interest, Risk management, 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, 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. After paying a claim an insurer's right to recover from the responsible party is:

Subrogation

Subrogation lets the insurer pursue the at-fault party to recover amounts it paid.

2. The unbroken chain of events that leads to a loss is the:

Proximate cause

Proximate cause is the unbroken sequence of events that produces the loss.

3. An applicant has an insurable interest in property when:

They would suffer a financial loss if it were damaged

Insurable interest in property exists when the person would suffer financial loss from its damage.

4. Raising a deductible is an example of risk:

Retention

Choosing to retain more loss through a higher deductible is a form of risk retention.

All Property & Casualty topics

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.