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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

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

Subtopics: Subrogation, Material misrepresentation, Estoppel, Express vs implied authority, Warranty, 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, Unilateral contract, Conditional contract, Express authority, Apparent authority, Fiduciary duty, Reinsurance, Reciprocal insurer, Insurable interest timing

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Sample questions & answers

1. After paying a health claim caused by a third party, an insurer's right to recover from that party is called what?

Subrogation

Subrogation gives the insurer the right to pursue a responsible third party after paying the insured's covered loss.

2. A misrepresentation on an application is significant to underwriting when it is what?

Material to the insurer's decision to issue coverage

A misrepresentation is material when it would have affected the insurer's decision to issue the policy or set its terms.

3. When an insurer is prevented from denying a fact because of its prior conduct, the legal principle is called what?

Estoppel

Estoppel bars a party from asserting a fact that contradicts its earlier conduct on which the other party relied.

4. The authority a producer reasonably appears to have based on the insurer's actions, beyond what is written, is called what?

Apparent authority

Apparent authority arises when the insurer's conduct leads a third party to reasonably believe the producer has authority.

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Practice: General Insurance Concepts

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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.