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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

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

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

Read the General Insurance Concepts study guide

Sample questions & answers

1. The principle that allows an insurer that has paid a claim to pursue a negligent third party for reimbursement is:

Subrogation

Subrogation lets the insurer recover from a responsible third party after paying the insured's claim.

2. The principle of indemnity is intended to:

Restore the insured to the financial position held before a loss, without profit

Indemnity aims to restore the insured to the same financial position as before the loss, without gain.

3. When an insurer is prevented from denying a fact because it previously acted as though the fact were true, this is:

Estoppel

Estoppel bars a party from asserting a fact that contradicts its earlier conduct that another party relied upon.

4. A fact that would influence an insurer's decision to issue a policy or set the premium is a:

Material fact

A material fact is information that would affect the insurer's underwriting or pricing decision.

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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.