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

Free General Insurance Concepts Practice Questions

Massachusetts Property & Casualty exam — 36 practice questions.

Subtopics: Proximate cause, Coinsurance, Deductible, 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, Subrogation, 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. The unbroken chain of events that leads to and causes a covered loss is the:

Proximate cause

Proximate cause is the unbroken sequence of events that produces the loss without intervening cause.

2. A property coinsurance clause requires the insured to carry insurance equal to a stated percentage of value or face:

A penalty applied at the time of a partial loss

If the insured carries less than the required percentage, a coinsurance penalty reduces the payment on a partial loss.

3. The portion of a covered property loss the insured pays before the insurer pays is the:

Deductible

A deductible is the amount the insured retains and pays on a covered loss before the insurer's payment applies.

4. Purchasing an insurance policy is an example of which method of handling risk?

Transfer

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

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.