1. Exam Prep
  2. Maryland
  3. Personal Lines
  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Maryland Personal Lines exam — 58 practice questions.

Subtopics: Risk retention, Risk avoidance, Reinsurance, Offer and acceptance, Legal purpose, Competent parties, Pure vs speculative risk, Hazard, Peril, Moral hazard, Morale hazard, Physical hazard, Law of large numbers, Risk transfer, Insurable interest, Indemnity, Elements of a contract, Contract of adhesion, Aleatory contract, Utmost good faith, Representation, Concealment, Warranty, Express authority, Apparent authority, Implied authority, Stock vs mutual insurer, Domestic foreign alien, Admitted insurer, Estoppel, Adverse selection, Underwriting, Loss ratio, Rate regulation goals, Reciprocal insurer, Lloyds of London, Risk retention group, Self-insurance, Surplus lines, Fundamental vs particular risk, Loss exposure, Frequency vs severity, Unilateral contract, Conditional contract, Personal contract, Waiver, Material misrepresentation, Fiduciary duty, Commingling, Agent vs broker, Rebating, Twisting, Coercion, Defamation, Unfair claims settlement

Read the General Insurance Concepts study guide

Sample questions & answers

1. Choosing a deductible or self-insuring part of a loss is an example of:

Risk retention

Risk retention means keeping all or part of a risk yourself, as with deductibles or self-insurance.

2. Deciding not to engage in an activity at all to eliminate its risk is:

Risk avoidance

Risk avoidance eliminates the possibility of a particular loss by not undertaking the activity that creates it.

3. Reinsurance is best described as:

Insurance purchased by an insurer to transfer part of its risk

Reinsurance is coverage an insurer buys from another insurer to spread or limit its own exposure to loss.

4. In forming an insurance contract, the applicant's submission of an application with premium generally represents the:

Offer, which the insurer may accept

Submitting a completed application with the initial premium is generally the offer; the insurer's issuance of the policy is the acceptance.

All Personal Lines 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.