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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Maine Accident & Health exam — 45 practice questions.

Subtopics: Risk transfer, Hazard, Peril, Law of large numbers, Indemnity, Risk definition, Morale hazard, Adverse selection, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, Consideration, Legal purpose, Competent parties, Express authority, Apparent authority, Utmost good faith, Representations, Concealment, Aleatory contract, Contract of adhesion, Pure risk, Speculative risk, Physical hazard, Moral hazard, Implied authority, Fiduciary duty, Warranty, Misrepresentation, Waiver, Estoppel, Reciprocal insurer, Fraternal benefit society, Reinsurance, Non-admitted insurer, Alien insurer, Unilateral contract, Conditional contract, Offer and acceptance, Insurable interest

Read the General Insurance Concepts study guide

Sample questions & answers

1. Buying insurance to handle a risk is an example of risk:

Transfer

Purchasing insurance transfers the financial consequences of a risk to the insurer.

2. A condition that increases the likelihood or severity of a loss is a:

Hazard

A hazard is a condition that increases the chance or severity of a loss.

3. The actual cause of a loss, such as an illness or injury, is a:

Peril

A peril is the cause of a loss, such as illness, injury, or accident.

4. Insurers use the law of large numbers to:

Predict losses more accurately across a large group

The law of large numbers improves the accuracy of loss predictions as the number of similar exposures grows.

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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.