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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Maine Property & Casualty exam — 39 practice questions.

Subtopics: Waiver, Concealment, Fortuitous loss, Personal contract, Unilateral contract, Law of large numbers, Handling risk, Insurer classifications, Adverse selection, Elements of a contract, Insurable risk, Hazards, Definitions, Authority of producers, Legal interpretations, Principle of indemnity, Utmost good faith, Warranty, Waiver and estoppel, Subrogation, Reinsurance, Admitted vs nonadmitted, Domestic foreign alien, Aleatory contract, Contract of adhesion, Apparent authority, Rebating, Risk pooling, Pro-rata cancellation

Read the General Insurance Concepts study guide

Sample questions & answers

1. The voluntary giving up of a known right, such as an insurer choosing not to enforce a policy condition, is a:

Waiver

A waiver is the intentional and voluntary relinquishment of a known right.

2. An applicant who deliberately withholds a material fact from the insurer is guilty of:

Concealment

Concealment is the intentional failure to disclose a material fact to the insurer.

3. For a loss to be insurable it must generally be fortuitous, meaning it is:

Accidental and unexpected from the insured's standpoint

An insurable loss must be fortuitous, that is accidental and unexpected from the insured's standpoint.

4. An insurance policy is a personal contract, which generally means it:

Insures a person's interest and cannot be freely transferred without the insurer's consent

As a personal contract, an insurance policy insures a person's interest and is not freely assignable without consent.

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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.