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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Michigan Accident & Health exam — 44 practice questions.

Subtopics: Indemnity, Representation, Waiver, Conditional receipt, Risk definition, Morale hazard, Peril, Risk transfer, 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, Law of large numbers, Physical hazard, Moral hazard, Implied authority, Fiduciary duty, Warranty, Misrepresentation, 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. A health insurance contract that reimburses actual covered medical expenses reflects the principle of:

Indemnity

Reimbursing actual covered expenses reflects the principle of indemnity, restoring the insured without profit.

2. Statements made by a health applicant believed true to the best of knowledge are:

Representations

Application statements are generally representations, believed true, rather than absolute warranties.

3. The voluntary giving up of a known right by an insurer is called:

Waiver

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

4. A conditional receipt given when an application and premium are submitted provides coverage:

Only if the applicant is insurable per underwriting

A conditional receipt provides coverage as of a stated date if the applicant proves insurable under underwriting.

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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.