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  4. General Insurance Concepts

Free General Insurance Concepts Practice Questions

Missouri Accident & Health exam — 45 practice questions.

Subtopics: Peril, Physical hazard, Risk transfer, Indemnity, Consideration, Risk definition, Morale hazard, Adverse selection, Stock insurer, Mutual insurer, Admitted insurer, Foreign insurer, 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, 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. In insurance terminology, the cause of a loss, such as fire or illness, is a:

Peril

A peril is the direct cause of loss, while a hazard is a condition that increases the chance of loss.

2. An icy sidewalk that increases the chance of injury is an example of a:

Physical hazard

A physical hazard is a tangible condition that increases the likelihood or severity of a loss.

3. Purchasing insurance is an example of which risk management technique?

Risk transfer

Buying insurance transfers the financial consequences of risk to the insurer.

4. Medical expense insurance that reimburses the insured for actual covered costs reflects the principle of:

Indemnity

Indemnity aims to restore the insured to the prior financial position by reimbursing actual covered expenses.

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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.