Free General Insurance Concepts Practice Questions
Missouri Life, Accident & Health exam — 61 practice questions.
Subtopics: Unilateral contract, Conditional contract, Reinsurance, Measurable loss, Express authority, Handling risk, Insurable risk, Hazards, Definitions, Insurer classifications, Adverse selection, Elements of a contract, Legal interpretations, Law of large numbers, Indemnity, Aleatory contract, Contract of adhesion, Utmost good faith, Apparent authority, Fiduciary duty, Reciprocal insurer, Estoppel, Insurable interest timing, Competent parties, Warranties, Material misrepresentation, Waiver, Parol evidence, Implied authority, Law of agency, Pure risk, Speculative risk, Risk sharing, Risk reduction, Fraternal benefit society, Insurer financial strength, Producers, Contract characteristics
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Sample questions & answers
1. A contract in which only one party makes a legally enforceable promise is:
Unilateral
Insurance is a unilateral contract because only the insurer makes a legally enforceable promise to pay.
2. An insurance contract that requires certain conditions be met before the insurer pays is:
Conditional
Insurance is conditional because the insured must meet conditions, such as paying premium and filing proof of loss, before benefits are paid.
3. Reinsurance is best described as:
Insurance an insurer buys to transfer part of its risk
Reinsurance lets an insurer transfer a portion of its risk to another insurer to manage exposure.
4. An element of an insurable risk is that the loss must be:
Definite and measurable
Insurable losses must be definite in time, place, and amount, and measurable in dollars.
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Practice: General Insurance Concepts
Answer choices are shuffled every time, and every question comes with an explanation.
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.
